If you plan to use your debit card for purchasing online, what important steps should you remember?  Check out the following reminders on how to safely use your debit card for online shopping:

Check the security of the website. Make sure that the website address begins with “https” (Hypertext Transfer Protocol Secure), indicating a secured server.  When filling out forms or providing personal details, you should always check the https.

Check the credibility of the merchant. Remember that not all online shops are legitimate.  There are hundreds of merchants that set up fake websites to victimize unsuspecting customers.  Before making a purchase, check the background and reputation of the seller.

Even if the website shows a BBB (Better Business Bureau) logo, it is better to check from the BBB if the merchant is truly registered and that there are no cases of fraud filed against the company.

Check the merchant’s policy. Read the seller’s policy particularly with regards to purchases and returns.  In case your items are shipped in an unsatisfactory condition, you’ll know your options.  Does the seller offer warranty protection?  Will the product be replaced or can you refund your payment if the item is defective?

You must also check the seller’s Privacy Policy as to how they use customer information that they collect to process an order.  Will your information be stored in the company’s database?  Make sure that the seller will not sell your information to other merchants or third parties.

Submit a minimal amount of cash in your debit account. Do not deposit a large amount of money in your debit account.  To be safe, submit only a sufficient amount of cash that you need to make the purchase.

Monitor your debit account. Regularly monitor your debit account especially after your purchase.  Take note that the moment you checked out and paid with your debit card, the bill will be automatically deducted from your account.

In case you are billed incorrectly, notify the merchant immediately.  Debit cardholders only have 2 days to report erroneous or fraudulent charges. If you report within two days, you’ll only be liable to pay $50.  However, if you fail to inform your issuer about unauthorized charges within two days, you will be liable to pay up to $500.  After 60 days, you may be forced to pay the complete charges.

Protect your computer system. Is your computer protected with a reliable antivirus and anti-spyware software?  Don’t forget to check if your antivirus is updated.  Purchasing an antivirus program is definitely a wise and important investment even when you do not make online purchases.

About the Author

Tara Tiemann is a credit analyst for Go-prepaid.com which has been a resource site for people who want to live debt free. If you are on a budget using prepaid debit cards,prepaid credit cards and prepaid cell phone service can save you big money!

Would you like to rent a car using your prepaid debit cards?  Generally, many car rental companies only accept credit card for payment.  But as more and more consumers prefer to pay with their debit cards, some car rental companies are willing to accept this method of payment.  Nevertheless, you need to be smart about it.

Below are practical tips and how to use a debit card for renting a car:

1. Check the car rental company’s policy. You can check the policy of different rent-a-car companies by checking out their website or calling the customer service number.  While some companies may strictly require a credit card, some companies may have more relaxed policies with regards to payments.

2. Be prepared to wait in line. Paying with a credit card gives you the option to pay online.  However, if you want to pay with a debit card, the car rental company may require more proof to verify your credibility.

3. Ask if you can pay with your credit card. Despite what is stipulated in the policy, some car rental companies may also accept debit card payment, if you make request.  Thus, it is always worth the effort to ask if you can use your debit card.

4. Be aware of “holds” and “blocks”. A lot of merchant impose a “hold” or a “block” to the cardholder’s checking or savings account to ensure payment.  Thus, aside from the cost of the rental service, you may need to reserve extra funds in your account which will be “frozen” or put on “hold” for 1 day to 14 days, depending on the company.

5. Make sure your debit card is compatible. Some merchants only accept debit cards with Visa or MasterCard logos.  If your debit card has different logo, you may want to check first with your prospective rent-a-car company if they accept such type of debit card.

6. See to it that you have good credit. Some people may not get approved for a regular credit card because of a poor credit history.  For this reason, rental-a-car companies do a credit check before accepting a transaction.  Take note that each time an inquiry is made in your credit report, it will also show up in your file.  Too many inquiries can send out a negative impression to prospective creditors.   Hence, if you are aware that you have bad credit, you may choose to pay in cash instead of using your debit card.

7. Prepare proofs of ID. Some rental car companies may ask to see proofs of identification such as auto insurance documents or recent utility bills.  The name that appears on these documentations must be the exact name that appears on your debit card as well.

About the Author

Tara Tiemann is a credit analyst for Go-prepaid.com which has been a resource site for people who want to live debt free. If you are on a budget using prepaid debit cards,prepaid credit cards and prepaid cell phone service can save you big money!

