Along with the other forms of debit cards, the popularity of the prepaid credit cards has risen over time. But there are some controversies surrounding these cards.
For newbies who may be unfamiliar with prepaid cards, they are the kind of debit cards that are associated to a savings account. This means, you must have a bank account in order to enjoy the use of these cards.
Looking into some of the controversies, there are concerns coming from some quarters who are worried that illegal entities will exploit these cards to put some legitimacy on their otherwise illegal activities or presence in the country.
When you decide to open your card with the savings account, check deposits can be sent to the account and then withdrawn from using the card. The banks who issue these types of cards charge the account holder fees that are similar to check charges.
Since these universal prepaid credit cards bear the logo of either Visa or MasterCard and is associated with a real, existing bank account, then the card is accepted as an identification card of the cardholder in several places. The problem is since these accounts are tied with a savings account, some of the issuing banks may not have thoroughly or carefully verified the identity of the cardholder.
Regardless of the controversy, there are many advantages that you can get from such a card. This is especially true for individuals who may have the need to send money abroad or receive money from. The process is simple and fast.
Prepaid credit cards are also readily and easily accessible. You can use it to pay for goods or services in any point of sale that bears the logo. The cards may also have the same functions as the ATMs, where you can withdraw money from at any compatible ATM terminals.
If you happen to have children across cities, you can empower and control his/her spending habits by loading just the right amount into the card. And since the card is reloadable, in case he/she needs emergency cash, you can immediately fund the card and in as quick as the same time you have reloaded, the cash is made available to your child.
Nowadays, living has reached that certain point where you must have some form of plastic – debit or credit card. If at one point in your life, you may have to deal with bad credit for whatever reason, you will find solace and a second life in prepaid credit cards. Most often, the issuing banks will no longer subject someone to credit check prior to approval of the account. Aside from getting a lease of life, you also get the chance to rebuild your credit credibility so the next time you may find it necessary to get a regular charge card, your chances of getting approved will increase.
Just a reminder, before you decide to avail of prepaid debit cards, you must have carefully weighed your options and use the card accordingly.