Prepaid Credit Cards
Prepaid credit card was started in Canada. They are not similar to the original credit cards but they function in the same way. Unlike the ordinary credit card in a pre paid credit card you need to pay in advance to the company that owns the credit card. Your card thus gets charged and you can use it the same as you use the ordinary cards. Once the amount in the credit card diminishes to nil you can reload your card with fresh payments. It is also known as store value cards.
There are different types of prepaid cards available today. To name a few, you have the multipurpose credit card, non re loadable credit card, prepaid travel card, payroll card etc.
Multipurpose credit cards are those where the customer can continue to use the card for various purposes by reloading whenever required. They come as Visa and Master cards.
You can make use of these cards of all type of purchases in grocery, departmental stores, gas stations etc.
The non reload able credit cards are like the gift vouchers. You cannot reload cash onto these cards. They can be used for any type of purchases. But strictly they cannot be used in ATMís to withdraw money. These cards are usually given as gifts to others. It serves a lot of purpose. But you have a limit to the spending while using these cards.
Prepaid Travel Card is similar to the travelerís cheque. You can load huge amount of money which you need to carry while traveling. They come very handy because you donít have to carry a check and deposit and get back the money. You have instant access to anything you want to purchase with these cards.
Payroll credit cards are created for the benefit of the employers who need not carry cash. Their monthly pay will be loaded on to these cards and they can make use of these cards instead getting it as a check and getting delayed in making all payments. The terms and conditions are set by the employers. They can be used in ATMís to withdraw cash. This is very handy to the employers.
The prepaid credt cards are unique. They are most beneficial as you know how much to spend. You cannot send over the limit. You have thus control of your cash flow. This is unlike the ordinary card where you tend to spend extra and get into trouble later.
The other benefits of prepaid credit cards are, you have instant guaranteed approval with no need for a credit check or a security deposit. There will be zero percent activation fee involved if you load your card by direct deposit of cash. It helps you to avoid expensive money orders. There is absolutely no overdraft fee. There is no minimum balance required. You donít have to pay for your activation fee or pay monthly fees as in other cards. You can have instant and convenient access to your funds by making use of these prepaid credit cards. You have ability to make use of these cards in ATMís all over the world where Visa and Master cards are accepted
