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Prepaid Debit Cards

Prepaid Debit Cards

Prepaid debit cards offer the convenience of a debit or credit card, while giving users a large amount of control over their spending. Prepaid card users can load money onto their card and then use the card as they would a bank-issued debit card until the balance is gone. The main advantage of prepaid cards is that they help to control spending because card-holders cannot spend more than the balance on their card. This takes away any worries about overdrafts that come with using a debit card that withdraws money directly from a checking account. Since there are no finance charges or interest payments associated with this card, it is usually cheaper than a regular credit card. However, there are fees associated with prepaid debit cards. Some cards charge users to reload their balance, while others charge a monthly fee that is usually between $4.95-$9.95.