The experts predict the use of prepaid will explode in 2012. What is it and what are the benefits?
Prepaid cards can look and be used very like credit and debit cards. But instead of getting a bill at the end of the month, or the money coming from your bank account, you ‘load’ money onto the card either online or at a local shop (like you would with mobile top up). There is a small fee for the card but no interest charges or other hidden costs. You can then use the card anywhere that takes credit cards.
To get a prepaid card you don’t need to have a bank account or a good credit history. You can even have one if you’ve been bankrupt or are under 18.
Prepaid is a safer and often cheaper way to pay online. Even if the website is hacked the most anyone can steal is the amount on your card. Some companies charge high fees for taking payment with debit and credit cards but these don’t apply to prepaid. These cards are particularly great for children who play online games as it’s much safer than using your credit card!
If you use a prepaid card when going on holiday you can save money on exchange rates (they stay at the competitive rate you paid when you loaded the card) and you avoid transaction fees which can be hidden and very high.
However prepaid is not just available in cards, it can take many forms and has been around since postage stamps. It will soon even be available through your phone.
Prepaid cards are available from many members of Global Prepaid Exchange. Like with any financial product check you’re using a reputable company such as any that are members of Global Prepaid Exchange.
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