What Is a Prepaid Card?
Prepaid cards can be described as reloadable debit cards. Available in either Visa or MasterCard, prepaid cards are often used to purchase items and services or withdraw cash from ATM machines. These reloadable debit cards are often used as an alternative to cash when shopping. Although pre paid cards act similar to a debit card, they are often referred to as prepaid credit cards.
How do Prepaid Cards Work?
Prepaid cards access money you deposit into a prepaid account, similar to how debit cards work with a checking account. Once you have money in your prepaid account, you can make purchases or withdraw cash using your pre paid card. Each time the card is used, the money is automatically taken out of your account until you add more money to the account or the balance reaches zero.
How to Add Money to a Prepaid Card?
There are two easy ways you can load money to your prepaid card: cash or direct deposit.
Direct deposit, which is the quickest and cheapest way to deposit money, allows your employer or benefits provider to deposit your paycheck directly into your prepaid account. With direct deposit, all or some of your check is automatically deposited into your prepaid account for free.
The second way to load money to your prepaid card is by cash. You can add cash to your prepaid account using money transfer services, such as MoneyGram, Western Union, and Green Dot. Money transfer locations can be found at most retail stores; however, there is a service charge involved.
Are Prepaid Cards Safe to Use?
Yes, that is why they are sometimes preferred over cash. Prepaid debit cards are secured by a secret code, called a PIN code. The PIN code protects anyone from using your card if it became lost or stolen. Additionally, most prepaid cards are protected against unauthorized charges in case someone manages to use your card without the PIN.
Prepaid credit cards don’t extend credit, making them safer to use than traditional credit cards. Plus, since you can only use the money you deposit, prepaid cards are safer than checking accounts because your prepaid account can’t overdraft.
Who Can Get a Prepaid Card?
Just about anyone can qualify for a prepaid card since ChexSystems and credit reports aren’t used like most banks and credit card companies. Nearly anyone over the age of 14 with valid a photo ID and mailing address can obtain a prepaid debit card.
Is a Prepaid Card Right for You?
Prepaid cards offer many benefits, making them right for just about anyone. Since you can only spend money available in your prepaid account, you can’t overdraft a prepaid card. This helps those with spending issues keep their habit under control. 
Prepaid cards also help build credit for those with flaws on their credit score. For parents, prepaid cards can help teach children how to manage money or they can be used to send money to a child living away from home for college. Some people just enjoy the ease and security prepaid cards provide them when handling their personal finances. Whatever the reason, a prepaid credit card is sure to be right for you.
What’s the Best Prepaid Card?
Finding the best prepaid card comes down to preference. Prepaid card providers offer different types fees, services, and features. Some of the features found on prepaid cards include: bill pay, SMS text alerts, credit build, short-term loans, savings accounts, etc. To find the best prepaid credit card, it is important to understand what each one offer and charges.
