Basic Facts About Prepaid Debit Cards

The following are three of the most important things that all consumers should know about prepaid debit card programs.

1.Prepaid cards have unique characteristics. Consumer experts have always thought that prepaid debit cards are hybrids of conventional credit cards and traditional debit cards. After all prepaid cards possess the basic features of both debit and credit card programs. In what way? Let us find out.

Many consumers know for a fact that before they can use debit cards in making purchases as well as in paying their bills and expenses, they need to load sufficient funds onto their debit card accounts first.

Read more Prepaid Debit Card Basics

Resource:  prepaid debit cards

When filling out forms, you may get a message on your screen asking if you want to save your information for the next time you shop.  It’s best to just click on NO.

Read more How to Safely Use Your Debit Card for Online Shopping

Resource/s: prepaid debit card

Limited liability protection. Owners of credit cardholders are usually provided with a zero liability protection against fraudulent transactions while some credit cards that offer $50 liability protection.

Meanwhile debit cardholders can enjoy the $50 liability protection on unauthorized charges but only if they are able to report the fraudulent charge within 2 days after the transaction was made.  Beyond that time period, a debit cardholder can pay up to $500 or pay the entire bill, whether it was made with or without consent.

More difficult to get refunds. In case there is a problem with your purchase, getting a refund can prove to be more difficult if you used a debit card for payment.  This is because your purchase is instantly deducted from your account the moment confirm your order.

Read more The Risks of Prepaid Debit Cards

However, such belief can lead to financial problems. For example, if an individual will not closely consider the differences between a prepaid debit card and a secured credit card, he will most likely choose a card program that is not suitable to his financial standing. And this can spell out bigger credit problems in the future, especially when he does not know how to manage his card account properly.

So, to avoid this scenario, we encourage our readers to identify the factors that distinguish one card program from the other. This way, you can choose the right plastic card that will work best to your advantage and that will help you avoid incurring large financial obligations.

Read more How do Prepaid Debit Cards and Secured Credit Cards Differ?

However, holders of debit cards need to be careful of probable penalty charges. What might be a $50 worth of purchase may suddenly become $80 or maybe more because of the additional charges. What are these types of penalty charges?

Below is a list of debit card charges to watch out for:

Negative Balance Penalty. Holders can only use their debit cards for any payment as long as there is an available balance into the account. Though there can be circumstances when the purchase might exceed the accessible balance. In this instance, the transaction might still be accepted but the owner is going to be charged with a penalty fee.

Decline Charge. Once again, prepaid debit card holders are not permitted to overdraw. Therefore, if the holder attempts to make a purchase order which is too large compared to the available balance, the transaction will most likely be declined and the card holder will be penalized for making an attempt.

Daily Limit Penalty. Several prepaid debit card companies impose a limit for each amount of transaction the card holder can make on a daily basis. Going beyond that limit could mean extra penalty fees.

Read more Prepaid Debit Card Penalty Fees to Watch Out For

How to avoid becoming a victim of credit card fraud? Check the following basic safety tips:

Https://. In order to ensure the security of a website, make sure that the URL or the website address begins with https://. Everyone should be able to check this from individual’s address bar.

Privacy Policy. An online merchant must provide its Privacy Policy on its website. Take an extra time to read this important information. Simply because every merchant has its own set of policies on protecting their customer’s rights to privacy, customers should be clearly aware of how their personal information will be used and what each customers can expect from the merchant.

Merchant Reputation. It  is strongly advised to purchase only from trusted merchants on the web. Find out the company’s background and reputation.

Read more Safety Tips on Using Prepaid Debit Cards Online

Guaranteed Credit Approval Credit Cards vs. Traditional Credit Cards

Unlike traditional credit cards, these prepaid debit cards help you to budget your money wisely by not extending you credit.
Instead, accounts are prepaid for a specific amount while still being backed by VisaÆ for universal acceptance. There is no line of credit and accounts are only good for the balance applied.

Benefits of guaranteed approval credit cards

• No More Check Cashing Locations
• Perfect for all your friends and family
• Direct Deposit from your Employer
• No Credit Check or Bank Account Required
• No Employment Verification
• Set up Automatic Bill Payments from your VisaÆ
• Eliminate check-writing hassles
• Avoid late-payment fees
• The cardholder may only withdraw funds or make purchases up to the balance on the card.
• You cannot overdraft the account. There are no late fees or interest charges.

The credit cards on the following pages are guaranteed approval debit cards. Meaning everyone is approved and they don’t pull your credit. They can be used as regular Visa Cards or as gift cards. These credit cards do not have a set credit limit, so your credit limit will equal the amount you load on to the card.

Guaranteed Credit Approval Credit Cards vs. Traditional Credit Cards

Unlike traditional credit cards, these prepaid debit cards help you to budget your money wisely by not extending you credit. Instead, accounts are prepaid for a specific amount while still being backed by VisaÆ for universal acceptance. There is no line of credit and accounts are only good for the balance applied.

Benefits of guaranteed approval credit cards

• No More Check Cashing Locations
• Perfect for all your friends and family
• Direct Deposit from your Employer
• No Credit Check or Bank Account Required
• No Employment Verification
• Set up Automatic Bill Payments from your VisaÆ
• Eliminate check-writing hassles
• Avoid late-payment fees
• The cardholder may only withdraw funds or make purchases up to the balance on the card.
• You cannot overdraft the account. There are no late fees or interest charges.