A few months ago, we told you all about the pros and cons of credit, debit, and prepaid cards. As we explained then, of the 4 types of cards, reloadable debit cards were one of the most attractive options available due to their ability to be used by virtually anyone. Today, the use of prepaid debit cards is exploding in popularity for the same reason. For example, did you know Americans spent nearly $80 billion on prepaid debit cards last year? That’s triple the amount from just 5 years ago. In fact, some experts predict that number will eclipse the $165 billion mark by 2015. With reloadable debit cards becoming more and more popular, we’ll give you an in-depth look at some of the ways they can benefit YOU.
As mentioned before, reloadable debit cards can be used by virtually anyone, anywhere, and at anytime. Well, as long as you’re over 18 and have a valid government I.D., that is. For those who’ve been told they’re “unbankable” due to poor credit, prepaid reloadable debit cards are the perfect option because prepaid cards don’t check your credit. And, like any regular debit card, prepaid cards are accepted in stores, online, and worldwide.
Pay Bills Online
For those who aren’t eligible for a regular checking account, reloadable debits cards make it very easy to pay bills and even receive direct payroll deposits online. Instead of showing up in person or having to jump through hoops to make a non-cash transaction, reloadable debit cards not only make it easier to pay bills, they can also lower your transaction costs and help save time spent managing finances.
Mobile Money Management
As mobile banking features like remote deposit capture and Popmoney become more and more popular, reloadable debit cards have started to make the mobile banking shift as well. Using a smart phone, reloadable debit card users can deposit checks and manage balances with just the swipe of a finger.
Reloadable debit cards aren’t just appealing to those without access to a checking account. Today, more and more people are using these cards in conjunction with their checking account to help manage their spending. Unlike a regular debit card, reloadable card accounts can’t be overdrawn, and can also provide a useful learning tool for parents teaching the importance of saving and spending to their children. In fact, many parents are starting to use reloadable debit cards as a safer cash alternative to pay their kids’ allowances, or send their college student money while he or she is away at school.
One of the main reasons we use debit and credit cards today is because they provide a safer alternative to carrying around wads of cash in your pockets. However, if your debit or credit card is stolen, a thief can do major damage to not only bank account, but also your credit score. If a reloadable debit card is stolen, all losses are limited to the amount of cash available on the card at that time. In addition, as reloadable debit cards rise in popularity, many cards now come with various levels of protection against theft. For example, American Express will actually replace any funds from stolen, lost, or fraudulently used cards.
Though reloadable debit cards may not provide the complete set of features a checking account comes with, the features they do provide make them an attractive option for people everywhere. Whether you’re looking for an alternative to a bank account, a better way to manage your spending, or looking for a safer way to give money to your kids, reloadable debit cards are the way to go.
For more information about reloadable debit cards, including getting started with one of your own, contact your local FNB branch today.