What Advantages of Prepaid Debit Cards and why Consumers Are Attracted By Prepaid Debit Cards
Anything you charge to this card will be deducted automatically from the cardholder’s funds. To be able to use a prepaid debit card for payments, the cardholder must have existing balance or credit in his/her account. Once the amount of zero is reached, the cardholder will need to submit a new cash deposit to continue using the debit card. In this article, let us focus on the pros and cons of using a prepaid debit card compared to a traditional credit card. The Pros of Using A Amex pre paid card - Cashless shopping. There is no need to bring along cash when doing your shopping at groceries or malls. The fact that you can easily freeze your account in case that your card is misplaced or stolen, it is then more secure to carry a prepaid debit card than carrying cash. Convenient for travels. If you are going on a trip, it is generally more convenient and safer to bring your prepaid debit card instead of cash or checks. Prepaid debit cards with MasterCard, American Express and Visa logos are recognized anywhere so you can pay for your purchases or bills without hassle. No need to worry about resettlement. You don’t need to be bothered about missing due dates or being late with your payments because the bills you charge your debit card are automatically paid off using the money you deposited in your debit card account. That means you will not be charged with additional interest rate or penalty fees. Anyone can get a debit card. It doesn’t matter whether you have a descent credit standing or not, you can get your prepaid debit card approved no matter what. Even parents can apply for a debit card for their kids who are younger than 18 years of age. Avoid the risk of bad debt. Using a prepaid card instead of a credit card minimizes the risk of bad debt since you cannot made advanced purchases or borrow against a credit line. You can simply leave your purchase to another time or shell out cash, if you don’t have available cash in your debit account. The Cons of Using A Prepaid Debit Card Per Transaction Fees. With a american express debit cards, you are charged with a minor fee every time you create a transaction. To minimize your costs, plan your purchases in advance so you can pay for all your purchases only once and pay only one transaction fee. No credit line. This is what makes debit cards different from credit cards. Cardholders are not given the privilege to borrow against their credit. Nevertheless, you can still use this limitation to your advantage. Look at the positive side of it. You can prevent any unintended purchase and it can help you manage your spending.