Prepaid Cards: What Makes Them So Powerful?
During the 70s, cash was considered king. A decade after, checks were introduced. Nowadays, purchase and withdrawal transactions using a credit, debit, or prepaid card has become more or less commonplace.
While the popularity of today’s plastic cards is unprecedented, it’s not at all surprising if we take into account the many unbeatable benefits a debit, credit, and prepaid card offers.
However, while credit cards have enticing benefits that are hard to resist, they also have major downsides that are hard to ignore. For starters, you can end up paying exorbitant fees and interest rates if you are not careful with your credit card usage. In addition, most credit cards have annual fees that you have to pay for.
Fortunately, there is a way for you to enjoy many of the amazing benefits associated with credit cards minus all the hefty benefits and fees. Over the years, many people have realised that prepaid cards actually make wonderful alternatives to credit cards.
According to a study conducted by the Synergistics Research Corporation on the prepaid market, more than half of all Americans got themselves a prepaid card for personal use. That’s a 19 percent increase compared to 2008.
With the way things are going, the increase in prepaid card use has shown no signs of slowing down. This is especially true since many issuers are already offering attractive promos and incentives for those who use their prepaid cards.
So what exactly makes prepaid cards very powerful in today’s financial market? If truth be told, it’s potency can be attributed to the many peerless benefits they offer. For instance:
They help users curb overspending.
When using a credit card, it’s easy to overspend since it would seem like you are not spending your own money. Not only that, if you are not careful, you’d end up dealing with mounting interests before you know it. With prepaid cards however, you only spend the balance that’s available on the card. In other words, you are spared from the risk of spending more than you can actually afford and paying those exorbitant interests and fees to boot.
They are considered safer to carry than cash.
One of the many reasons travellers love prepaid cards is they are safer to carry than physical cash. And since prepaid cards are not linked to any personal and financial data like bank accounts or security numbers, you are also spared from the risks of having any of your important personal and financial information compromised.
They are amazing alternatives for people with poor credit.
Individuals with poor credits are often not granted credit cards. Fortunately, getting a prepaid card won’t be as hard even if your credit standing is not exactly stellar. In addition, you are also spared from those tedious and time-consuming process often associated with credit card applications.
They can be easily used for more than just payment transactions.
Contrary to popular belief, prepaid cards can be used for more than just card-based transactions. The truth is prepaid cards can also be used to withdraw cash from ATMs, pay bills online, and in some cases, schedule recurring monthly payments.