Usefulness of Prepaid Debit Cards

Published on 1 September 2012 by Raffick Marday

Usefulness of Prepaid Debit Cards

Prepaid debit cards are almost similar to ordinary credit cards and debit cards. Prepaid debit cards can also be used to withdraw cash and make purchases. The only difference is the source of money spent on the debit card transactions.

While using credit cards, the money spent is not user’s but is lent to him by the credit card company, which is surely to be paid later with interest. This may lead to amassing debts. Debit cards use the cardholders own money deposited in his debit card bank account, but chances of overdrafts may still occur that cause costly rates.

In case of prepaid debit cards, there is a preloaded amount on the card and the user can only spend as much amount he has in his card. This leads to no chances of amount going into debt.

Along with prepaid debit cards, user gets a PIN code which he must change immediately for his remembrance. Money can be easily loaded onto a prepaid debit cards through cash or directly at a bank, at pay zone, at post office or via bank transfer. With enough credits, consumer can use prepaid debit cards for purchases and withdrawals.

Prepaid Debit Cards- Know the benefits!

Easy availability – There is generally no credit check or testing procedure done while applying for a prepaid debit card except an identity check. Therefore, users can easily get prepaid debit card without worrying about their credit history.

Controlling of finances – Users can easily manage their finances with prepaid debit cards as they can plan how much credits they have and how much debits have been done. Moreover users can get a full breakup of their transactions so that they can trace what was purchased from where and at what time. The breakdown can be also used to make necessary adjustments in the budget.

Debt free cards – Prepaid debit cards keep users free from the risk of debt. Since they are confined to spend only the amount they have loaded in their prepaid debit cards, there is as such, nil chance for users to fall into debt.

Good for Travel – Prepaid debit card are a great option for users going abroad as they can carry their cards instead of carrying huge cash in pocket. Thus, it become more convenient to carry a prepaid debit card while going on short or long distances travel.

More information on prepaid debit cards is available on


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