Different Types of Prepaid Credit Cards

Published on 13 July 2012 by Raffick Marday

The Different Prepaid Cash Cards for you

Prepaid atm cards are prepaid cards that you can use when doing Internet shopping or if you need to use an atm cash machine. The prepaid cards are pay as you go where the owner preloads the cash and you spend only what you have loaded.

The prepay mechanism allows you to make purchases without cash because you have already put your cash for the prepaid card beforehand. So when you withdraw from an atm, the amount is deducted to the total amount loaded into the card and you can view your statement online or opt in to receive balance updates.

This is a similar to a credit card where you do not also make cash payments. But with credit cards, the amount that you have to pay added to your agreed credit limit and this amount needs to be repaid either in full or in agreed monthly installment payments.

There are different prepaid atm cards available today. Prepaid Visa cards can be used in more than 150 countries worldwide. They employ about 26 million merchants in these locations. Prepaid MasterCard have most of the market where you can present it in over 210 countries. Maestro prepaid card is also available in the market and is present in 100 countries over the world.

One main benefit of using prepaid atm cards is that you know how much you can only spend using prepaid card. While this is not good news for some, this can be a real advantage especially to those who do not know how to regulate their spending when they are shopping. In this case, a shopper is saved from the nightmare of having debts with a typical credit card or other instruments of credit.

Another advantage is the convenience of not bringing loads of cash in public, especially when the location poses some risks. This advantage is actually similar to all types of purchasing instruments known to you.

Because of the promising benefits that it implies, the prepaid atm cards are directed to different types of markets. One segment is the teenagers and young adults who do not have their own source of income or money. Another segment is the regular consumers, such as parents and adults who want to effectively manage their budget and spending habits.

Finally, this product is particularly beneficial to businesses who likewise want to impose an effective budget to their directors or officers and other authorized purchasers. In such a scenario, regulation of spending is essential in order to manage cash, which is a very important asset in the operations facet of a business.

Since prepay cards do not offer credit such as in a credit card, credit checking is not imposed on you. However, service providers still require authenticating your personality, as well as your address, so they check on your information, which sometimes include details about your credit. This is a good instrument, especially for those people who have negative credit standing.

Because the arrangement in this case is very safe for both the prepaid card provider and the user, biases against negative credit are usually overlooked. This, however, is the general impression. If you have a negative standing, you should still employ the advice of the prepaid atm cards provider.

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