In among the many different options to pay by means of plastic money, people often end up being confused on debit and co-branded prepaid cards. They are way too similar both in their cancellation policy as well as their usage for most of them to be really sure of which one they should choose from. So, you may exploit them worldwide and they may be cancelled when stolen or lost with ease. However, their logos make them distinct. This article addresses those concerns to make selection for you easier.
Information on Customers. A prepaid card issuance would need less and some very basic information regarding their customers. A debit card though would call for entire, much detailed, background information.
Is There A Credit Check? Customers are not charged with any credit check before the issuance of prepaid cards. However, credit checks are performed by the banks for debit cards to verify customer's credit score and ratings before they issue them.
Do They Charge Interest Fees? There is no interest involved in prepaid cards as users are not allowed to borrow money. However, debit cards charge these interest fees for overdue overdrafts and there is no interest-free period.
Card Charges. Prepaid credit cards are often charged with a small opening fees or maintenance charges, especially in cases of co-branded prepaid cards. On the other hand, debit cards with be charged with any fees applicable to the bank account, as well as any penalty fees applied to overdrafts that have become overdue.
The Credit to be Issued. Since prepaid cards are yet another method to use an individual's money, the person will not be issued any credit by means of using this card. In order to use it effectively anywhere in the world, you have to load the money and get it linked with a co-branded prepaid card. Most of the people are likely to find the debit cards more appealing for the fact that they have an overdraft facility even as they agree to let them withdraw the required amount from their account only.
Using ATMs. Not all of the prepaid cards empower a bank customer to be able to withdraw their money through an ATM whereas debit cards do facilitate their users with this benefit.
Conclusively, co-branded prepaid cards are ideal for those who do not have bank accounts yet and will probably take to a loan to fulfill their needs. Others owning an account already and not wanting to exceed their limits can simply go ahead in opting for debit cards. Be sure to act wisely.
Information on Customers. A prepaid card issuance would need less and some very basic information regarding their customers. A debit card though would call for entire, much detailed, background information.
Is There A Credit Check? Customers are not charged with any credit check before the issuance of prepaid cards. However, credit checks are performed by the banks for debit cards to verify customer's credit score and ratings before they issue them.
Do They Charge Interest Fees? There is no interest involved in prepaid cards as users are not allowed to borrow money. However, debit cards charge these interest fees for overdue overdrafts and there is no interest-free period.
Card Charges. Prepaid credit cards are often charged with a small opening fees or maintenance charges, especially in cases of co-branded prepaid cards. On the other hand, debit cards with be charged with any fees applicable to the bank account, as well as any penalty fees applied to overdrafts that have become overdue.
The Credit to be Issued. Since prepaid cards are yet another method to use an individual's money, the person will not be issued any credit by means of using this card. In order to use it effectively anywhere in the world, you have to load the money and get it linked with a co-branded prepaid card. Most of the people are likely to find the debit cards more appealing for the fact that they have an overdraft facility even as they agree to let them withdraw the required amount from their account only.
Using ATMs. Not all of the prepaid cards empower a bank customer to be able to withdraw their money through an ATM whereas debit cards do facilitate their users with this benefit.
Conclusively, co-branded prepaid cards are ideal for those who do not have bank accounts yet and will probably take to a loan to fulfill their needs. Others owning an account already and not wanting to exceed their limits can simply go ahead in opting for debit cards. Be sure to act wisely.
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Debit cards are a good option for those cardholders who already have bank accounts and will not be tempted to reach their expenditure limits. However, for teenagers who do not have bank accounts and will be tempted to take loan, co-branded prepaid cards are the right option. So make the right decision today in accordance to your requirements!. Unique version for reprint here: Debit Cards Vs. Prepaid Cards - Which Should You Choose?.
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