Reloadable Prepaid Card Basics You Should Remember

Over the years, there’s a recent plastic card that has become quite popular—reloadable prepaid cards. While plastic cards have been designed to serve more or less the same purpose, reloadable prepaid cards are considered in a league of its own especially in terms of cashless transactions and convenience.

Several statistics indicate that more and more people have been using reloadable prepaid cards for their financial transactions. Data provided by the Mercator Advisory Group revealed that an impressive $40.85 billion has been loaded onto reloadable prepaid cards. And this was only in 2010.

Undeniably, this highlights the reputation of reloadable prepaid cards as an efficient and effective financial tool. Another great thing about prepaid cards is they are easy and straightforward to use. Loading money on the card is also convenient and easy as you have several methods available at your disposal.

Depending on the provider, some of the ways to reload money onto the card can be through direct deposits, bank transfers, and secure online portals. You just have to choose which among the reloading options would suit your needs best and go for it. Other reloadable prepaid card essential you need to know include:

You will only provide basic information.

If you want to obtain a credit or debit card, you need to put up with time-consuming screening processes and background checks. Aside from that, you will also be required to provide personal information and submit financial documents. From there, you would need to wait for a few weeks before you will know if you are approved.

If you are particular about protecting your privacy, applying for a prepaid card is your best option. When getting a reloadable card, you won’t have to undergo any background checks. You also would be required to provide only basic information such as your contact number, name, and maybe contact number.

Also, there is no need for you to provide many financial documents as your credit standing won’t be a factor if you can obtain a card or not. You just need to provide the basics and you are good to go. You don’t have to wait for days. That’s sheer convenience and ease you can’t find anywhere else.

You will pay some transaction fees.

If you use a plastic card including a reloadable prepaid card, you need to be aware of the possible charges for each transaction that you will do. From purchase transactions to ATM withdrawals to balance inquiry, you need to check if there are charges that will be applied. Otherwise, you might be surprised with the deductions along the way.

Fortunately, most prepaid cards only charge a small amount for transactions done using the card unlike credit and debit cards. Other plastic cards, especially credit cards are notoriously famous for the exorbitant monthly fees, charges, and interests they charge. Check with your provider for any monthly fees or charges.

You will be entitled to freebies and perks.

Many prepaid card providers give out discounts, freebies, and other exciting perks to their cardholders and new prospects. Surprisingly, some of the freebies and perks provided are similar to that provided by credit and debit cardholders.

For instance, some prepaid card providers offer a 90-day protection for stolen, lost, or broken items. Others also provide travel security through legal and medical aids. Others also provide discounts on popular brands.

You will get some customer protection.

Just like credit cards, some prepaid card providers also provide convenience and ease that’s hard to resist. No wonder many people consider owning a prepaid card the next best thing to actually owning a credit or debit card.