The Lowdown on Reloadable Debit Cards
If you are one of the many who are looking for a new and effective way to manage money but don’t have access to a bank account, you’d be delighted to know a reloadable debit card can be a wonderful alternative.
Reloadable Prepaid Cards Simplified
Simply put, a reloadable debit card is an alternative card that allows cardholders to spend money that’s available on the card. Just like a credit card, reloadable debit cards can be used at merchant networks that honours cards branded by huge financial institutions.
Understandably, compared to using and physically carrying around huge amounts of cash, using a reloadable prepaid debit card instead is considered safer and more practical. Sometimes referred to as pay-as-you-go cards or general purpose reloadable cards, prepaid debit cards have become the preferred choice of many people nowadays.
Also, unlike credit cards, you don’t get to “borrow” money from the card issuer when you use a prepaid debit card. In other words, you are limited to the amount of money that’s available on the card.
The good thing is prepaid debit cards give users the option to link their cards to a checking account so it becomes a lot easier for them to do online transfers.
How Reloadable Prepaid Cards Work
While there are several reloadable prepaid cards in the market to choose from, they often share many identical features. For instance:
- ATM Access
Most of the reloadable prepaid cards nowadays give users access to a wide range of ATM networks nationwide. If the prepaid card is issued by a bank, they can typically be used at branded networks.
- Reload Options
In most cases, reloadable prepaid card users have several options in terms of loading money onto the card. For starters, they can load cash using direct deposits, by depositing checks at ATMs, etc. Other reloadable prepaid cards also give users the option to do online transfers or mobile check deposits.
- Expiration Dates
Most of the reloadable prepaid cards available in the market nowadays come with expiration dates. However, in most cases, users are provided a new card once the old one expires. The available balance on the card however has no expiration.
Some reloadable prepaid cards will require a fee for deposits, usage of out-of-network ATMs, and even card activation. Some reloadable prepaid card issuers waive the monthly fee while others don’t. In addition, some reloadable prepaid cards will charge fees for ATM withdrawals as well as purchase transactions.
- Other Features
Aside from all the enticing benefits and innovative characteristics reloadable prepaid cards are known for, they also come with other amazing benefits that are hard to miss. While not everyone may be aware of it, reloadable prepaid cards can be used for check writing and online bill payments.
In addition, some reloadable prepaid card issuers also offer similar rewards often associated with credit cards in an effort to keep loyal customers happy and lure new prospects in. One reward many reloadable prepaid card issuers offer that many people love is cashback on purchases.