What’s great about debit cards is that you can use them like a credit card without the risk of debt build-up.  Nevertheless, using a debit card indiscreetly can still get you into trouble.  In this article, let’s talk about ten best tips on how you can use your debit card in the most advantageous way:

1. Put your personal spending in check. Although you can only use your debit card if you have an available balance, there is still the tendency to spend your funds on unimportant purchases.  If you’re having trouble controlling your spending, avoid saving a large amount of cash in your debit account.

2. Monitor your purchases. To keep track of your spending, make it a habit to write down each purchase or each transaction you pay with your debit card.  Keeping a record of your transactions can help you manage your debit account more effectively.

3. Avoid overdraft fees. Although exceeding your limit is not allowed, there may be instances when your purchase is accepted even it exceeds your available balance.  However, you will be charged with an overdraft fee which can cost $30 or more.  Avoid such fees by checking your account first before making a purchase.

4. Look out for “holds”. Some hotels and rent-a-car companies may hold some of your available funds in exchange for a reservation.  In this case, you want to make sure that you understand the exact “hold” amount and how long it would be held by the merchant.  Better yet, you may consider using a credit card or paying the bill in full with your debit card.

5. Choose a strong PIN code. A recommended PIN code is a random combination of digits that has nothing to do with your personal information such as your birthday or anyone in your family’s birthday or your wedding date.

6. Check your account often. Be sure to check your debit account online regularly especially after making a purchase.  Check the exact fees that you incurred from the transaction.  The Federal Law protects debit cardholders from fraudulent transactions but only up to $50 and you need to inform your bank within two days after the transaction was made.

7. Do not link to your savings accounts. To be safe from fraud, it’s best not to link your debit account to your savings account.

8. Do not use your debit card for large purchases. If you plan to make a large purchase online, don’t charge it on your debit card.  Keep in mind that debit cards offer only a limited protection so you may not get much help in case there is a problem with your purchase.  Instead, use a credit card that offers a Fraud Liability Protection so you can have the option to dispute charges should you need to.

About the Author

Tara Tiemann is a credit analyst for Go-prepaid.com which has been a resource site for people who want to live debt free. If you are on a budget using prepaid debit cards,prepaid credit cards and prepaid cell phone service can save you big money!

We have all been taught to live only within our means. In today’s society which features lavish lifestyles and shopping sprees, most people find it hard to manage their finances well that they even go way beyond their specified budgets so that they could enjoy the best things in life.

Eventually these individuals find it hard to resist using their credit cards to finance their online purchases, and travel charges. Soon, they accumulate so much debt that will prove to be very difficult to settle.

So if you believe in the premise that you need to control and discipline yourself to stick only with whatever finances you have, but still you would like to keep a handy plastic card; then, you might as well apply for prepaid debit cards. What are these cards for? The answer is provided below.

Prepaid debit cards are excellent tools to give people the flexibility to make purchases without the threat of accumulating large debts. The reason behind this is that this debit card requires a fund to be ‘loaded’ or transferred to it, before a cardholder could use it for making purchases or settling monthly bills.

These reloadable prepaid cards function in the same manner as prepaid mobile services; you only get to enjoy sending messages and calling up your friends as long as there is available credit on your mobile phone. By using these debit cards, people will surely live and stick to the budget they have set, without encountering any credit entanglements.

Another good thing about most prepaid debit cards is that they do not charge interest rates on purchases. (some debit cards DO charge fees on declined transactions)

A lot of other cards today impose a large number of fees to their clients, especially when their clients encounter declined purchases. But for these reloadable prepaid cards, cardholders need not worry about additional interest rates and late penalty charges.

Other features of prepaid debit cards include, relatively easy approval of card application, and online monitoring of the expenses and purchases charged on the debit card. These features prove to be helpful in convincing more people to get their own prepaid debit cards so that they could also reap the benefits that these cards could offer.

So, apply now for these debit cards and soon you will realize the value of living only within your means.

About the Author

Tara Tiemann is a credit analyst for Go-prepaid.com which has been a resource site for people who want to live debt free. If you are on a budget using prepaid debit cards,prepaid credit cards and prepaid cell phone service can save you big money!

