There are so many benefits of using prepaid card listed below:-
1. A prepaid card is a payment card that lets you spend money that you have loaded onto the card in advance. Each time you use the card, you spend the money that you put on it in advance. Most prepaid cards can be used like a regular debit card and an ATM/Checking card. Some even come with insurance coverage, rewards programs and other perks.
2. A prepaid debit card allows you to spend money that you have put on the card in advance. Some prepaid cards can be reloaded at a bank machine with cash. Just swipe the card, enter a pin number and hold on tight! … There is no credit check, you cannot go into debt since you spend money that you put on the card initially, and there is no interest or minimum balance needed – perfect for people with a bad credit rating or a history of going over their bank’s credit limit.
3. A prepaid card can also be purchased with a credit card to make payments; however, the funds must be converted from a bank account and sent to the prepaid card provider. Prepaid cards come in various formats: paper-based gift cards purchased at retail stores and electronic/digital cards purchased online.
4. With a prepaid card, you create an account and load it with cash. Then you can use that money to make purchases at stores or online. Prepaid cards are designed for credit-challenged consumers who don’t have bank accounts or credit cards.
5. A prepaid card is a convenient way to make purchases online, especially when you aren’t sure if your preferred merchant accepts debit cards. Think of it like a gift card, but with more flexibility. Prepaid cards are typically accepted at more locations than regular debit cards or credit cards, making them useful at hotels, for parking or transportation fees, and not tied to regular bank accounts.
6. Additionally, like gift cards, some prepaid cards can be bought over the internet or over the phone. However, unlike gift cards, prepaid cards are not reloadable; once you run out of money on them you simply throw the card away. Also, some prepaid cards allow you to earn interest if your savings exceed a certain amount.
7. Prepaid cards do not have the same safeguards in place as debit cards, however. Prepaid cards are not covered by regulators in the same manner as debit cards. There is currently no rule about how much money must be kept in reserve in case of card losses .
8. A prepaid card is an electronic payment card that provides access to the cardholder’s funds in much the same way as an ATM card. At any time, you can reload your card with more money or check how much is left in your account by looking at your prepaid card balance.
9. A prepaid card is great to give as a gift, because you can load the card with money and the recipient gets the same benefits as a debit card holder. You can even set up a monthly recurring payment (if you know what it will be) and have the amount deposited each month onto your card.