As Visa prepaid card get more and more popular, the percentage of people using them is still very low compared to traditional debit and credit cards. In fact, most people do not know that there is a payment card referred to as the prepaid card. Many do not know its fundament difference from a traditional credit or debit card.
While the traditional credit and debit card are either linked to a credit facility or a bank account, a prepaid card is not linked to anything. Our concept of the prepaid card is simply a plastic alternative to carrying money or cash around and it is often called an everyday card. A prepaid card looks just like any normal traditional credit or debit card, there is a card number, signature strip at the back and company branding.
Here are some benefits of prepaid cards:
There is a growing fear about using your traditional debit card or credit card when making payment online. This is because scammers and fraudsters have often copied the credit or credit cardholders’ detail to defraud them of the amount in their bank accounts in the future.
Prepaid cards are really difficult to clone. Even if they can manage to clone your prepaid card, the fraud is limited to the amount preloaded on the card. The scammers will not have access to the money in your bank account. Prepaid cards are a perfect tool for online shopping. Since there is no credit facility, if your card number is stolen by fraudsters scamming you on a dodgy website, the damage is limited to the funds you have on the card or until you realize what’s happened and ask the prepaid card provider to block you card.
The mentality with prepaid cards is that you can only spend money that is previously loaded on the card. You cannot carry a credit balance like the traditional credit card; this can be a highly useful feature for those who want to improve their personal finance by accumulating savings or reduce the size of their debt. This can vastly help promote responsible spending to the cardholder as it does not allow you to spend money that you don’t have. This is an ideal solution for those who want to control their spending to enable themselves to save for long-term goals like retirement or managing debt.
Keeping Money Safe when Travelling
Just like traditional credit cards, prepaid Visa card can be easily used overseas. This is a perfect solution for globe trekkers as prepaid cards are a much safer alternative to the traditional credit and debit cards. In the event that your prepaid card is lost or stolen, your losses are limited to the amount that was preloaded on the card. Unlike traditional credit or debit cards, you will not be stuck with a drained bank account, damaged credit or lost time recovering funds. Optimally, prepaid cardholders will have full damage control.
Solution for the Underbanked
This is also a great option for people who do not currently have a bank account. A prepaid card is a much viable option than putting your money under your mattress or carrying cash wherever you go.
Please visit www.transact24.com to learn more about prepaid Visa Cards’ benefits and functionalities.