Nowadays, customers can choose from various payments options. Of all the credit cards and other plastic money available, debit and co-branded prepaid cards have some similarities between them. Card users get confused between these two cards and have a difficult time making a choice. If you are facing the same problem, read on to find out about how to select between the two:
Issuance of Credit As prepaid cards are a means of using one's own money, no credit is issued with the use of this card. You can simply load your money and use it via a co-branded prepaid card, all over the world. On the other hand, although debit cards allow bank customer to withdraw amounts from their own accounts, there may be an overdraft facility provided by some banks.
Information on Customers A prepaid card issuance would need less and some very basic information regarding their customers. A debit card though would call for entire, much detailed, background information.
Interest Fees Prepaid cards do not allow people to borrow money and thus, no it nest is involved. However, in case of overdue overdrafts, debit cards are charged with interest fees with no interest-free periods.
Card Fee One of the best things about prepaid credit cards (especially the co-brand prepaid cards) is that they require only a minimum maintenance or opening premium while debit cards cater to a relatively different scenario. Their fee is in accordance with the bank account and will also include the costs of penalty for having overdrafts long overdue.
Do They Require Customer Information? Complete background information of the customer is required in order to issue a debit card. However, in case of prepaid cards, merely a few basic details are needed from the customer.
ATM Usage Although debit cards can be used at ATMs, the same cannot be said for prepaid cards. There are very few prepaid cards, which have this facility available of being able to withdraw money from your account via an ATM.
The cancellation and usage policy is almost the same for both. This indicates that these cards can easily be utilized all around the globe and can be cancelled in case of theft or loss.
Using ATMs Not all of the prepaid cards empower a bank customer to be able to withdraw their money through an ATM whereas debit cards do facilitate their users with this benefit.
Issuance of Credit As prepaid cards are a means of using one's own money, no credit is issued with the use of this card. You can simply load your money and use it via a co-branded prepaid card, all over the world. On the other hand, although debit cards allow bank customer to withdraw amounts from their own accounts, there may be an overdraft facility provided by some banks.
Information on Customers A prepaid card issuance would need less and some very basic information regarding their customers. A debit card though would call for entire, much detailed, background information.
Interest Fees Prepaid cards do not allow people to borrow money and thus, no it nest is involved. However, in case of overdue overdrafts, debit cards are charged with interest fees with no interest-free periods.
Card Fee One of the best things about prepaid credit cards (especially the co-brand prepaid cards) is that they require only a minimum maintenance or opening premium while debit cards cater to a relatively different scenario. Their fee is in accordance with the bank account and will also include the costs of penalty for having overdrafts long overdue.
Do They Require Customer Information? Complete background information of the customer is required in order to issue a debit card. However, in case of prepaid cards, merely a few basic details are needed from the customer.
ATM Usage Although debit cards can be used at ATMs, the same cannot be said for prepaid cards. There are very few prepaid cards, which have this facility available of being able to withdraw money from your account via an ATM.
The cancellation and usage policy is almost the same for both. This indicates that these cards can easily be utilized all around the globe and can be cancelled in case of theft or loss.
Using ATMs Not all of the prepaid cards empower a bank customer to be able to withdraw their money through an ATM whereas debit cards do facilitate their users with this benefit.
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Conclusively, co-branded prepaid cards are ideal for those who do not have bank accounts yet and will obviously take to a loan to fulfill their needs. Others maintaining an account already and not wanting to overdraft their limits can simply go ahead in opting for VISA card program and debit cards. Be sure to act wisely.. This article, Prepaid Cards Or Debit Cards: Is Any One Of Them Better? is released under a creative commons attribution license.
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