Prepaid Card
Card loaded with funds in advance; spending limited to available balance.
Detailed Description
Prepaid Card
What is a prepaid card?
A prepaid card is a payment card loaded with a specific amount of money for purchases until the balance is depleted.
How do prepaid cards differ from credit cards?
Prepaid cards must be preloaded with funds, while credit cards allow users to borrow money up to a limit.
What are some common types of prepaid cards?
Common types include General Purpose Reloadable cards, gift cards, payroll cards, travel cards, and government benefit cards.
What are the advantages of using prepaid cards?
Advantages include budget control, no credit checks, safety, wide acceptance, and convenience for various transactions.
What fees might be associated with prepaid cards?
Fees can include activation fees, reload fees, monthly maintenance fees, transaction fees, and inactivity fees.