Why You Should Get A Prepaid Card.

By Claudia Riegner


Prepaid cards are cards that have on it an already pre-stored monetary value and have no attachment whatsoever with any bank account. They are unlike debit cards that have links to accounts from where money spent is deducted and it is also not like credit cards in which case money is borrowed from the issuer.

Prepaid cards are also referred to as Stored-value cards. They are usually not issued in the name of any individual and most times with anonymity just like with utility prepaid cards.

Stored-value cards are issued to people anonymously as they do not need to be issued under anybody's name just like in prepaid utility cards. Just like utility cards, where a stored values are also used, and when exhausted they are reloaded or thrown away, so also prepaid card are topped up with money.

Prepaid cards are mostly used for low cost payments like train tickets, pay phone fees, for purchases of beverages etc. Prepaid cards are a good substitute for credit cards

Prepaid cards are used for payments of transactions of little monetary value like paying for coffee, use of vending machines, to pay for phone calls at booths etc.

Closed system prepaid card, this type of cards are issued by a merchant and is used strictly to pay for services rendered by the brand or items purchased and no other. These closed prepaid cards are usually not of huge value, and can be compared to gift cards.

The co-branded prepaid cards are the type of cards that are issued by banks in affiliations with one or more business merchants. These cards are to be used only with the businesses and the difference between this card and closed system prepaid card is the affiliation with the bank.

Closed prepaid cards are cards issued by a business enterprise to its customers and can only be used for payments pertaining to the business enterprise only.

Prepaid cards are issued on the basis of the money stored and not by your credit; even when there's no money in the account it will still be issued. Prepaid cards are well accepted, even more than credit cards. It saves money for the users and also reduces overspending. Prepaid cards are giving more values to the customers.

Another benefit prepaid cards provide is that, when they are issued, there is no need for a background check of the credibility of the holder. Even if the card holder is indebted to the bank, the card will still be issued to him or her. With prepaid cards, there is no need to sign pay off consent unlike with credit cards.

Bill Adams is a business strategist. He has been doing this for a few decades and now he works at a prepaid card section of a card issuing company. He thinks the use of co-branded prepaid cards is healthy for businesses and individuals.




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