Lately, prepaid cards, have become increasingly more popular. Many retailers offer 'prepaid gift cards' - may be you have already received one! But prepaid payment cards are certainly not limited to gift cards. Now individuals (even those with bad credit history or who happened to be presently unemployed) can have access to a prepaid card. There are prepaid cards for everything, from sending money to friends and family and friends, to managing travel funds, to shopping over the Internet. Prepaid Cards are a safe payment alternative. Compare: Prepaid Cards - Bank Debit Cards & Credit Cards Prepaid Debit Cards - key features: *No credit checks due to the fact that you are fornally requesting for a line of credit (so no borrowing and no debt). *There are no interest charges. *No employment verification carried out. *Only some fees may be charged depending on the card. (Just read T and Cs carefully where they will be clearly explained.) *You only need to disclose basic customer details. *If under 18, OK. *Can be used worldwide,wherever Visa - MasterCard and/or Maestro are accepted, depending on the brand mark on your card. *Can be used at ATMs. *Usually, includes free bill payment service meaning that you can pay anyone online or over the phone. *Can be cancelled/blocked if stolen or lost. *Many also offer free rewards programs (you can redeem your points for free music downloads, purchases of gift items, etc.) Bank Debit Cards: *Credit verification to open the bank account to which the card is linked. *Account might have an overdraft facility. *Interest charges usually applies on money borrowed against an overdraft and with no interest free period. *Fees if you go over an agreed overdraft. *Full customer information is required. *You can use card wherever Visa - MasterCard and/or Maestro are accepted, depending on the brand mark on your card. *Can be used at ATMs. *May be cancelled/blocked if lost or stolen. Credit Cards - Main features: *Credit check to approve card, decide credit limit and set interest rate. *Line of credit that can be increased over time. *Interest charges on money borrowed against the credit limit, if there is an outstanding balance after the interest-free period. *Charges such as late payment fees, over-limit fees, cash advance fees, foreign exchange charges, duplicate statement fees and nonactivity fees. These are explained in the T and Cs for each card product. *Require full customer information. *over 18. *Can be used anywhere Visa or MasterCard is accepted. *Can be used at an ATM. *Can be cancelled/blocked if lost or stolen. Who can use a Prepaid Card? Prepaid cards can be obtained by an individual who has less than perfect credit or does not qualify for a bank account. A person who does not want to carry large amounts of cash. Backpackers and Seasonal workers. A person who does not wish to pay credit card interest charges. Parents who want to give their children secure and limited spending capabilities. Cardholders who would like to budget their finances. Overseas Travellers as a replacement for travellers cheques. Employees who wish to disperse funds onto these cards, decreasing payroll distribution costs, simplifying bank reconciliation, reducing fraud and eliminating lost cheque cancellation and replacement. Low-cost money transfers. It's simple to add an additional card which may be sent to a relative or friend within your country or overseas. So, Prepaid Cards can be secure substitute for cash, cheques and gift certificates. The advantages of using prepaid cards are numerous. Including being available to almost anyone, even individuals who do not qualify for a regular credit card.
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