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.
Will There Be Any Credit Issuance? There is no credit issuance with the use of a prepaid card. It is a simple process of loading your money and using it through a co-branding prepaid card across the world. However, there is an overdraft facility for debit cards by the banks even though debit card holders can easily withdraw money from their accounts.
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.
Paying Your Interest You will not be allowed to borrow money off your prepaid cards. Do the math and you will know that they will, as a result of this, not be having any interest for you to pay. The debit cards, in their dissimilarity, make a point of charging interest with zero interest-free periods if the person has managed to achieve their overdue overdrafts.
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. In conclusion, prepaid and debit cards have their similarities and differences.
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.
Debit cards are a good option for those individuals who already have bank accounts and will not be tempted to exceed 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 best option. So make the right selection today in accordance to your needs!
Will There Be Any Credit Issuance? There is no credit issuance with the use of a prepaid card. It is a simple process of loading your money and using it through a co-branding prepaid card across the world. However, there is an overdraft facility for debit cards by the banks even though debit card holders can easily withdraw money from their accounts.
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.
Paying Your Interest You will not be allowed to borrow money off your prepaid cards. Do the math and you will know that they will, as a result of this, not be having any interest for you to pay. The debit cards, in their dissimilarity, make a point of charging interest with zero interest-free periods if the person has managed to achieve their overdue overdrafts.
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. In conclusion, prepaid and debit cards have their similarities and differences.
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.
Debit cards are a good option for those individuals who already have bank accounts and will not be tempted to exceed 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 best option. So make the right selection today in accordance to your needs!
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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 maintaining an account already and not wanting to overdraft their limits can simply go ahead in opting for VISA card program and debit cards. Be sure to act wisely.
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