Nowadays there
are many options to carrying cash, and the one choice that is
gaining popularity is the Prepaid Debit Card, also known as
the Prepaid Credit Card. Although these debit cards are being
advertised on television, radio and the internet, their use and
purpose is clouded in mystery. We will explain what they are and how
to use the prepaid debit card.
Terms to Know
• Branding - Adding Visa or MasterCard logo to
a debit card, thereby backing the debit card with the benefits and
security of these credit card companies.
• Debit -
Deducting from an existing balance.
• Load - Adding
money to the balance of the card.
• Reload -
Ability to add more money to the balance once the original 'loaded'
balance has been depleted.
Prepaid Credit Card
First, we will clear up the most common
misconception with these cards. They are not credit cards in the
traditional sense. A "traditional" credit card is a card that draws
off a credit line balance with each use/purchase. A prepaid debit
card is a card with either a Visa or MasterCard logo and can be used
to pay for goods or services anywhere Visa or MasterCard is
accepted, however all purchases are drawn from a prepaid balance
that you have loaded onto the card. Once the balance has reached $0,
you are no longer able to use the card for purchasing until the
balance is reloaded.
