Debit cards have been around for years. But lately, the use of prepaid debit cards has been rising in popularity especially when it comes to online payments. However, you may be asking what exactly are prepaid debit cards and why should you own one?
What is a prepaid debit card?
You can get a prepaid debit card through an online payment provider or other financial institutions. They are reloadable cards that you can use multiple times. These don’t have to be connected to your bank account and enable you to do the things that you would normally do with a credit card but won’t build up your credit. Unlike credit cards, the amount that you are able to spend with a prepaid card is limited to the funds that you put into it.
Why you should own a prepaid debit card?
Other than the fact that you won’t be building up credit with each use, using a prepaid debit card can also help you manage your finances in several ways, such as:
Control spending. Using a prepaid debit card is the perfect way to control your spending when shopping online. You can set a budget for yourself by only putting in the amount that you will want to use for your online purchases. This will help you keep yourself in check to not spend more than the amount that is on your card.
Get to easily add funds. Applying for a prepaid debit card through your online payment provider can make adding funds to the card much more convenient for you. You can use the funds in your online payments account to instantly transfer the amount that you want into your card.
No interest. Debit cards store money. You can’t gain interest from the stored amount. You also don’t have to pay any interest fee for the amount that you use to pay.
No fees. Credit card payments typically have added on fees. Debit card payments do not have fees. Nor do you have to pay a service charge yearly. However, there are some debit cards that do have certain fees such as for obtaining the card and reloading it.
Security. When you make a debit card transaction, your details are placed online. If ever your card details are obtained by a cybercriminal, only the amount that is stored might get stolen.
Different kinds of debit cards
There are various debit cards that you can get online. There are those debit cards that are for one-time use and some that can be used just like a bank ATM card. There are virtual debit cards and those have physical cards that can be sent to you.
Choose the right debit card
Owning a debit card has a lot of advantages. You may own a number of these or make a careful study to choose the best one to get. There is this reliable money services company that has offers easy approval for USD debit card. If you decide to own one, this USD debit card can give you a lot of benefits that other cards cannot such as being able to receive funds internationally.