The Advantages of Prepaid Debit Cards

The Advantages of Prepaid Debit Cards

One of the most popular things in use in the United States currently are the prepaid debit cards which started way back in the 1990’s and over the years it has only gained popularity. In fact “prepaid card transactions grew at a compounded annual rate of 21.5%” over the years states FoxBusiness. These prepaid debit cards were started because in the 90’s credit card companies realized that a whole lot of people were unable to meet the requirements for obtaining a credit cards. This was because many of them didn’t have proof of residence or did not have enough money to apply for a credit card and so on. Also, there was a set of those people who though qualified initially, were unable to pay back later and hence these drove the banks to severe losses. It was in the wake of these issues prepaid debit cards were introduced.

In this system as the name suggests customers can load money and then use it through swiping. The prepaid debit cards are useful because they are not typically tied to the bank accounts hence maintaining a minimum balance and the like are not required. To get these cards, basic contact details are necessary and people with any amount of money could get these cards and put the money in them through top up. These have also become quite popular with college students and youngsters who may use them to help manage finances along with being able to avoid debts.

These prepaid debit cards are also easily available and features like no credit check and no minimum balance makes them a hot favorite among people. They can be purchased from any retail stores like Wal-Mart, Target, Albertsons from any of the 60,000-plus locations in America. Adding cash to the card can also be done in these stores in a hassle free manner.

The usage of prepaid debit cards also gives users the option of chargeback. This simply means that if purchases go wary or one is a victim of theft or fraud then one can forward a claim to the prepaid card providers easily.

Since it’s up to us to decide on the top up amount, it helps us keep our expenditure under control. The best thing about using these prepaid cards is that if you are using them abroad your money is safe and replaced if it’s lost or stolen. Unlike most debit and credit cards, prepaid debit cards don’t charge foreign-exchange fees for purchases made abroad. Only the local currency would need to match the currency in that card.

If you are the one who would like to manage their money in a better way – a prepaid debit card is the right match for your needs.