Chosen cards:
select
or
Best Credit Offers For You
Limited Credit Offers
Credit Card Companies
Credit Cards by Rewards
Debit Cards
Credit Cards by Bank
ONLINE CREDIT RESOURCES
Ask Your Question Now
Ask Your Question Now
Horizon Card Services Horizon Gold Credit Card

Why Prepaid Cards Are The Hottest Financial Trend Going

[Wednesday, March 22nd, 2017]

Prepaid cards are suddenly everywhere, it seems. Teenagers have them, college kids have them, parents have them, and even grandparents are using them.

If you don’t know what a prepaid card is, however, you’re not alone. Although the cards are more and more ubiquitous, there is still some confusion about how exactly they work, and what the difference is between them and other types of credit or debit cards.

Here, then, is a quick primer on what prepaid cards are, how they work, and why they’re the hottest thing going right now.

What is a prepaid card?

A prepaid card is a reloadable payment card that’s similar to a gift card, in that it has money already on it, ready to be spent. You can use it anywhere that accepts credit cards as a form of payment, as long as they accept the issuing network of your particular prepaid card. American Express, Visa, and Mastercard issue prepaid cards, among others. The difference between prepaid cards and gift cards is that in most cases, gift cards can’t be refilled after you spend their value. Also, gift cards are generally issued by a specific retailer or store, and can only be used there.

How does a prepaid card work?

A prepaid card functions in many ways like a bank account. You can add funds to it by direct deposit from your employer, or have government payments or tax refunds credited to them. You can also pay bills using your prepaid card, or get cash from an ATM. When your prepaid card runs low, you simply add more funds to it, either by going to a location where you can put cash onto the card, or my transferring money from a bank account, savings account, or even a credit card onto the prepaid card.

Why are they so popular?

Many people like using these cards as sort of “starter credit cards” for their teenagers, to help them learn how to use a payment card. They are not actually credit cards, but are used in a similar way, helping kids become accustomed to sliding a payment card in a point-of-sale terminal and keeping track of balances.

Some people are also using them in place of traditional bank accounts. Using a prepaid card can help you avoid fees commonly charged by banks for regular checking accounts.

See also

Q: The Hottest Payment Trends To Watch For In 2018

Every year, there’s something new in the payment space, whether it’s an amazing new travel rewards credit card, free credit score reports for cardholders, or new ways to utilize mobile payment technology.

more ››
Q: A Beginner’s Guide To Prepaid Cards

Question: When is a credit card not a credit card?
Answer: When it’s a prepaid card.

Do you know the ins and outs of prepaid cards? If not – if, perhaps, you aren’t even entirely sure what a prepaid card is – then this article will tell you all you need to know.

more ››
Q: The 4 Types of Cards Most People Carry

Most of us have wallets packed with plastic—but what exactly is it that we’re carrying around, anyway? It’s not just credit cards, although the average household has more than three credit card accounts.

more ››
Q: Prepaid Cards: A Guide to the Different Types

When it comes to prepaid cards, it’s not unusual to get a little confused as to the different types out there. Prepaid cards are more popular than ever and no two are exactly the same.

more ››
Q: 5 Things You Can Do With a Prepaid Card

Prepaid cards are increasing in popularity, with more and more people becoming wise to the benefits of using cards instead of cash. But even if you’re already a pro at using prepaid cards, you may not know all the things you can do with it.

more ››
Copyright © 2004-2018
Low-Interest-Rate-Visa-Credit-Cards.Com.
All Rights Reserved.
Read the online credit card application for details and to review the credit card's terms and conditions. Keep in mind that information presented without warranty on this website and subject to change. This website may be compensated by credit card issuers when visitors apply for a credit card through this website.
Low-Interest-Rate-Visa-Credit-Cards.com is an independent, advertising-supported web site. The credit offers that appear on this site are from companies from which Low-Interest-Rate-Visa-Credit-Cards.com receives compensation. This compensation may have an impact on how and where credit products appear on our site, including, for example, the order in which they may be listed on our site pages. Low-Interest-Rate-Visa-Credit-Cards.com does not review or offer all available credit products.
* The Low-Interest-Rate-Visa-Credit-Cards.com webpage is a free service and an information resource for credit cards and financial products and services available to eligible United States consumers. Low-Interest-Rate-Visa-Credit-Cards.com does not offer any warranties and is not a direct service. There are no guarantees for approval or offers when applying for a credit card. Please refer to the application if you would like more information on each credit card. When you click "Apply" for a particular credit card, please take the time to review the terms and conditions of the product/service at the issuer's website. All logos on the Low-Interest-Rate-Visa-Credit-Cards.com website are property of their respective owners.
Disclaimer: This editorial content is not provided or commissioned by the credit card issuer. Opinions expressed here are the author's alone, not those of the credit card issuer, and have not been reviewed, approved or otherwise endorsed by the credit card issuer. Reasonable efforts are made to present accurate info, however all info is presented without warranty. Consult a card's issuing bank for terms & conditions.
Disclosure: Not an access card.