As debit cards become more popular among consumers, the Federal Trade Commission warns all prepaid cardholders to exercise caution when using these cards for payment, particularly when purchasing from the internet.  How can you avoid being a victim of credit card fraud?  Check out the following safety tips:

Https://. To ensure the security of a web site, make sure that the URL or the website address begins with https://.  You should be able to check this from your browser’s address bar.

Privacy Policy. An online merchant must present its Privacy Policy on its website.  Take the extra time read this important information.  Because every merchant has its own set of policies on protecting their customer’s rights to privacy, you should be clearly aware of how your personal information will be used and what you can expect from the merchant.

Merchant Reputation. It is strongly recommended that you purchase only from trusted merchants online.  Get to know the company’s background and reputation.  Although you can find online stores that offer incredibly low prices, you want to make sure that you are dealing with a legitimate seller who only sells high-quality products.

Seal of Approval. Look for online shops that bear logos or seals of approval from National Business/Merchant organizations like the BBB (Better Business Bureau) and TRUSTe.  Take the extra effort to check the merchant’s record from the BBB.

Fraud Liability Protection. Does your debit card Issuer provide you protection against fraudulent or unauthorized charges made using your account?  Prepaid debit cards by Visa and MasterCard comes with this provision as their standard credit cardholders do.  If you are not sure, review your debit card’s Terms & Conditions before using your card online.

Purchase Protection. What about purchase protection?  For instance, prepaid debit cards with the VISA logo requires online verification before the cardholder can continue with the purchase.  This gives VISA cardholders additional security against fraud.

Check your bill. Review your debit card receipts to make sure that all charges are correct.  If you find errors, call your debit card company immediately.

Check out fees. Some prepaid debit cards carry so many extra charges on every transaction you make, including online purchases.  Before using your debit card to buy from the internet, review the fine print and get to know the possible fees that you may incur.

Check your funds. Make sure that you have sufficient balance in your account to pay for that particular item.  Some debit cards charge overdraft fees and other penalties in case your purchase exceeds your limit.

Do not share your PIN with anyone. You will be required to enter your debit card’s Personal Identification Number (PIN) when making purchases both online and offline.   Never let the cashier or anyone else enter these numbers for you.

Do not use your debit card account for savings. Limit funds in your debit card account and avoid making large deposits.  This way, in case your account gets hacked, it will not be a heartbreaking loss for you and you can always switch to a new account.

About the Author

Tara Tiemann is a credit analyst for Go-prepaid.com which has been a resource site for people who want to live debt free. If you are on a budget using prepaid debit cards,prepaid credit cards and prepaid cell phone service can save you big money!

Pre paid credit cards are said to be the solution for those who got disapproved from their credit card applications. The following are benefits that one can get from owning a prepaid credit card:

Incentives

There are some that offer extra load when you refer a friend to apply to the same debit card company.

Easy application process

Everybody who wishes to apply can be legible, even those with poor credit history are entitled to apply. No background check, employment verification nor credit history check to undergo. The application procedure is lax unlike from credit card because their basis is on the money that will be deposited, so the approval is assured.

Security

Entering a credit card number on the internet can be very uncomfortable. Using a prepaid card is a lot safer because aside from already been accepted as a mode of payment online, the crooks can only get the value that has been loaded on the card. You feel secured using the prepaid card whether online or in person.

Better than cash

Bringing huge amount of cash in malls or anywhere can be uneasy. It can also be too enticing for those who have bad intentions, if they see that you’re bringing all those cash in hand. Another thing is that if your cash is lost, then it can no longer be returned back to you. But if you’re debit card gets misplaced or lost, you can still replace a new card.

Convenience

Debit cards, like credit cards, have been widely accepted anywhere: malls, grocery stores, online, restaurants and gasoline stations. You can also pay (either online or by phone) your bills such as utility bills, phone bills and other bills that you have to make. In some cases, they more accepted than credit cards.

Controlled spending

Spending is more controlled with a prepaid card because it depends on how much is the load. Compared from bringing cash, it is also easier to keep track the money when your card is used. If it’s already empty when you’re about to make payments, the transaction gets automatically declined.

Develop financial responsibility and discipline

It teaches how to use and handle money responsibly. When doing purchases on the internet, it is easier to track where the money was spent. You can see the transaction history online and you can also do it by phone. So, you can be sure that you won’t lead into any kind of debts. Overspending is impossible to be experience with prepaid debit cards because of the limited balance. This certainly is a skill that can be developed with debit card and not with credit card.

