Prepay cards are fast becoming the number one preferred payment medium for online transactions as well as offline purchases as well. The growth can be seen with the number of services it can offer or the number of usage of the cards for various areas like travel, online shopping, money transfer, and the likes.
Like most card products, there are known advantages and disadvantages of prepay cards. Not everything (like prepaid credit cards) can be satisfactory for everyone. There will be individuals who might find prepaid cards not that useful at all and some might find them to be the very thing that they have been looking for. Not everything can really satisfy what everybody wants and that should be expected because not all people are the same.
Some of the advantages of the prepaid cards are:
- It can be obtained without doing any background check unlike availing a credit card where there will be lots of background checking and necessary documents to secure and many other requirements you have to produce when the credit card provider asks for them
- You can set the limit by funding the card with the amount that you intend to use and you can budget your money this way; just don’t purchase outside of the card if you really want to monitor your expenses.
- It can function well just like an ordinary credit card without monthly bills, interests, or even the fear of unexpected purchases being credited to your card. The amount that you will be able to spend will be limited to the amount of the funds of the card.
There are also disadvantages of the prepaid cards and some are:
- You won’t be able to get some emergency funding to be put on credit in case a need arises. You can only rely on the amount that you have loaded unto the card and nothing else.
- If you are used to having a credit card and suddenly switched to prepaid card, you might find that your power to spend will be limited and you might feel annoyed.
Prepay cards can be availed through different providers and you will just need to choose the right provider for you that you think will be able to give you the most benefit. Not all cards can offer the same thing just like a credit card. The main difference between the credit card and a prepaid card is the spending power it can give you.
Find out more about the benefits of prepaid cards at Prepaid365