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Prepaid Card Or Debit Card – Selecting The Best.

Posted on 27. Apr, 2018 by Barbara Divine in Online Business

With regard to the payment options available to customers today, there are many. People can either use cash or plastic money to pay for their bills and purchases. However, many prefer to opt for plastic money over cash as it is safer and more convenient to carry and use.

Since the usage as well as the cancellation policies of all of these cards is quite similar, most people end up mixing the basic functional features of the cards.

In order to highlight the basic difference between co-branded prepaid cards and debit cards, in this article, we are discussing various features of the two cards. Read on to determine which card is more suitable for you.

2. Credit Inspection For the issuance of a prepaid card to customers, usually no credit check is performed. However, prior to issuing a debit card, banks usually go through the credit score and rating of the customers to ensure that they are responsible enough to repay on time if they ever need a loan.

Interest Rate Since debit cards do issue credit, they also charge interest on your transactions, with zero interest-free periods. However, with co-branded prepaid cards, as no extra money can be borrowed, thus, no interest is charged on your purchases.

Access to Credit Many people prefer plastic money over cash because it provides them with extra credit, which is some extra money from bank as loan. However, all cards do not facilitate their customers with this exclusive option. Prepaid cards allow customers to avail and use that money that they own. On the other hand, debit cards provide an additional option of over draft, through which cardholders can borrow some money from the bank.

5. Compatibility with ATM When it comes to the usage of these cards at ATMs, debit cards provide their customers with the facility on a wide scale. On the other hand, only a few co-branded prepaid cards can be used at ATMs to withdraw money instantly.

ATM Facility Not all prepaid cards empower their customer with the option to withdraw money through an ATM whereas debit cards do facilitate their users with this benefit.

Whether it’s a debit card or prepaid card – both helps the users to keep a prompt record of their expenditure. However, co-branded prepaid cards also allow controlling these expenses by staying within the limits.

Credit card programs are good for those customers who already have bank accounts and are worried about not exceeding their expenditure limits. But, for those cardholders who don’t have bank accounts yet want to avail quick shopping facilities, http://www.gobankpro.com/co-branded-cards.php are the best option.

Barbara Divine

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Tags: business, co-branded prepaid cards, credit card, debit cards, finance, MasterCard, Online Business, prepaid card, prepaid card programs, virtual card, VISA

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