A prepaid visa card looks just like a regular credit card but is completely different. It is not backed by credit issued by an institution; instead, it is paid for with cash directly deposited into your account. A prepaid card enables you to purchase items using your own cash instead of borrowing from a lender and paying high interest and fees for the right to use a credit line. Although prepaid cards can be used anywhere a credit card is accepted, they are most commonly used in North America. The benefits are many and the convenience is unmatched.
Prepaid Visa debit cards are not tied to your bank accounts, which eliminates any possible overdraft fees or possible late fees. You can never overspend because if you do so, you will incur an additional prepaid fee. This prepaid service also removes the need for making any type of large purchases as you can simply make money on your purchases using an ATM card or a credit card.
Some prepaid cards may also include features such as travel miles, free accessories and bonuses. You will be limited in terms of how much you can buy once you have this kind of prepaid service. The Mastercard prepaid card and the Visa prepaid card both work on a monthly basis while the debit card is only good for purchases.
Most retailers who provide prepaid debit cards to consumers also give customers discounts on WalMart and Sam's Club products. The reason for this is that most people prefer these types of stores to other retailers when they want to buy some kind of product. Wal Mart and Sam's Club are well known brand names in the U.S. Consumers benefit from the discounts offered on these two popular brands.
There are also some additional fees that are related to WalMart and Sam's Club cards. On some of these cards, users are not allowed to exceed the credit limit. Also, users are charged for balance transfers if the balance of the card is exceeded. The fees associated with these kinds of cards are different from one country to another. For instance, if the fees are high in Canada, they might be different from those in the United States. Balance transfer fees and yearly fees are usually different between countries too.
With these kinds of prepaid options, you enjoy some financial benefits and a few perks along the way. However, you should know that you cannot use your credit or debit card to pay for everyday expenses. You can only withdraw cash using these kinds of cards. If you want to buy something using your credit or debit card, then you will be charged an interest rate for this transaction. With these kinds of protections, it would be good to use the prepaid option only for emergencies.
Another reason why people go for these types of prepaid services is to build credit. A prepaid visa card is just like having a regular credit card, but you do not have to pay monthly bills or make any kind of minimum deposit. It offers some of the same protections as regular credit cards, including annual fees, but you can avoid making the large deposit required to open up a regular account with a bank. The convenience of having all of your financial needs taken care of with just a prepaid visa card makes this type of service very appealing for people who want to improve their financial stability.
These kinds of cards are similar to prepaid debit cards without the added fee for balance transfers, but you do not need to pay an annual fee. The major difference is that you do not need to go through a lengthy application process to get approval for an unsecured card. Applying online is just one step in the process. If you are approved, you will be able to start using the card immediately. You will not have to worry about making payments on time or dealing with an over-limit fee. Prepaid debit cards offer convenience at a very low cost.