The latest trend in cards is the use of prepaid cards. Many retail stores offer and accept 'prepaid gift cards' - may be you already used one! But prepaid cards are not used only as gift cards. You can now get a prepaid card to even make purchases online regardless of your credit history and present employment situation.

There are prepaid cards for many different situations, from sending money to family and friends, to making payments when you are travelling abroad, or shopping over the Internet. Prepaid Cards can prove to be a secure substitute for cash, cheques and gift certificates.

The Differences between Prepaid Cards - Bank Debit Cards & Credit Cards:

Prepaid Debit Cards - key features:

*No credit checks carried out as you are not asking for line of credit (so no borrowing and no debt on your part). *You do not get charged interest. *Your employment situation is not verified. *In some cases, fees may be charged depending on the type of card. (Read T and Cs carefully where they will be clearly explained.) *Only require simple customer information. *Under 18's can have access to card. *Can be presented worldwide,wherever Visa - MasterCard and/or Maestro are accepted, depending on the brand mark on your card. *Use at an ATM. *Normally, includes free bill payment service, so you can pay anyone online or over the phone. *Can be blocked/cancelled if stolen or lost. *Free rewards programs are offered by many cards.

Bank Debit Cards:

*Credit verification to open the bank account to which the card is linked. *Account might have an overdraft facility. *Interest charges usually applies on money borrowed against an overdraft and with no interest free period. *Fees if you go over an agreed overdraft. *Full customer information is required. *You can use card wherever Visa - MasterCard and/or Maestro are accepted, depending on the brand mark on your card. *Can be used at ATMs. *May be cancelled/blocked if lost or stolen.

Credit Cards:

*Credit check to approve card, decide credit limit and set interest rate. *Line of credit that can be increased over time. *Interest charges on money borrowed against the credit limit, if there is an outstanding balance after the interest-free period. *Charges such as late payment fees, over-limit fees, cash advance fees, foreign exchange charges, duplicate statement fees and nonactivity fees. These are explained in the T and Cs for each card product. *Require full customer information. *over 18. *Can be used anywhere Visa or MasterCard is accepted. *Can be used at an ATM. *Can be cancelled/blocked if lost or stolen.

Who can obtain a Prepaid Card? Prepaid cards can be obtained by individuals who have a bad credit history or individuals that do not qualify for a bank account. A person who does not want to carry large amounts of cash. Backpackers. A person who does not want to pay credit card interest charges. Parents who want to provide their children with secure and limited spending capabilities. Cardholders who would like to plan their finances. Overseas travellers. Employees who wish to place funds onto these cards, decreasing payroll distribution costs, simplifying bank reconciliation, reducing fraud and eliminating lost cheque cancellation and replacement. cheap money transfers. It's simple to add an additional card which may be sent to another person.

So, Prepaid Cards are a secure substitute for cash, cheques and gift certificates. They provide a number of advantages. And they are available to almost anyone including individuals who do not qualify for a standard credit card.

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