For the most part, traditional bank accounts are the most accepted banking choice all over the world. Still, there is an alternative payment tool that is quickly gaining popularity – the prepaid card.
Fundamentally, prepaid cards function in the same way that conventional debit cards work, but with a couple positive exceptions. The fee structures for prepaid cards are lower than their debit counterparts, especially with regards to maintenance and over draft fees. Prepaid cards are especially useful for those who wish to get a jump start on their financial security, and can be used anywhere debit and credit cards are accepted, such as brick and mortar retail transactions, direct deposit, ATM withdrawal and online.
Enjoying the Same Benefits
Just as with traditional bank accounts, you can have all or a just a percentage of your pay-cheque deposited directly into your prepaid card account. Direct deposit allows you to forego the hassles of bank lines or cheque cashing fees. As soon as your money is deposited into your card’s account, you can use it immediately to make purchases both online and in-store. Even more conveniently, you can use your prepaid card account with virtual wallets such as Google Wallet or PayPal.
Helping the Unbanked
Those that live in suburban and urban centres might accept traditional brick-and-mortar banks as the norm, but they are not universally available or accessible to all. It is important to consider the unbanked population, who still need access to financial instruments, payroll methods and payment solutions to help them improve their money managing skills. Prepaid cards are the most practical solution for underbanked populations everywhere.
One of the biggest benefits of using prepaid cards is that the user only has access to the amount of money you load onto it. This means there is no risk of a hacker or cyber-thief accessing your credit and doing untold damage. If the unfortunate event occurs where your card is stolen or lost, most prepaid card issuers are incredibly responsive, understanding, and quick to get your account functioning back to normal.
Anyone Can Get One
One’s credit score plays a crucial role in almost every account someone tries to open—credit cards,new bank accounts, loans, and on and on—seemingly everything, that is, except for prepaid cards.Prepaid card issuers do not require, and will not check, your credit score during the application process, which makes acquiring and using a prepaid card the ideal solution for those who may have a bad credit due to previous bankruptcy, poor financial planning, or other hardships. This particular trait is why so many unbanked and under banked opt for prepaid card accounts. Prepaid cards are extremely advantageous and is the perfect payment solution for all financial needs and uncertainties, especially for the unbanked.