If you are looking for information regarding prepaid debit cards, then you have surely stumbled upon an excellent article. Below we will discuss some of the basic features and characteristics of prepaid debit card programs.

Basic Facts About Prepaid Debit Cards

1.Prepaid debit cards have unique characteristics. A prepaid debit card is actually a combination of a regular credit card and a traditional debit card program. How is this possible?

As we all know, debit cards are designed in such a way that they require cardholders to load money onto them, before they can be used in making purchases as well as in paying bills and other expenses. This is also true about prepaid debit cards. Before they can be used in card transactions, both offline and online, they need to contain first adequate funds that will serve as the balance that cardholders can use in paying for the items and services they need.

Also, prepaid debit cards function just like regular credit cards. In what way? Well, they are normally accepted as great substitutes for credit cards in commercial establishments that rely on card transactions. Prepaid debit cards are even accepted in stores and online shops which recognize and accept credit cards but not debit card programs.

2.Prepaid debit cards are also known as credit cards for bad credit. Since issuers of prepaid debit cards do not run credit checks on their prospective cardholders, consumers can receive the plastic cards they need, regardless of their credit scores. So, even if a consumer may possess poor credit ratings, he can still be granted the prepaid card he intends to use in making purchases and in paying his bills and expenses. This is the reason why prepaid card accounts are also considered as credit cards for bad credit.

3.Prepaid cards cannot help consumers repair bad credit. Despite their many beneficial features, prepaid card accounts cannot help consumers repair bad credit history. This is because in these card programs, cardholders do not receive credit lines from lenders and credit firms. Instead, the consumers themselves are the ones loading money onto their prepaid card accounts. So even if a consumer will resolve to responsibly manage his credit card for bad credit he will soon discover that his efforts did not have any impact on his credit profile and that they did not even help him repair his bad credit standing.

We hope that this short discussion helped you learn some basic facts about prepaid debit cards.

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 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!

Many people who cannot get approved for a regular credit card because bad credit may opt to use a prepaid debit card instead.  While there are many advantages in using a debit card such as not having to pay interest rates and having more control with your spending, consumers need to be aware of the risks associated with debit card payments.

Apparently, there is a greater risk involved in paying with a debit card than there is in using a credit card.  In this article, let’s discuss what these possible risks are along with some tips on how to safely use a debit card.

Limited liability protection. Credit cardholders usually enjoy a $50 liability protection on fraudulent transactions and there are some credit cards that even provide zero liability.  With a debit card, you can get the $50 liability protection on unauthorized charges but only if you will report it within 2 days after the transaction was made.  Beyond that time period, a debit cardholder may be required to pay up to $500 or pay the entire charge, whether it was made with or without the account owner’s consent.

More difficult to get refunds. In case there’s a problem with the purchase you made, it will be completely up to the seller if you will be given a refund or not.  Remember that unlike credit cards that are paid at a later time, debit card purchases are instantly paid the moment you made the purchase.  That means, the amount of purchase will be automatically deducted from your funds as the merchant ships out your order.

The problem with this arrangement is that the customer may receive a defective item or may not receive the item at all.  Of course, customers can always dispute but since payment has been made, but if the merchant refuses to recognize your complaint, then you just lost your money.

To avoid being ripped-off, consumers are strongly advised to purchase only from reputable merchants, especially when purchasing online.  Check the seller’s rating and track record of sales.  What do past customers say about this seller?  More importantly, understand the merchant’s policy on purchases, returns, refunds, warranty, etc.

Your funds can be placed on “hold”.  Some establishments like hotels and car rental companies may place a “hold” on your funds aside from your bill. That means, your available cash in your debit account will be inaccessible to you for a specific time period.  For instance, the hold may last until the last day of your stay or until you return the rented car.

While the amount on ”hold” will be returned to you, such “holds” may lead to overdraft charges, especially there is insufficient funds in your account.  Therefore, be sure to inquire about the merchant’s policy on “holds” before using your debit card for payment.

The danger of identity theft. Technically, it is much easier to obtain debit card information and use them on unauthorized transactions without the cardholder’s knowledge.  This is why debit cardholders need to be cautious.

To avoid serious damage, consumers are advised not to link their debit cards to their savings accounts.  Therefore, in case identity thieves manage to steal their information, their bank accounts will not be drained.  In addition, see to it that you are using a secured website and that your computer has an updated antivirus protection before paying with your debit card online.

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!

For a long time, credit cards have overshadowed debit cards but now, consumers are starting to appreciate the value of debit plastic cards.  In fact, you can find debit cards that offer different reward programs which certainly add up to their popularity.  And as consumers try to steer clear of bad credit, the use of debit cards seems to be favoured today, more than ever.

Let’s take a closer look at the reward programs associated with debit cards:

Debit Cards with Cash Back Rewards

Just as cash back credit cards are a popular choice among consumers, debit cards with cash back rewards are an obvious favorite as well.  Usually, debit card issuers give 1% cash back or 1 point for every dollar worth of purchase.

For example, the debit cash by PerkStreet Financial offers1% Cash Back Rewards on Non PIN-Based Transactions. Pay Pal Debit Card also offers 1% cash back for every purchase as long as the cardholder is enrolled in the PayPal Preferred Rewards Program.

