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The Benefits Of Using Prepaid Cards To Individuals.

By Claudia Riegner


Prepaid card is a type of payment cards that has an already fixed monetary value, and not attached or linked to any external bank accounts. They are different form debit cards, where the money is deposited and debited directly from the bank during a transaction. They are also unlike credit cards, where there are no credit limits from the card or the bank.

Prepaid cards can also be referred to as a stored-value card. They are issued to clients under anonymity as there's no need for attachments with individuals.

Prepaid card programs work just like utility prepaid cards, when the stored value is exhausted, the card owner can decide to dispose the card or top it up with more money for continuous usage. The stores value is monitored by computers of the issuing company.

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 issued by a card issuing company in partnership with one or more businesses to be used only for transactions with the businesses.

What Are the Benefits of Having a Prepaid Card. Security has to be the main benefit of using a prepaid card, and this is attributed to the fact that it isn't registered with anyone's account or name.

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.

Prepaid cards can also function like debit cards, they can be used to withdraw money from ATMs as long as the card holder has enough value on the card. Prepaid cards are also used to pay utility bills. It should be noted that a cardholder can get prepaid card as much as he or she needs.

The use of prepaid cards is preferred to credit cards because the merchant does not have to wait for the verification of the user before the card can be used unlike with the use of credit cards. Prepaid cards also help to reduce spending. Prepaid cards are also used at Automated teller machines, they can be used to withdraw cash, but only of the monetary value of the card is greater than or equal to amount that is to be withdrawn. There are quite a number of prepaid card programs available across the world. So research and choose the most suitable co-branded prepaid cards for your brand and enjoy all the amazing benefits.




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