With regard to the payment options available to customers today, there are many. People can either use cash or plastic money to pay for their bills and purchases. However, many prefer to opt for plastic money over cash as it is safer and more convenient to carry and use.
However, everything related to these cards is not as simple as it appears to be. The selection of an appropriate payment card is a tough decision as there are many options available to select from. These include credit cards, debit cards, and prepaid cards. Due to the similarities between the usage and cancellation policies of these cards, many people mix up their basic features too.
In order to highlight the basic difference between co-branded prepaid cards and debit cards, in this article, we are discussing various features of the two cards. Read on to determine which card is more suitable for you.
2. Credit Inspection For the issuance of a prepaid card to customers, usually no credit check is performed. However, prior to issuing a debit card, banks usually go through the credit score and rating of the customers to ensure that they are responsible enough to repay on time if they ever need a loan.
Maintenance and Service Charges When a transaction is made via a debit card, banks usually deduct a fixed fee as service charges. However, the usage of co-branded prepaid cards is usually free of cost. Rather, these cards provide additional incentives to the users.
Credit Check For Eligibility When it comes to the issuance of prepaid cards, the cards are usually issued without any credit check. However, for debit cards, a thorough check is conducted for customers' previous credit scores, especially if the customer wishes to avail the overdraft facility.
5. Compatibility with ATM When it comes to the usage of these cards at ATMs, debit cards provide their customers with the facility on a wide scale. On the other hand, only a few co-branded prepaid cards can be used at ATMs to withdraw money instantly.
ATM Services At the ATMs, a debit card can be used to withdraw money but a prepaid card can't be used in the same way. There are only a few prepaid cards that actually provide customers with ATM services.
Whether it's a debit card or prepaid card - both helps the users to keep a prompt record of their expenditure. However, co-branded prepaid cards also allow controlling these expenses by staying within the limits.
However, everything related to these cards is not as simple as it appears to be. The selection of an appropriate payment card is a tough decision as there are many options available to select from. These include credit cards, debit cards, and prepaid cards. Due to the similarities between the usage and cancellation policies of these cards, many people mix up their basic features too.
In order to highlight the basic difference between co-branded prepaid cards and debit cards, in this article, we are discussing various features of the two cards. Read on to determine which card is more suitable for you.
2. Credit Inspection For the issuance of a prepaid card to customers, usually no credit check is performed. However, prior to issuing a debit card, banks usually go through the credit score and rating of the customers to ensure that they are responsible enough to repay on time if they ever need a loan.
Maintenance and Service Charges When a transaction is made via a debit card, banks usually deduct a fixed fee as service charges. However, the usage of co-branded prepaid cards is usually free of cost. Rather, these cards provide additional incentives to the users.
Credit Check For Eligibility When it comes to the issuance of prepaid cards, the cards are usually issued without any credit check. However, for debit cards, a thorough check is conducted for customers' previous credit scores, especially if the customer wishes to avail the overdraft facility.
5. Compatibility with ATM When it comes to the usage of these cards at ATMs, debit cards provide their customers with the facility on a wide scale. On the other hand, only a few co-branded prepaid cards can be used at ATMs to withdraw money instantly.
ATM Services At the ATMs, a debit card can be used to withdraw money but a prepaid card can't be used in the same way. There are only a few prepaid cards that actually provide customers with ATM services.
Whether it's a debit card or prepaid card - both helps the users to keep a prompt record of their expenditure. However, co-branded prepaid cards also allow controlling these expenses by staying within the limits.
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Credit card programs are ideal for those customers who already have bank accounts and are concerned about not exceeding their expenditure balances. But, for those individuals who don't have bank accounts yet want to avail quick shopping facilities, http://www.gobankpro.com/co-branded-cards.php are the best option.
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