In among the many different options to pay by means of plastic money, people often end up being confused on debit and co-branded prepaid cards. They are way too similar both in their cancellation policy as well as their usage for most of them to be really sure of which one they should choose from. So, you may exploit them worldwide and they may be cancelled when stolen or lost with ease. However, their logos make them distinct. This article addresses those concerns to make selection for you easier.
Will There Be Any Credit Issuance? There is no credit issuance with the use of a prepaid card. It is a simple process of loading your money and using it through a co-branding prepaid card across the world. However, there is an overdraft facility for debit cards by the banks even though debit card holders can easily withdraw money from their accounts.
Cardholder Eligibility in Terms of a Credit Check. It seems that banks issuing prepaid cards do not make their customers suffer much. There is absolutely no credit check. When it comes to debit cards, on the other hand, they would go for one to certify that their account holder does in fact have the right credit score and rating.
Do They Charge Interest Fees? There is no interest involved in prepaid cards as users are not allowed to borrow money. However, debit cards charge these interest fees for overdue overdrafts and there is no interest-free period.
Paying Your Interest. You will not be allowed to borrow money off your prepaid cards. Do the math and you will know that they will, as a result of this, not be having any interest for you to pay. The debit cards, in their dissimilarity, make a point of charging interest with zero interest-free periods if the person has managed to achieve their overdue overdrafts.
Customer Information. The issuance of a debit card requires the complete background details and information, regarding the bank customer. On the other hand, prepaid cards can easily be issued with very little and basic information about the customer.
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.
In conclusion, prepaid and debit cards have their similarities and differences. 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.
Will There Be Any Credit Issuance? There is no credit issuance with the use of a prepaid card. It is a simple process of loading your money and using it through a co-branding prepaid card across the world. However, there is an overdraft facility for debit cards by the banks even though debit card holders can easily withdraw money from their accounts.
Cardholder Eligibility in Terms of a Credit Check. It seems that banks issuing prepaid cards do not make their customers suffer much. There is absolutely no credit check. When it comes to debit cards, on the other hand, they would go for one to certify that their account holder does in fact have the right credit score and rating.
Do They Charge Interest Fees? There is no interest involved in prepaid cards as users are not allowed to borrow money. However, debit cards charge these interest fees for overdue overdrafts and there is no interest-free period.
Paying Your Interest. You will not be allowed to borrow money off your prepaid cards. Do the math and you will know that they will, as a result of this, not be having any interest for you to pay. The debit cards, in their dissimilarity, make a point of charging interest with zero interest-free periods if the person has managed to achieve their overdue overdrafts.
Customer Information. The issuance of a debit card requires the complete background details and information, regarding the bank customer. On the other hand, prepaid cards can easily be issued with very little and basic information about the customer.
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.
In conclusion, prepaid and debit cards have their similarities and differences. 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.
About the Author:
Debit cards are a good option for those customers who already have bank accounts and will not be tempted to exceed their expenditure limits. However, for youngsters who do not have bank accounts and will be tempted to take credit, co-branded prepaid cards are the best option. So make the right selection today in accordance to your needs!. This article, Prepaid Cards Or Debit Cards - Which One To Select? is released under a creative commons attribution license.
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