Prepaid cards are the talk of the town! Everyone has a card now. With so much buzz around them, you must be wondering if prepaid cards offer card safety. Are they safer than cash? Well, do not bother! In this blog, we are going to discuss whether it is safe and useful to use prepaid cards or not. Also, you will know about the uses of prepaid cards.
So, keep reading!
To answer your question quickly, prepaid cards, as a method of payment, are safe, reliable, convenient to carry, and a good way to track your finances. They can be used in both international and domestic markets. Also, they are much more secure and much more useful than cash.
What are prepaid cards? What are prepaid card uses? Let us have a quick look at it.
Table of contents:
- Introduction
- What is a Prepaid Card?
- What Are The Features Of a Prepaid Card?
- What Are The Types of Prepaid Cards?
- Why Are Prepaid Cards Safer Than Cash?
- How Do Prepaid Cards Work?
- What are the uses of Prepaid Cards?
- Conclusion
- Frequently Asked Questions (FAQs)
What Is A Prepaid Card?
Prepaid cards are also known as ‘ Pay as you go cards’, ‘stored value cards’, and ‘Prepaid debit cards’. A prepaid card is a card that you purchase and then use to make purchases. You are required to load your card with money. Then you are free to spend as much as your limit allows you to!
When your card gets empty, you can reload it again online, at a store, or at an ATM. Authorized banks issue prepaid cards, and some of the most reputed companies then brand them. All in all, prepaid cards are a good option other than cash. They are safe, secure, reliable, and a good way of managing finances.
Further in this blog, we are going to discuss the features of prepaid cards! After reading the features, you will get an idea of how important they are!
What Are The Features Of Prepaid Cards?
Fab Money Prepaid cards are feature-packed! The following are some of the features of prepaid cards.
- Unlimited rewards at your city favourites: Enjoy the city you love with rewards and cashback at your favourite restaurants and stores. Indulge in exclusive deals that make every outing unforgettable.
- Reload Option: You need to load the prepaid cards with money to use them. But what are the ways you can reload your prepaid card? You get multiple options to fill up your prepaid card, such as through any ATM, online, direct deposits, etc. Also, you can reload your prepaid card using your mobile phone as well.
- Expiry Dates: Prepaid cards have an expiration date. They expire after some time, but don’t worry; your amount stays intact. After your card expires, you need to apply for a reissued prepaid card to make transactions.
- Amount Limit: Some prepaid cards come with a limit on the amount. That means you have some amount of foundation regarding reloading, withdrawal, and spending for a particular period.
What Are The Types Of Prepaid Cards?
There are three types of prepaid cards. They are as follows:
1. Payroll Cards:
Just as the name suggests, loaded prepaid cards are issued to the employees instead of paychecks. In simple words, the employees receive their salary in the form of prepaid cards. Then, they are free to use the cards the way they want.
2. Gift Cards:
The gift cards come in some particular denominations, like Amazon, and are mostly used for gifting purposes. However, these cards are not reloadable, which means you cannot fill the card again after using it.
3. General Purpose Cards:
These are the most basic cards that most people use. You need to load this card with money, and then you are free to use it the way you want. They have an expiration date; after the expiry of the card, you are required to reissue the card to use it.
Why Are Prepaid Cards Safer Than Cash?
Prepaid cards provide a way to have access to money without needing to carry a wallet with you. People do not need to carry cash every time they wish to buy something; instead, they can carry a card to make all the transactions. Also, prepaid cards are much safer than cash in terms of management. The chances of theft in cash are much higher than in cards.
Now, the consumers whose card gets stolen or lost can report the same, and they are entitled to the investigation of their claim. They also receive repayment for the unauthorized charges. To take full advantage of card safety, you must get your prepaid card registered at the time of purchase.
Moreover, prepaid cards are more secure than cash and debit cards. They are protected with a PIN, and you are not allowed to withdraw the amount without entering the PIN. All in all, having a prepaid card is like having money with you all the time in a small rectangular card. Also, if you lose your card, you can ask for another card, and don’t worry; your balance won’t be affected.
How Do Prepaid Cards Work?
Prepaid cards are available at convenience stores, supermarkets, and various other outlets. Also, you can purchase them directly from the companies. As no credit is involved, you can spend only up to the amount that is available on the card.
However, credit history has nothing to do with the prepaid card. A bad credit history does not reduce the chances of getting a prepaid card, nor does a good credit history.
To use the card, you are required to load the card with some money through direct deposit, ATM deposit, or online. After loading the card, you can use it to make transactions, pay bills at different places, and withdraw amounts just like the debit and credit cards.
And you know what? Various companies that offer prepaid cards also provide an application using which you can keep track of your spending and balance. When your prepaid account balance gets empty, you have the option of reloading the card with more money.
Moreover, you do not need to have a bank account to get a prepaid card. This is the sole reason it is used by most adults who do not have a bank account. Most importantly, having at least one card in your wallet is a must in this digital world where people prefer cashless transactions.
What Are The Uses Of Prepaid Cards?
Most prepaid cards use is they are secure and convenient. But other than these reasons, fab money prepaid cards have a lot more to offer. The following are the reasons why they are preferred by many and are a good choice!
- You can use your Fab Money prepaid card to use it abroad without having to withdraw money and use it for currency exchange or carrying large sums of cash.
- You can get assured 1% cashback on every transaction with Fab Money Dreams Card. As you go about your daily purchases, watch your savings grow effortlessly.
- Experience all the perks of the Fab Money Dreams Card without any joining fees. It’s a card that truly puts your financial well-being first.
- You do not have to worry about carrying your cash every time you go out, as you can pay using your prepaid card only.
- Fab Money Prepaid cards can also be sent securely as gifts to your loved ones.
- They come with a transaction limit, so you can avoid overspending easily.
Conclusion
To conclude, the uses of prepaid cards outweigh the advantages of cash. The prepaid card offers security, convenience, and other benefits. You can also use them to keep track of your spending. Whereas with cash, you can not do any such thing. Prepaid cards offer card safety and are a safe option for making payments, and they minimize the risk of theft and loss. So, it is always a safer option than cash.
But every coin has two sides; that is the reason you must pay attention to the limitations of prepaid cards and the fees associated with them. The choice is yours, but prepaid cards are better and a more practical option in today’s world.
Frequently Asked Questions ( FAQs)
1. Why Should You Use A Prepaid Card?
Prepaid cards are a good way to stay out of debt, limit your spending, keep track of your money, and for budgeting purposes. Also, they are a secure payment option. So, using them is always a win-win. You can load the amount and use it wisely.
2. What Is a Drawback Of a Prepaid Card?
Prepaid cards are perfect, but not everything is 100% perfect. Some of the drawbacks are as follows: Customers are charged some fees ( transaction fee, ATM fee, activation fee) when they buy the card.
3. Can You Withdraw Cash From The Prepaid Cards?
Yes, you can withdraw cash using your prepaid cards. For that, you need to enter the PIN that was assigned to you when you bought the card. After entering the PIN, you can easily get the cash.
References:
https://fab-global.com/our-network/fab-money-india/
https://www.capitalone.com/learn-grow/money-management/how-do-prepaid-debit-cards-work/
