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Essential Aspects of Prepaid Cards

Unlike credit cards that can be used to buy just about anything under the sun, a prepaid card can also be used for the same but there is a catch. It is not unheard of and a new concept but prepaid cards, it seems have become even more popular as compared to credit and debit cards. Here we will discuss at length about the prepaid cards and its essential aspects. So, read on for more information.


A prepaid card is a preloaded plastic card with the help of which you can make purchases. It is a reloadable card in which you can "load" money with the amount you intend to spend. For instance, if you have plans to make purchases worth 5000Euros, you can "fill" it up with this amount and shop till the time you don't exhaust this amount. And if you don't spend the entire amount, the balance will remain in the card, which can be used on a later date. Regardless of whether it is credit cards, debit cards or prepaid cards, these cards get their imaging done at various stores. One such vendor that is into card imaging is http://www.publicenter.it/.

Issuing prepaid cards

These plastic cards can be issued under different circumstances and under different terms and conditions. For instance, in the United States, few such cards are meant for a specific category of customers depending on their specific requirements. Apart from these, there are other types of prepaid cards like gift cards, government benefit cards, payroll cards, and so on. In fact, there are many government agencies and employers that prefer to make payments to their employees through these prepaid cards. The same applies to beneficiaries too.

Pros and cons of using prepaid cards

These types of cards are good especially for individuals that are "unbanked". Apart from this, in order to get hold of a prepaid card, you don't have to undergo any approval procedure; there are no credit checks that are carried out, and no reviewing of credit histories. This is the best possible way for acquiring a card especially if you don't have an account in the bank. Most importantly, since you know that you are using a limited amount of money that you have to "reload", the chances of falling into a debt trap (as in credit card default payment) are ruled out. This helps in developing the habit of budgeting and working within a stringent budget and cash availability. These are also good for kids and parents can restrict the expenses of their kids with the help of these cards. Also, card fraud and the chances of identity theft can be ruled out if you are using prepaid cards.

Although there are various advantages of using prepaid cards, there are few downsides to these cards too. One of the most disturbing of all consequences of depending entirely on your prepaid cards is that you don't get an opportunity to build your credit history. This can be a hindrance especially if you have plans to apply for loans or credit in the near future.

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