Credit cards have long been the payment of choice of many shoppers. It provides convenience, security, as well as flexibility. It is the sensible go-to option for making purchases in person or online. But for some consumers, access to a credit card is not possible. There might be limitations or restrictions that prohibit them from meeting the criteria of being granted a credit card.
Here comes the prepaid visa card. These cards are credit cards with the well-known logo of MasterCard or Visa. But the balance of these cards is predetermined by the card owner through prepayment. The cards can be utilised everywhere traditional credit cards are accepted, such as ATMs, restaurants, and shops. There are several ways consumers benefit from prepaid cards that will be discussed in this article.
Availability
For individuals with a poor credit score or an inadequate credit history, a prepaid visa card is ideal for cashless payments. To be issued a credit card, one needs to fill up an application and have their credit history checked by the bank to determine whether they are an ideal candidate to get a card. Prepaid cards have no such requirements. It is available to every consumer over 18, no matter their background. It gives people the chance to own a Visa or MasterCard. Because these cards are prepaid, there is less risk of running past limits and being charged high fees. There is also no risk to the issuer that holders will fail to make payments.
Convenience
Similar to credit cards, prepaid cards are accepted worldwide. It enables consumers to shop and pay swiftly and efficiently via a swipe of a card. They can even shop online from the comfort of their home or smartphone at any time of the day. For travellers, they don’t have to be hassled about currency exchanges and protecting vast amounts of cash in a travel pouch.
Security
Prepaid cards are just like cash but with added layers of security. Once the balance has been sent by applying cash to the cardholder, it is protected from every risk, including loss and theft. In the case of fraudulent charges, the holder can report the event to their card company to investigate and refund them. Cardholders have the assurance that their cash is protected with a prepaid card.
Ease of use
A majority of people now have a good understanding of how to utilise a credit card. Adopting a prepaid card is not so different and is used in the same way. Most issuers can simply advance the balance, which is done via transfer funds from the bank account to the card. After this, the cardholder can safely and efficiently shop anywhere credit cards are accepted.
Budget-friendly
It can be challenging to track purchases against a budget. Prepaid cards make tracking a budget more effortless. Since there is no credit line, the balance is always contingent on the prepayment. Holders don’t have to be worried about going into debt or paying fees after running past their limit.
Pay Your Bills
Driving or walking to utility companies to pay bills can be a hassle. Many people will even have to mark their calendars on these due dates. Aside from the time and energy required to make utility payments, there may be instances you completely forget your due date. Most prepaid cards allow automatic payments for various bills such as utilities, car notes, mortgage payments, and many others.
Prepaid cards help you shop smart. The credit limit in traditional credit cards may be too much of a temptation. You may find yourself spending beyond what you can pay. Prepaid cards are excellent since you will only be spending the cash you have. But you will also get the perks and security traditional credit cards to offer.
Author bio: Hannah Gilbert is a freelance writer who offers to ghostwrite, copywriting, and blogging services. She works closely with B2C and B2B businesses providing digital marketing content that gains social media attention and increases their search engine visibility.