10 Dec 2020
The world is a global village and being enormously connected with a digital network spread across the globe.
Besides other routine cores, your money transactions, payments, and cash transfers have been accommodated in quite a smart way in today’s digital era, incorporation with the economic agencies of particular countries.
These Companies often brag about the needs that can be fulfilled and benefits that could be gain from Prepaid cards.
But do you have any idea about what exactly cannot be made using a prepaid card that you own? if No! keep reading because we have the answer to this simple query.
A prepaid card is a virtual electronically produced hard card that is often delivered automatically upon opening a bank account or through a separate registration for the prepaid card in agencies.
Our readers should be aware that we may be using the word ‘Debit card’ instead of a prepaid card at some places because both terms can be used as alternatively (an exception to few cases).
You can register for the prepaid card which is also called a debit card while registering for the bank account, and after the opening of the bank account, you may receive your debit card in a few days.
This plastic card will be activated by you by simply following a few steps according to the guidelines of the bank. This may involve the use of 16 digits card number, security code, your NIC number, and some other details before you are ready to make a payment with it.
Once you are done, you can spend as much money through your debit card as loaded on your card or have it in your bank account. Once you utilize all your money in the linked bank account, you won’t be able to use the card for anymore off-payments, and you have to recharge the card for using it again for the service.
If you have an account with the bank who offers debit cards to their users, then automatically you will get a prepaid card to be utilized. This might be an excellent alternative to the assigned chequebooks, which are given later to users depending upon the availability of good credits in their account (exceptions to some conditions).
Moreover, there is no age limit, education status, or other documentation necessary to attain a prepaid card. Even children, college students, parents, and workers of any status from daily wage earners to big businessman can open their bank accounts with necessary obligations of documents and attain a prepaid card if they have enough cash in their bank accounts to be used for payments like books, foods, or another ongoing expense.
Prepaid card is indeed the best option for people who have a bad credit issue, due to which they don’t get a chequebook, or who do not have a credit card to manage their payments later on. A prepaid card helps them to manage their budgets quite effectively.
Before getting into the details of what cannot be done with a prepaid card, you first need to understand what can be done with it. So, let’s have a quick review of it. A virtual prepaid card can be used for varies purposes such as:
You can use your digital prepaid cards to make secure payments without submitting your debit card, credit card, or any bank account details during payments.
Additionally, these virtual cards will enable you to load them separately without linking them to your bank accounts to avoid any Kind of Trust Issues, Or to Avoid Any Fraudulent Practices.
You can use your prepaid card to effectively manage your budgets because it limits you to use only the credit being charged on the card and restricts any extra Expenditure and getting carry away with excessive bills as in the case of credit cards.
Virtual prepaid cards benefit you in another way by allowing you to make transactions wherever you are and however you like to. Depending upon the accessibility within the country having the bank accounts with which your debit card is linked. However, the debit card may not work outside the country where the merged banks are not operating.
Besides the ease of transactions, currency feasibility, fast payments, and effective budget management, some services cannot be dealt with a prepaid card. You might need a credit card or chequebooks for it. Let’s review what these off-limits to prepaid cards are
Prepaid Cards Cannot Be Used for Borrowing Money
Since the service provider doesn’t look into your credit history while assigning a prepaid card to you, because the debit card has nothing to do with borrowing money or repayments, thus, this means that you cannot build, or improve your credits through prepaid cards.
Linked to the previous point, since the prepaid card has nothing to do with your borrowing or repayment habits, thus the card issuance companies or banks cannot report any such matter with the credit bureaus or banks where your account is held. In short, a prepaid card cannot affect your credit card score positively or negatively.
Prepaid cards are way different than credit cards in which your depots an amount before or after the use of any amount because that only requires a credit refill later on, however, in the case of a debit or prepaid card you need to have a balance loaded in your card to make any successful ongoing payments.
As elaborated earlier, any kinds of rentals or borrowing cannot merely be made with your prepaid cards. You need to have a sound enough balance to make a purchase, book an automobile, or pay off for any other kind of ongoing transactions.
Even the car rental companies do not allow people to use prepaid cards for car rental services, owing to the consequences they have to bear with such payments. You can either use your credit cards or chequebook for the car rental purposes if you have the required amount present in your bank accounts.
Prepaid cards have mostly an annual or monthly fee attached to their usage, depending upon the type of card and the company with which you associate.
And the payments through prepaid cards cannot merely be made if you do not comply with the fulfilment of prepaid card fees as per the terms and conditions of any particular prepaid card service.
Not all type of prepaid cards in the world needs to come along with the benefit of currency flexibility. i.e. payments in some foreign currency when in need. This exchange service varies from company to company and from country to country, so mind the details of currency nature before availing of the prepaid service of any agency.
Though you can use your prepaid card to carry out ATM transactions but keep in mind that you may be charged for those transactions according to the rules of prepaid card and the associated company, these rules are exceptional for those conditions in which your ATM itself works as a prepaid card.
Any online purchases, rental services, hotel bookings, or transactions can be made with your prepaid card on just one condition, i.e. you have enough load on your prepaid card to pursue such large transactions.
But in the opposite case if your card is not prepared for the large payments, then your request for bill payments will be averted by the service providers.
Although companies do offer protection and security measures in events of loss or theft of prepaid cards but must keep in mind that no such protections are made by any federal or state legislation of any country, so, you can claim any protective measure or safety policy through your linked companies for the reimbursement of your loss.
Prepaid cards, debit, or credit cards all come with some specifications and detailed user benefits attached to them. But to bring the most out of them, you need to understand what can be made with what kind of cards.
Prepaid cards can be understood in layman terms of *PREPARE YOU CARD* which means that you can do all types of transactions depending upon the load you have prepared in your debit card.
One must consider the specific features that are introduced by different companies for their prepaid card. This means that the same rules and regulations don’t need to be followed throughout the world about prepaid cards-based transactions.
So we recommend you to take assistance from our team at ACE money Transfer to know more about prepaid card related information in your home town.