It can be very confusing trying to differentiate between prepaid credit cards and other cards. Since they all look alike and contain the same information, and cash, the confusion can just grow more and more. Well, here is a short guide to help you understand what a prepaid credit card actually is.
What Is a Prepaid Credit Card. A prepaid card is a way of paying for goods you want to purchase. The card can be used to make payments. The card looks just like a debit card or any other card, but it comes with a spending limit.
The card looks just like a debit card or any other card, but it comes with a spending limit. For instance, say you have a card which has a limit of $50,000 and you wish to purchase merchandise worth $60,000; you can pay the excessive amount in cash or you can purchase unnecessary items later when you have the amount.
Benefits Of The Card. Many prepaid credit cards fall under the co-branded card programs; this program allows the cards to be merged with brands such as MasterCard. Since MasterCard and Visa allow members to use their card from any location it's a popular choice for those who are constantly on the go.
Another benefit of the co-branded card programs is that it allows you to withdraw cash anytime. You may use the card to withdraw cash in the middle of the night as well. The program as well as the card offers the holder 24 hours service non-stop.
Let's Go Online. Since the cards are in the co-branded card programs, this allows you to make payments online as well. Brands such as Visa and MasterCard are widely accepted online. The buyer does not have to worry about having cash on hand in order to buy what he/she wants.
Another plus point of owning a prepaid card is that you can even make purchases online anytime. You may shop for whatever your heart desires and make the payment with the card. The cards are not just limited to retail stores, they can be used everywhere.
Less Hassles. Money in the form of cash can be hard to roam around with. It is also not safe considering the conditions nowadays. If someone is carrying a bulk of cash, they are easily noted and robbed. On the other hand, those who have the prepaid credit cards are safer as no robber would attempt to steal them. Why? Those cards require special PIN numbers which only the holder has access to. This means without the PIN number, the card is of no use to the robber no matter what amount may be stored in the card.
What Is a Prepaid Credit Card. A prepaid card is a way of paying for goods you want to purchase. The card can be used to make payments. The card looks just like a debit card or any other card, but it comes with a spending limit.
The card looks just like a debit card or any other card, but it comes with a spending limit. For instance, say you have a card which has a limit of $50,000 and you wish to purchase merchandise worth $60,000; you can pay the excessive amount in cash or you can purchase unnecessary items later when you have the amount.
Benefits Of The Card. Many prepaid credit cards fall under the co-branded card programs; this program allows the cards to be merged with brands such as MasterCard. Since MasterCard and Visa allow members to use their card from any location it's a popular choice for those who are constantly on the go.
Another benefit of the co-branded card programs is that it allows you to withdraw cash anytime. You may use the card to withdraw cash in the middle of the night as well. The program as well as the card offers the holder 24 hours service non-stop.
Let's Go Online. Since the cards are in the co-branded card programs, this allows you to make payments online as well. Brands such as Visa and MasterCard are widely accepted online. The buyer does not have to worry about having cash on hand in order to buy what he/she wants.
Another plus point of owning a prepaid card is that you can even make purchases online anytime. You may shop for whatever your heart desires and make the payment with the card. The cards are not just limited to retail stores, they can be used everywhere.
Less Hassles. Money in the form of cash can be hard to roam around with. It is also not safe considering the conditions nowadays. If someone is carrying a bulk of cash, they are easily noted and robbed. On the other hand, those who have the prepaid credit cards are safer as no robber would attempt to steal them. Why? Those cards require special PIN numbers which only the holder has access to. This means without the PIN number, the card is of no use to the robber no matter what amount may be stored in the card.
About the Author:
It is more useful to hold a prepaid card. Because they are merged with the co-branded card programs, they make travels a lot easier.
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