The advantages and disadvantages of a prepaid credit card

The prepaid bank card is enjoying growing success. It is not backed by a bank account and allows you to pay for your purchases within the limits of a determined sum. If its users recognize many advantages to this type of card, it does however have certain disadvantages.

Notable benefits

Insofar as the card is prepaid, the bank cannot base itself on the state of your bank account to oppose you a refusal. The fact of knowing that you cannot spend more than the assigned credit à la carte represents a additional securityfor the bank and also for the merchant from whom you make your purchase.

As long as it is prepaid, this type of bank card cannot be refused, even to people in a situation of banking prohibition. The card is also accessible to everyone, without prior checks, in particular of your creditworthiness.

In addition, some cards are not nominative and are established without you needing to provide an identity document. This concern for discretion is found in the confidential management transactions carried out using the prepaid bank card. This confidentiality is all the better preserved as these operations are not linked to your bank account.

The ease of use is another advantage of the prepaid bank card. You can indeed obtain it from a bank branch, but you can also find it at tobacconists.

The sum to be entered on the card can be paid in cash, at the bank or merchant counter, or come from a transfer from your bank account. When the credit of the card is exhausted, it is enough to buy a top-up or coupons.

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This type of card also allows better secure your online purchases. With a classic card, hacking is always possible. By using a prepaid card, you can provide a credit corresponding to the amount of your purchase. In this way, you have no unpleasant surprises to fear.

The card can also be useful abroad. You avoid bank charges and any risk of blocking by your bank. In addition, if it is stolen from you, the thief will not be able to spend more than the amount of credit assigned to the card. In any case, he will have to enter a secret code to use it. Finally, as for a classic card, you can obtain the blocking of the prepaid card by calling a dedicated telephone number.

In the same vein, prepaid cards facilitate money transfers, including abroad. If the person you want to send money to has the same type of prepaid card, the transfer between the two cards will be free.

This prepaid card allows you to better control your expenses. As the card is blocked when the credit expires, it is easier to control your budget. Especially since, in this case, no overdraft is possible.

It should also be noted that the use of a prepaid bank card is not not subject to age conditions. It is also a good way to introduce children and teenagers to the handling of money. For them as for adults, the prepaid card can also become a popular gift.

By consulting the site, you will discover prepaid cards combining all these advantages.

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But some limitations

Even if the impossibility of spending more than the amount entered in the card has certain advantages, it can also pose some problems. This will be the case, for example, if you do not know the precise state of your credit. The moment of checkout or payment of the bill can then be tricky.

Furthermore, the use of a prepaid bank card generates certain costs, sometimes quite high. You must first purchase your card, although in some cases it may be free. Similarly, commissions are often charged each time money is deposited on the card or when you make withdrawals.

If we take into account all of these costs, we see that they are very often higher than those generated by a conventional bank card. It is therefore recommended to compare offers offered by banks. Each one sets the costs relating to the prepaid cards that it submits to its customers.

It can also happen, as with conventional bank cards, that some shops or restaurants refuse the prepaid card. Likewise, most gas stations do not accept them.

As the prepaid card is not backed by a bank account, it will not be considered as a sufficient guarantee during certain transactions. It may not be accepted, for example, to pay for the rental of a car.

Of course, the prepaid card does not allow payments to be made on credit. It is not possible, as with a conventional bank card, to postpone part of the payment by spreading it over several payments. In a way, you have to pay for your purchase immediately and in cash.

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What other bank cards are there?

The advantages and disadvantages of prepaid cards hold no secrets for you. Now, these are not the only types of bank cards that exist. You know at least the classic bank card, issued with your current account. However, it is not necessarily the one that best suits your needs. So, how do you know which are the best bank cards among all that is currently available on the market?

To answer this question, you will have to think about your needs and what is most important to you. You will see that you have a choice.

  • If you need to pay abroad, we recommend choosing a card that offers international transfers and does not charge you fees on your payments.
  • If you buy a lot on the internet, it is better to think about cards that offer attractive cashbacks.
  • If you want to have a secure payment abroad, which is not dependent on any political stability, in this case, you will need a card that allows the use of crypto-currencies such as Bitcoin.
  • If for you the environment is your priority, you also have cards made of recycled PVC.

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