prepaid debit

Important Features To Know About Prepaid Cards

If you’re deciding whether a prepaid debit card is right for you, you may already know the basic advantages of owning one of these cards, as opposed to a traditional credit card – such as no credit approval, zero interest, and no late fees. However, you might not be aware that there are still many prepaid card companies that don’t offer certain types of protection that are covered by banks and credit card companies. When researching a company that offers prepaid cards, it’s important to keep these extra concerns in mind, and to be sure that the company you’re considering offers these services in addition to the basic benefits you’d get from owning a prepaid card.

Hidden Fees

Along with some banks and credit card companies, there are some prepaid cards that come with unexpected hidden fees. Some of these cards have more fees than the ones that would come with your usual bank charges, so it’s a good idea to find out about all the types of fees and extra charges a prepaid card comes with before signing up. Many of these fees come from non-network ATM charges, which can easily be avoided by only visiting the ATMs that are included in the card company’s network. Some card companies offer direct deposit, and usage fees may be waived by using this feature.

Fraud Protection And Insurance

In the past, many prepaid card companies weren’t as good as banks and credit card companies at protecting consumers from fraud. As banks and credit cards are becoming more competitive, prepaid card companies are stepping up. More of them are offering better protection than ever before. Research the card company you’re considering to find out how they protect their customers from fraud and theft. Go with a company that’s insured by the FDIC.

Other Benefits

As prepaid card companies are becoming more popular and sophisticated, there are an increasing amount of features and benefits that are being offered that make choosing a prepaid card a good decision. Some of these features include increased cash loading locations, 24/7 customer support, smartphone account access, and referral rewards. In addition to online account access, some companies will send text alerts when a customer’s funds drop to a certain amount, to protect them from overdraft charges. A few companies even provide the option to send money to the accounts of other customers who hold cards with the same company, and savings options with interest earnings.

For people who don’t have bank accounts, or who simply would prefer to have another card to load and save money onto, a prepaid card may be a good option. There are disadvantages to traditional credit cards, such as high interest rates, late fees, and the risk of developing bad credit if the credit card bill can’t be paid. Most, if not all, of these problems can be avoided by using a prepaid card instead. An increasing number of prepaid card companies are making this option even more attractive by offering features and benefits that previously only banks and credit card companies would offer. If you’re interested in finding out more about the advantages of prepaid cards over traditional credit cards, find out more on the KAIKU Visa Prepaid Debit website.