The procedure when purchasing is almost same as using a credit card. Once you’re at the cashier, you hand your card to the clerk, sometimes they ask you to sign on the receipt, then your card and the receipt is given to you. Then, you’re done. This card when used for purchasing,is not as risky as a credit card and the process of application isn’t that complication.

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About the Author

Tara Tiemann is a credit analyst for Go-prepaid.com which has been a resource site for people who want to live debt free. If you are on a budget using prepaid debit cards,prepaid credit cards and prepaid cell phone service can save you big money!

A lot of parents are hesitant about handing credit cards to their teenagers due to the risk of bad debt.  Surveys prove that teenagers are more prone to overspending especially since most of them do not pay for their own charges.

In this article, let’s discuss how prepaid debit cards can be the perfect tool for teaching young people how to handle credit without falling in the trap of uncontrolled debt.

Prepaid Cards – How They Work

A prepaid card can be used for purchases from a regular store or an online store much like a traditional credit card.  It is cashless form of payment.  However, instead of paying for your balance at a later time, a prepaid cardholder must first deposit cash in his/her account before charging expenses to the card.  In short, you can’t use your prepaid card if you don’t have existing funds.

Prepaid debit cards can also be used for sending and receiving cash to people from afar.  Instead of paying a wire money transfer service, you can send money to your family members using your debit account.  Once sent, the recipient can withdraw the money from a nearest ATM.

Both Visa (Visa Buxx) and MasterCard (Allowcard ) have created their own versions of prepaid debit cards especially for teens.  Unlike credit cards, prepaid debit cards do not have interest rates, overdraft fees or late penalty charges.

Teach Your Teens About Credit Management

If you are a parent, here are practical tips on how you can train your teenagers on how to manage credit responsibly:

Limit their credit usage. Deposit only a limited amount of cash in your teenager’s debit card.  They should know that once their available balance is spent, they will need to work their own budget.

Let them earn it. Parents can set house chores or tasks for their kids to help them understand about the value of work and money.

Keep track of their spending. Parents can easily monitor their teen’s spending habits by simply logging in to the account.  Most debit card issuers provide an online account access for easy checking.

Involve your teens. When choosing a prepaid debit card, get your kids involved.  In comparing different debit cards in the market, study possible choices with your child.  Read the fine print or the Terms and Conditions together.  This way, your teen will be aware about the costs in maintaining the debit card as well as its limitations.

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About the Author

Tara Tiemann is a credit analyst for Go-prepaid.com which has been a resource site for people who want to live debt free. If you are on a budget using prepaid debit cards,prepaid credit cards and prepaid cell phone service can save you big money!

If you have tried making a money transfer using a traditional Wire Money Transfer Service, then you will agree that the process can be very inconvenient, time-consuming and costly.  Thanks to the introduction of the Prepaid Debit Cards in the market, money transfers have become a virtually effortless process.  Furthermore, sending money through prepaid cards are free from any service charge so you can imagine how much savings you can enjoy if you’re someone who uses money transfer services regularly.

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Money Transfers and Prepaid Debit Cards – Perfect Partners

Anyone can easily get a prepaid debit card whether he/she has a credit history or not.  Even people who suffer from a history of bad credit can get one without difficulty.  To be able to use the money transfer feature, both the sender and the recipient must have a prepaid debit card.

If you need to send money, all you have to do is make a deposit to your prepaid debit account and transfer it to the recipient’s debit account.  If you already have existing funds in your account, sending money is as easy as logging in to your online debit account.

Once the transfer has been done, the recipient can instantly make a withdrawal from an ATM nearest to his/her location.  The recipient can also choose not to withdraw the funds and use the prepaid debit card for payments.

Who Can Use Prepaid Cards for Money Sending

Prepaid debit cards are ideal for people who often need to make money transfers on a regular basis.  For instance, parents who have college kids in boarding schools can use prepaid cards for sending their monthly allowance.  If you are working abroad, you can also use a prepaid debit card for sending money to your loved ones.

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The great thing about prepaid cards is that they are supported by major credit card Networks like VISA, MasterCard and American Express so you can be assured that the card can be accepted in a wide range of merchants and establishments worldwide.

