Over the years, the world has become more and more connected. That said, using plastic cards in one’s day to day transactions has become quite common. For instance, transactions that only require cash payments before like hotel reservations, car rentals and other payment of utility bills can now be done using another means.
Enter the innovative reloadable prepaid cards. Reloadable prepaid cards are the latest addition to the plastic card family. The first few plastic cards that were introduced include credit and debit cards. If you are like most people you most likely have heard of reloadable prepaid cards. It is also likely that you even own one.
However, just like most people, it is also likely that you don’t know all the basics about this amazing tool. Fortunately, you have come to the right place. This article will contain all the basics you need to know about this beneficial and powerful financial tool. That said, here’s your fast and easy guide to reloadable prepaid cards:
The Lowdown on Reloadable Prepaid Cards
Reloadable prepaid cards share many surface similarities with credit and debit cards that it is very easy to mistake one for the other. However, while they look very similar on the surface, reloadable prepaid cards have a distinct feature that makes them stand out from the other two—they are not linked to any bank accounts.
As the name implies, reloadable prepaid cards can be loaded with money repeatedly. If anything, you need to load money onto the card before you can use it for ATM withdrawals or purchase transactions. Unlike credit cards, reloadable prepaid cards don’t come with any credit capabilities and cannot be used if they have no balance.
In the event that the balance on the card has been consumed or depleted, the card is considered empty until such time that you load money onto the card again. Essentially, you will be using your own money with a reloadable prepaid card rather than “borrowing” money from the card issuer or provider.
This also means that each time you use your card for purchase transactions, the amount will be directly deducted from the balance that’s available on your card. If the balance will not sufficiently cover the amount needed for a purchase, your transaction will be declined.
The good thing is you can use the card right away once you have loaded money onto the card again. Amazingly, loading money onto your reloadable prepaid card is as easy as can be. You also have the option to load as many times as you like and as much as you want.
As reloadable cards became more loved, various types were introduced to cater to the different needs of consumers. Case in point: general purpose cards or GPRs were introduced to cater to the unbanked or underbanked. Payroll cards, employee incentive cards, and government benefits cards have also become widely used.
Nowadays, many government agencies and organisations are using reloadable prepaid cards to give out salaries, incentives, and bonuses instead of the conventional options like direct deposit payments and checks. Aside from being the ideal tool for those who don’t have access to banks, reloadable prepaid cards also offer peerless benefits.
For starters, when you get a reloadable prepaid card, you are spared from all the hassles and stress of getting one. No pesky background checks. There is also no need for you to submit financial and personal documents and wait for so long just for your application to be approved. Getting a reloadable prepaid card is as straightforward as can be.