djamal-soft
السبت، 20 سبتمبر 2014
Nowadays, customers can choose from various payments options. Of all the credit cards and other plastic money available, debit and co-branded prepaid cards have some similarities between them. Card users get confused between these two cards and have a difficult time making a choice. If you are facing the same problem, read on to find out about how to select between the two:
Issuance of Credit. As prepaid cards are a means of using one's own money, no credit is issued with the use of this card. You can simply load your money and use it via a co-branded prepaid card, all over the world. On the other hand, although debit cards allow bank customer to withdraw amounts from their own accounts, there may be an overdraft facility provided by some banks.
Credit Check for Card Eligibility. In case of prepaid cards, no credit check is performed before issuing a card to the customer. However, in case of debit cards, banks will usually perform a credit check to ensure the credit score and rating of the account holder before issuing a card to 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.
Can These be Used at ATMs? At the ATMs, a debit card can be used but a prepaid card can't. There are really few prepaid cards that provide users the facility to withdraw cash from an ATM.
Overall, debit and prepaid cards both have their differences but are similar in their usage and cancellation policy. This means that both cards can be used anywhere in the world, depending upon the logos that are present on them. Both of these cards can also be cancelled with ease if lost or stolen.
Issuance of Credit. As prepaid cards are a means of using one's own money, no credit is issued with the use of this card. You can simply load your money and use it via a co-branded prepaid card, all over the world. On the other hand, although debit cards allow bank customer to withdraw amounts from their own accounts, there may be an overdraft facility provided by some banks.
Credit Check for Card Eligibility. In case of prepaid cards, no credit check is performed before issuing a card to the customer. However, in case of debit cards, banks will usually perform a credit check to ensure the credit score and rating of the account holder before issuing a card to 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.
Can These be Used at ATMs? At the ATMs, a debit card can be used but a prepaid card can't. There are really few prepaid cards that provide users the facility to withdraw cash from an ATM.
Overall, debit and prepaid cards both have their differences but are similar in their usage and cancellation policy. This means that both cards can be used anywhere in the world, depending upon the logos that are present on them. Both of these cards can also be cancelled with ease if lost or stolen.
About the Author:
Debit cards are a good option for those cardholders who already have bank accounts and will not be tempted to exceed their expenditure limits. On the other side, for youngsters who do not have bank accounts and will be tempted to take loan, co-branded prepaid cards are the best option. So make the right decision today in accordance to your requirements!
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