As authorities in the field of commerce, realized and understood the fact that people have different needs in terms of making purchases, they came up with the idea of introducing different type of payment cards. Each card introduced was distinctive in its function and was suitable for people having specific purchasing preferences. These cards included prepaid, credit, and debit card programs.
All of these cards have similar issuance and cancellation policies. However, when it comes to their functionality, they have different features that make them beneficial in their own way.
Many people associate prepaid card programs with that of credit cards. When in actuality, these are more like debit card programs, where cardholders are allowed to use their own money only. They cannot borrow any amount from the bank or any other authority to pay for their bills.
However, there is one major difference between prepaid cards and debit card program and that is: in order to use a debit card, users must have an active account in a bank. On the other hand, for those using prepaid cards, they don't need bank accounts. Rather, a virtual account is enough to proceed.
However, there is one major difference between a prepaid card and a debit card program. In order to avail a prepaid card, it is not compulsory to have a real bank account as you can proceed with a virtual one as well. But in order to use a debit card, it is mandatory to have an active account in a certified bank.
But all the features of a prepaid card are not similar to that of debit card programs. Contrary to debit cards, prepaid cards do not demand the user to have a real bank account; rather, a virtual account is enough to use this card.
Since banks are not always involved in the issuance of a prepaid card, it can be availed from a retail store as well. Most stores tend to issue these cards for the sake of marketing their brand.
Since prepaid cards offer no credit, it automatically saves you from the worries of debt and high interest rates.
No credit automatically means that no money will be deducted from your savings as interest.
No credit can be availed via these cards, which eventually saves you from the burden of debts. Plus, no credit automatically means no deduction of interest from your savings.
These cards additionally bring travel benefits and can be used around the world, which means that by using them, you will be free from worries about finding ATMs or carrying cash on trips.
MasterCard and Visa prepaid cards are recognized and acceptable worldwide. Thus, despite the pros that favor debit card programs, prepaid cards remain a worthwhile option for people who want a convenient means to use their money for transactions.
All of these cards have similar issuance and cancellation policies. However, when it comes to their functionality, they have different features that make them beneficial in their own way.
Many people associate prepaid card programs with that of credit cards. When in actuality, these are more like debit card programs, where cardholders are allowed to use their own money only. They cannot borrow any amount from the bank or any other authority to pay for their bills.
However, there is one major difference between prepaid cards and debit card program and that is: in order to use a debit card, users must have an active account in a bank. On the other hand, for those using prepaid cards, they don't need bank accounts. Rather, a virtual account is enough to proceed.
However, there is one major difference between a prepaid card and a debit card program. In order to avail a prepaid card, it is not compulsory to have a real bank account as you can proceed with a virtual one as well. But in order to use a debit card, it is mandatory to have an active account in a certified bank.
But all the features of a prepaid card are not similar to that of debit card programs. Contrary to debit cards, prepaid cards do not demand the user to have a real bank account; rather, a virtual account is enough to use this card.
Since banks are not always involved in the issuance of a prepaid card, it can be availed from a retail store as well. Most stores tend to issue these cards for the sake of marketing their brand.
Since prepaid cards offer no credit, it automatically saves you from the worries of debt and high interest rates.
No credit automatically means that no money will be deducted from your savings as interest.
No credit can be availed via these cards, which eventually saves you from the burden of debts. Plus, no credit automatically means no deduction of interest from your savings.
These cards additionally bring travel benefits and can be used around the world, which means that by using them, you will be free from worries about finding ATMs or carrying cash on trips.
MasterCard and Visa prepaid cards are recognized and acceptable worldwide. Thus, despite the pros that favor debit card programs, prepaid cards remain a worthwhile option for people who want a convenient means to use their money for transactions.
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Finally, think of how the VISA prepaid cards and MasterCard are accessible conveniently and globally. This is exactly why debit card program is a little less favorable among the cardholders.
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