Debit Card Vs Prepaid Card

A prepaid card is not the same as a debit card or a credit card. 
A debit card is connected to your bank account, and withdraws money directly from your checking account to pay for your electronic purchases. 
Often times, payments that overdraft the account will be covered by the bank, but you are then required to pay the difference as well as an overdraft fee.
A credit card is a card that allows you access to borrowed money. This is money that is not yours. Depending on your credit score and history, your card will have a credit limit, usually $500-$5000, and you will only be allowed to spend up to that limit. You then pay monthly installments on the balance of the card, plus interest. This account is generally not linked to your checking or savings accounts.

A prepaid card is a card that can only be used when you have paid, or ‘loaded’, money in advance; a prepaid card is generally not connected to your bank account whatsoever. Instead, you ‘load’ a predetermined amount onto the prepaid card, and can only sped the amount that has already been loaded onto the card. If a payment exceeds the fund amount in the prepaid account, the payment will be declined. 

There are a few customizable options for a prepaid card that should be considered as well. Some prepaid cards are reloadable, and others are not; some allow you to withdraw cash from ATM’s, while others will not. These cards generally also come with less insurance and protection than debit or credit cards in the case of the prepaid card being lost or destroyed. Speak with your banker about choosing a prepaid card that is right for you. 

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