Merchant-Affiliated Debit Rewards

Some debit card issuers partner with merchants to offer more exciting rewards.  For instance, Chase has its own version of a cash back debit card called the Real Cash Rewards Debit Card which offers up to 3% cash back, depending on your monthly spending.  Chase debit cardholders can also earn up to 30% cash back on purchases made from more than 600 retailers that are included in the Chase Real Cash Mall.

MasterCard has also introduced the MasterCard Marketplace for both debit and credit cardholders.  The MasterCard Marketplace features different retailers that sell various products and services.  Mastercard debit cardholders are entitled to cash back bonuses by purchasing from affiliate merchants online.

Visa Debit card offers 3 cash back points for every dollar spent on partner retailers such as Staples, Expedia, BestBuy, Linens n’ Things and up to 20 cash back points on purchases made at selected stores like 1-800-Flowers, SmartBargains, and more.

Special Program Debit Reward Cards

Then there are debit cards that offer special reward programs that appeal to specific niches.  For instance, Citizens Bank has come up with the Green$ense cashback debit card which are sure to attract environmentalists. This debit card offers to give 10 cents for every paperless payment charged to the card.  Green$ense cardholders can earn up $120 each year, plus a monthly newsletter that includes tips for green living.

Choosing Your Cash Back Reward Debit Card

We have discussed the three major types of reward programs offered on debit cards.  Before applying for a debit card, make sure that the reward program matches with your personal lifestyle.  Understand the specific rules of the reward system.  More importantly, check the fees involved in using your chosen debit card to avoid unexpected charges.

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!

If you plan to rent a car on your next trip, you must have your credit card ready. But what if you do not have a credit card? Or what if you do not want to use a credit card to rent a car? Is it possible to use your prepaid debit cards for payment?

Here are some tips on how you can use a prepaid debit card to rent a car without hassle:

Explore your options. Different auto rental companies have varying policies in accepting renters. Do your research online and get to know which companies allow prepaid debit card payment. It is also a good idea to call up different branches of the same company as the rules may vary from one branch to another.

Be prepared to wait in line. Paying with a credit card is the quickest way to make a transaction. If you’re going to use a prepaid debit card, expect that the process will take much, much longer. You may have to wait in line at the car rental counter as your credit history, proof of auto insurance, and other Identifications are verified.

Load up your debit account. Aside from the cost of the car rent, you must have available funds in your debit account. This is known as the “hold” or “block” – funds which are linked to your checking or savings account.

Visa or MasterCard. Merchants and auto rental services only accept debit cards that are supported by major processors such as Visa or MasterCard. If your debit card does not bear the Visa or MasterCard logo, major rental companies may refuse to do business with you.

Check your credit rating. Your personal credit rating will be questioned as well. If you have a history of bankruptcy or if you have a low credit score, you may find it difficult to rent a car using prepaid debit cards.

Prepare necessary documents. You will be asked to submit supporting documents such as utility bill, proof of auto insurance, return airline ticket, itinerary, driver’s license, and valid IDs. The names and signatures on the documents you submitted should match with the name and signature on your prepaid debit card.

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!

It doesn’t really matter if you already own a credit card or not. Having a debit card in your wallet can come in handy at any time. What benefits can you expect from a prepaid debit card? Here are 8 benefits to think about:

1. You can set your own spending limit. With a credit card, it can be a little difficult to control spending because you have the option to purchase in advance and pay at a later date. With a debit card, that’s just not possible. If you want to limit your spending, deposit only the amount you plan to spend for the entire month. This way, you can be more in control of your budget.

2. Safer for travels and shopping around. Why carry a large amount of cash in your wallet when you can bring a prepaid debit card instead? Just like credit cards, debit cards offer protection against lost. In case your card gets stolen, you can call your issuer to have your account blocked against unauthorized transactions. Your debit card will be replaced with a brand new card number.

3. Avoid bad debt. Debit transactions are automatically paid the moment the purchase was made. If you don’t have an existing balance in your debit account, you will not be able to make any purchase. Thus, it eliminates the risk of bad debt.

4. No credit check. You don’t need to have a perfect credit history to get a prepaid debit card. Just like department store cards and gas station cards, credit check is not a requirement. Even with no credit or poor credit, you can easily get one.

5. No monthly bills. No bills will come your way, no payment due dates, no late penalty charges, and no interest rates. Imagine how stressful it must be to be worrying about all these.

6. Withdraw cash from any ATM at any time. Prepaid debit cards are also great during times of emergencies when you need to cash. For parents who need to send money to their college kids on a regular basis, a debit card is the faster, safer, more convenient and cheaper way to do that.

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7. Can be used locally and internationally. If you travel to different countries, choose a prepaid debit card with a Visa or MasterCard logo. This way, you can be sure that your card will be accepted at leading merchants worldwide.

8. Build credit history. The newest prepaid debit cards in the market today offer credit reporting to the major credit bureaus (Experian, Equifax, TransUnion). Those who want to establish credit or rebuild bad credit can get a debit card without worrying about getting rejected.

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!