Prepaid cards have a good alternative to using cash, checks, or credit cards. And not only it can be used to shop but to pay employees and government benefits such as social security or desmpleo subsidies. Usually people use them because they lack a bank account and see it as an easy and convenient way to manage your finances. In addition to thus avoid high charges for cashing the checks.
And while it is true that these cards are not free of charge, they are relatively low when compared to those usually charged by banks.
Unlike traditional debit cards, prepaid cards are not associated with a bank account, because only have to load or fill up the card with cash amounts for your purchases, and as you spent and the balance decreases can irla recharging.
This card is a good tool to control your expenses and stick to your budget as it is impossible to go over the limit and credit cards or sobregirarte as those of débito.y and avoid the penalties imposed by banks.
These cards are offered by banks, unions, financial institutions, and some commercial establishments. There is wide acceptance as a means of payment, as the vast majority are issued under the MasterCard or Visa logo, which means it can be used wherever you see these logos. American Express also offers this product.
You can also apply online by visiting the websites of Visa, MasterCard, or American Express.
• To get this card you do not need to have established credit nor a bank account.
• If your card is lost or stolen, you can recover the money.
• Some issuers offer the same benefits that a credit card customer service 24 hours, purchase protection, roadside assistance or travel.
• You can check and control the balance and transactions go by, because information is easily accessible through the internet.
• There issuers that charge very high fees for using the card, so it is important to compare between different issuers.
• Payments are not reported to the credit bureaus so it does not help to establish or improve credit.
• Gift: cards known as “gift cards” are prepaid cards that are made as a gift instead of giving cash or items. This allows the person receiving the card to buy whatever you want and wherever.
• Stipend: If you have teens, this is a very convenient way of providing their allowance and can add money very easily. This also helps them to take responsibility in matters of money and organize their budgets.
• Travel: If you do not want to carry a lot of cash on your travels, you can take a prepaid card as a convenience.
• Role of payments is a service similar to direct deposit, but instead of crediting the money in a bank account, the money is credited to the card, it will be available on the day of payment. This way you do not have to worry about being cashing checks and if you need cash, you can easily get from an ATM or ATM.
• Government benefits: Checks of benefits granted by the government are a thing of the past, since different government agencies have chosen to use the services of prepaid cards to pay benefits to the public.
• Medical expenses: You can associate a prepaid card to any of your health accounts, and thus pay for eligible medical expenses.
As you can see, the prepaid card is an alternative payment that makes managing your money, but does not replace the benefits of a bank account and credit card rather complement it, because the latter help you get established credit so you can later buy a house, a car, or finance your business.