Small business owners who need to send salary payments to their employees can greatly benefit from prepaid debit cards because it’s a more convenient way to make money transfers and it is free as well.

About the Author

Tara Tiemann is a credit analyst for Go-prepaid.com which has been a resource site for people who want to live debt free. If you are on a budget using prepaid debit cards,prepaid credit cards and prepaid cell phone service can save you big money!

Many people do not want to get a prepaid debit card until they need one. When stuck in bad credit, you will not be able to get approved for credit cards that require a good credit score. In this case, applying for a debit card gives you a guaranteed approval.

Prepaid Debit Cards for Rebuilding Bad Credit

It is good to know that prepaid debit card issuers today now provide credit reporting to the major bureaus.  This means people who need to rebuild their credit history can now use a debit card to do so.  However, prepaid debit cards are not just for people with bad credit.  Below are other benefits of using prepaid debit cards.

Avoid interest rate charges. When you use your debit card for payment, your bills will automatically be deducted from your cash deposit.  Since a debit card payment is as good as cash payment, you will not be charged with any interest rate.

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Avoid late penalty fees. Submit your credit card payment even just a day after your due date and you will incur late penalty charges.  With a debit card, you can completely forget about late fees.

Limit your spending. Credit card holders often fall in the debt trap because of maximizing their credit limit or falling behind on their payments.  Because of its limitation, using a prepaid debit card can help you exercise more control over your spending.

Send or Receive money conveniently and cost-effectively. Do you need to send money to your kids?  DO you have employees that you need to send payment to regularly?  If yes, then using a prepaid debit card is an easier and more cost-effective way to transfer money.

Sending money through Wire Money Transfer services mean paying for a service charge per transaction.  With a debit card, transferring money is free as long as your recipient uses a debit card from the same issuer.  Furthermore, your recipient can withdraw the money only a few seconds or minutes after the transfer was done.

About the Author

Tara Tiemann is a credit analyst for Go-prepaid.com which has been a resource site for people who want to live debt free. If you are on a budget using prepaid debit cards,prepaid credit cards and prepaid cell phone service can save you big money!

As the number of cardholders who default on their payments increases, credit card companies have come up with ways on how to service the bad credit market.  How?  By offering secured credit cards and prepaid debit cards to people with bad credit history.

What Are Prepaid Debit Cards?

A prepaid debit card is a mode of payment which can be acquired by people with bad credit.  If you can’t get a regular credit card that requires good or excellent credit history, then a debit card is made for you.

You can use a debit card just like a credit card.  However, you must first submit a cash deposit to your account before using it for payment.  The amount of deposit you have in your account also determines how much you can charge to your debit card.  Once you have reached zero balance, you must make a new cash deposit to your account.  What are the pros and cons of a prepaid debit card?

The Pros of Using A Prepaid Debit Cards

Cashless shopping. Instead of bringing along a significant amount of cash when buying your groceries or strolling at malls, you can simply bring your prepaid debit card for safety and ease.

Convenient for travels. Travelers can also enjoy the convenience of using a prepaid debit card instead of paying with cash or checks.  Prepaid debit cards with Mastercard, American Express and Visa logos are accepted wherever credit card payment is available so you can take it anywhere you go.

No need to worry about repayment. Once you charge a bill to your debit card, it will be instantly paid off using the money you deposited.  With a prepaid card, you don’t have to think about payment due dates, interest rates or late penalty charges.

Anyone can get a debit card. Applying for a prepaid card is so easy and you are automatically granted an approval regardless of your credit history.

Avoid the risk of bad debt. With a prepaid card, unplanned purchases can be avoided since you can’t use it if you don’t have existing funds in your account.

The Cons of Using A Prepaid Debit Cards

Per Transaction Fees. Prepaid debit cardholders must remember that there is an additional fee for every transaction.  To cut back on costs, plan your purchases ahead of time so you can pay for all your purchases at once.

No credit line. Some people dislike prepaid debit cards because they can’t borrow against their credit.  However, if you take a look at the advantages, you will see that owning a prepaid debit card is worth it.

About the Author

Tara Tiemann is a credit analyst for Go-prepaid.com which has been a resource site for people who want to live debt free. If you are on a budget using prepaid debit cards,prepaid credit cards and prepaid cell phone service can save you big money!