Prepaid Cards – All you want to know

Prepaid cards have significantly changed the way individuals pay for their spending on a daily basis. Most individuals tend to pay by using their cards rather than cash. Prepaid cards are very similar to debit cards and credit cards – in the way they look.

Difference between a Prepaid Card and a Debit Card

A Prepaid card is very different from a debit card as it is not linked to any bank account, therefore, you will not be able to avail overdraft facilities. 

Difference between a Prepaid Card and a Credit Card

A Prepaid card is different from a credit card as the money must be pre-loaded in a prepaid card and only the available money can be spent.

Similarities between a Prepaid Card and a Debit/Credit Card?

Prepaid cards come with the same convenience of use. They are also accepted in all places where debit cards and credit cards are accepted.

Prepaid Cards

Features

• Prepaid cards help in controlling spending. You will be able to set a budget and reload the card so that you can spend within the budget.
• Most prepaid cards can be used to withdraw money at ATMs.
• Individuals who have a bad credit score can also opt for a prepaid card.
• Goods and services can be bought without the need for cash transactions.
•  You can carry a prepaid traveller’s card instead of carrying cash, if you are travelling abroad.
• In the scenario of any fraudulent charges, it can be reported, and the money will be refunded back to the account.

There are several banks which issue Prepaid Cards in India. We can showcase the top banks from the list:

Types of Prepaid Cards

There are broadly three categories of Prepaid cards which are listed below:

These prepaid card categories will be explained thoroughly in future posts.

Please read other posts too:

FAQ’s