Apart from debit and credit cards, there’s another kind of plastic card that has become very popular lately—the reloadable prepaid card. While most plastic cards offer peerless ease and convenience and allow cashless transactions, reloadable prepaid cards are in a league all their own.
Statistics have shown that more and more people have been using prepaid cards in their day-to-day transactions. In fact, research provided by the Mercator Advisory Group last 2010 indicated that a whopping $40.85 billion was loaded onto prepaid cards. The figure alone is a testament that reloadable prepaid cards have truly come a long way.
Loading money onto a reloadable prepaid card is easy and straightforward. Some of the most common methods of loading money onto a prepaid card include direct deposits, bank transfers, and secure online portals.
Aside from the many reloading options available, there are a lot of other interesting things about reloadable prepaid cards that not many people know about. For instance:
It offers special perks and freebies
Many prepaid card companies provide discounts, freebies, and other special offers to entice potential customers. Some of these benefits are more commonly offered to users of credit cards.
For instance, some offer freebies and perks that include 90-day protection for broken, stolen, or lost items purchased using the reloadable prepaid card. Others issuers also provide medical and legal aid for frequent users and travellers, alongside discounts on popular brands.
It can provide some of the consumer protection given by other cards
This is somehow related to the first point mentioned above. Many who are not qualified to get a credit card have opted to get a reloadable prepaid card instead. Why? While reloadable prepaid cards don’t offer all the consumer protection provided by credit cards, there are still a few of them that are being offered.
It can have varying fees
While many people are now using reloadable prepaid cards, not many are very well versed with the corresponding fees they will be charged for transactions using their cards.
In line with this, consider it best to check with the issuer what the corresponding fees are, from activation, to purchase fees, and balance inquiry charges if any. The good news is many reloadable prepaid card issuers do not charge their cardholders for any transactions done using the card.
It will only require basic personal information during application
Those who will apply for debit or credit cards are often required to provide not just substantial personal information but also a lot of financial documents. Thankfully, when it comes to reloadable prepaid cards, you only need to provide basic personal information and you’re good to go.
In most cases, you are only required to provide the most basic of information like your name, address, and contact number. This also means you are spared from having all those hassles often associated with bank applications.
Also, if you are very particular about your privacy, you’d be delighted to know that you don’t risk compromising any important personal information when applying for a reloadable prepaid card since you’ll only be providing the basics.