There are many payment options available to consumers today. Amid the world of plastic money, two cards, which have a great similarity between them, are debit and co-branded prepaid cards. These two cards can often confuse users and make them uncertain about which one to opt for. If you are facing a similar dilemma, keep reading to discover some facts about both of these cards:
So, you may exploit them worldwide and they may be cancelled when stolen or lost with ease. However, their logos make them distinct. This article addresses those concerns to make selection for you easier.
Is There A Credit Check? Customers are not charged with any credit check before the issuance of prepaid cards. However, credit checks are performed by the banks for debit cards to verify customer's credit score and ratings before they issue them.
Do They Charge Interest Fees? There is no interest involved in prepaid cards as users are not allowed to borrow money. However, debit cards charge these interest fees for overdue overdrafts and there is no interest-free period.
Card Charges Prepaid credit cards are often charged with a small opening fees or maintenance charges, especially in cases of co-branded prepaid cards. On the other hand, debit cards with be charged with any fees applicable to the bank account, as well as any penalty fees applied to overdrafts that have become overdue.
Paying Your Interest You will not be allowed to borrow money off your prepaid cards. Do the math and you will know that they will, as a result of this, not be having any interest for you to pay. The debit cards, in their dissimilarity, make a point of charging interest with zero interest-free periods if the person has managed to achieve their overdue overdrafts.
Can These be Used at ATMs? At the ATMs, a debit card can be used but a prepaid card can't. There are really few prepaid cards that provide users the facility to withdraw cash from an ATM. In conclusion, prepaid and debit cards have their similarities and differences.
Most of the people are likely to find the debit cards more appealing for the fact that they have an overdraft facility even as they agree to let them withdraw the required amount from their account only.
Debit cards are a good option for those individuals who already have bank accounts and will not be tempted to exceed their expenditure limits. However, for teenagers who do not have bank accounts and will be tempted to take loan, co-branded prepaid cards are the best option. So make the right selection today in accordance to your needs!
So, you may exploit them worldwide and they may be cancelled when stolen or lost with ease. However, their logos make them distinct. This article addresses those concerns to make selection for you easier.
Is There A Credit Check? Customers are not charged with any credit check before the issuance of prepaid cards. However, credit checks are performed by the banks for debit cards to verify customer's credit score and ratings before they issue them.
Do They Charge Interest Fees? There is no interest involved in prepaid cards as users are not allowed to borrow money. However, debit cards charge these interest fees for overdue overdrafts and there is no interest-free period.
Card Charges Prepaid credit cards are often charged with a small opening fees or maintenance charges, especially in cases of co-branded prepaid cards. On the other hand, debit cards with be charged with any fees applicable to the bank account, as well as any penalty fees applied to overdrafts that have become overdue.
Paying Your Interest You will not be allowed to borrow money off your prepaid cards. Do the math and you will know that they will, as a result of this, not be having any interest for you to pay. The debit cards, in their dissimilarity, make a point of charging interest with zero interest-free periods if the person has managed to achieve their overdue overdrafts.
Can These be Used at ATMs? At the ATMs, a debit card can be used but a prepaid card can't. There are really few prepaid cards that provide users the facility to withdraw cash from an ATM. In conclusion, prepaid and debit cards have their similarities and differences.
Most of the people are likely to find the debit cards more appealing for the fact that they have an overdraft facility even as they agree to let them withdraw the required amount from their account only.
Debit cards are a good option for those individuals who already have bank accounts and will not be tempted to exceed their expenditure limits. However, for teenagers who do not have bank accounts and will be tempted to take loan, co-branded prepaid cards are the best option. So make the right selection today in accordance to your needs!
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Conclusively, co-branded prepaid cards are ideal for people who do not have bank accounts so far and will obviously take to a loan to fulfill their needs. Others maintaining an account already and not wanting to exceed their limits can simply go ahead in opting for VISA card program and debit cards. Be sure to act wisely.. Check here for free reprint license: Prepaid Cards Or Debit Cards - Which One To Select?.
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