Prepaid Debit Cards compared
Your guide to all Prepaid Cards
Prepaid Cards are suitable for those with any type of credit rating and are useful in times when you need a debit card when you don't have a bank account.
Decisions, decisions: Popularity of prepaid credit cards make comparison websites a buyer’s market
There is no denying that different people use their card for different purposes. Frequent business travellers make regular transactions abroad, some consumers use their cards to withdraw cash and most teenagers would use a card to buy music downloads and do online shopping.
With prepaid cards increasing in popularity and becoming as viable an option for consumers as a credit or debit card, companies are doing their utmost best to catch the attention of the discerning consumer who is looking for the best deal.
This is proving to be an excellent advantage for the consumer, as they begin to benefit from the expansive choice of prepaid credit cards which are available and that offer different features.
For example, it has been confirmed that there are an increasing amount of prepaid card providers that are offering services that herald no transaction fee. This is an excellent advantage for people who principally use their card to buy products online and on the High Street. A transaction usually means a small percentage of the price paid for a product is added on again as a service fee to the company.
A new feature is a lack of a charge for using an ATM. With some consumers preferring to pay in cash, the lack of such a fee eliminates more money being debited from an account balance than the amount withdrawn.
If a consumer only tops up their card little and often, there can be cards which do not deduct a small percentage of the amount topped up – great if you want to get the most out of your money.
As consumers become savvier, people are becoming more careful about what services they choose. One consumer habits survey revealed that some consumers consider what purpose a prepaid card would hold before deciding to invest in one.
There are cards out there that offer no transaction fees, no fees for cash withdrawals and no fees for topping up – but it is very rare that you will find two or all of these together. Do remember that prepaid credit card companies do have to make money from this somewhere, and an absent fee in one place could mean a more expensive charge elsewhere. The advice is – don’t be afraid to do your homework and don’t be afraid to have a calculator at the ready so you can determine which service leaves you better off.