Prepaid Debit Card: How Safe Is This New Innovation

Debit Card

Research shows that more than 50% of Americans were using prepaid cards in 2015. When it comes to buying prepaid debit cards, there is a lot to choose from. You can also learn more here about the differences of all these cards. Read this article to find out more information about the best prepaid debit cards of 2018. Also, we are here to tell you the top 7 things you should know about prepaid cards.

7 Things you should know about prepaid debit cards: –

1. They work as a bank alternative: – Prepaid debit cards can help you ease out the card-based processes without the inconvenience of dealing with the bank. They also have an account and routing numbers, so you can get the paycheck deposited into your card easily.

2. You do not need any credit: – These cards are basically made for people with bad credit history, so you can get one without any credit. You cannot spend beyond your means using this debit card, which makes it easier for people to recover from debt. Since it is not dependent on your credit history, it will also be useless for building a good credit. Prepaid debit cards are the best things to use in places where cash is not accepted and to avoid getting credit card debt.

3. You can minimize the fees: – Most of these cards are not fee-heavy. The fees vary depending on what card you purchase. For example, American Express Prepaid Cards charge 2 USD for ATM withdrawals and that is the only fee they charge. You can check Financesrule for How to Apply/Check for RBL Credit Card Status Online.

4. No protections: They may look like a usual debit card, but they do not offer any protection like the usual debit cards attached to your bank account. As per the Consumers Union, in case if there is any fraud, theft or error, they do not offer any protection that banks offer to normal debit cards, so be careful because someone might steal your prepaid debit card and may use it for any fraudulent purchases. Chances are you will not get your money back. In some cases, you might get the money back though.

5. They can help you manage money: It is not connected to your bank account, so you can use it to make a budget. Put the money onto the card at the beginning of the month and stick to your budget. For example, If you made a budget of your groceries, then put that money and use only that amount, you cannot spend any more. It can help you stick to your budget and save a lot of money.

6. Fees on prepaid cards: Unlike your usual cards, you do not have to pay for any interest, but there are often some hidden fees included. Prepaid cards charge you fees from setup to reloading in the card. However, by comparison shopping, you can limit the fees as long as you keep the minimum balance on the card or make direct deposits. For example, Walmart waives a 5 USD monthly fee if you have the paybacks or government benefits deposited into your account directly. Most of the large banks charge low fees.

7. You can reload the money using these: You have 5 main options for putting more cash into your card:

  1. Transfer money from your PayPal account.
  2. Direct deposit your paycheck onto your card.
  3. Transfer money from your bank account.
  4. Use a reload card like MoneyPak
  5. Reload the card in a retail store like Walmart.


There are 7 things you should remember before getting a prepaid debit card. Remember there is no hassle of having a good credit history, but know the risks and take steps carefully. Good luck!


Hi, I'm Raj Hirvate & I am a Tech Blogger from India. I like to post about technology, gadgets, How-to, Errors and product reviews to the readers of my website. Apart from blogging i'm a big Anime fan I Love Watching Naruto, Jujutsu Kaisen, One piece, Death Note and any upcoming animes.