LONDON – FINANCE – Prepaid debit cards became the ascending tendency in the field of non-cash payments. The number of people who prefer to use a prepaid card for purchases or payments constantly grows. Prepaid cards combine simplicity of cash payments and advantages of the debit card, opening ample opportunities for clients. In comparison with cash, prepaid cards are more reliable and sometimes more convenient.
Prepaid cards can be issued for a person with a bad credit history or no credit history just like secured credit cards one can find out more about here https://effectify.com/top-4-secured-credit-cards-to-rebuild-bad-credit/ and get a chance to improve the credit score. However, prepaid cards do not create debts. We will provide several simple reasons why people choose prepaid cards.
You Don’t Need to Have the Bank Account
The main difference between the prepaid debit card and the credit card is that you don’t need to open and manage the bank account. If you want to receive the credit card, it demands an additional check of solvency of the applicant. You need to have a good credit history. To become the owner of the prepaid card, you don’t need to undergo additional testing and control. You can buy the prepaid debit card in any retail shop.
Also, for credit cards, the card issuer (bank) decides what sum to set for you as a credit limit. It isn’t really convenient if you need high limits. For prepaid cards, you independently decide how much money you will keep on the card.
Protection Against Fraud
As it was already noted, prepaid cards aren’t linked to the bank account. Therefore, if you are afraid to use your debit/credit card online since swindlers can hack the details of your bank account, you can use prepaid cards. Even if details of your prepaid card were stolen, the maximum sum that you can lose is the sum left on your card, and you will never lose the details of your bank account.
On the other hand, there is no protection of prepaid cards if the card is lost. If you buy items online using the prepaid card and those aren’t delivered to you or you have received a wrong order, you should most likely look for the seller, but not for the card issuer. To protect yourself, you can choose the prepaid card Visa which has the system of return. This is one of the reasons the number of prepaid cards issued grows.
Control of Your Expenses
When you go abroad, you can always use the prepaid card. Generally, there are three currencies for such cards:
- pounds sterling
This is another advantage offered by these cards. You will be able to make payments in those currencies everywhere the cards are accepted.
Prepaid cards can be topped-up previously or on demand. The last option can be very useful, especially when you want to control expenses of your children, for example, when they go with school excursions. If you want to prevent an expense of all money in one day, you can choose the function of gradual replenishment of the card. You can top-up the card daily instead of providing all sum at once.