Prepaid debit card has been increasing in popularity because it is a practical alternative to using cash payment methods. Unlike a credit card, prepaid debit card is paid in advance, so spending is within your means. You add credits to your debit card by depositing money into it or adding funds to an account which your card can directly deduct money from. In this case, it should be linked to a bank account. These debit cards are generally issued by banks.

The competition for local banks and international credit card companies to provide a market for prepaid debit cards is continuously increasing. It was deemed a strategic move by Visa and Mastercard and they now provide a wide range of debit cards in addition to credit cards. Aside from prepaid debit Mastercard and prepaid Visa Debit cards, most local banks are also now presenting free prepaid debit cards in their list of products. Some attractive promotions flaunts ‘prepaid debit card no monthly fees’ or ‘prepaid debit cards no load fees’

Prepaid debit cards can be used to:

1. Purchase products or pay for a service,
2. Withdraw money using an ATM (Automated Teller Machine)

Because you use the card for cashless shopping, or even withdraw money from ATMs, they are sometimes called prepaid debit cash cards.

The prepaid type of debit card is fit for those who have difficulty in controlling their spending. The advantage of using this pre-loaded debit card is you can only spend the amount or value that your card has in store. These debit cards are reloadable anytime so you may also use these for recurring payments. A research shows that currently, more than 25 percent of transaction volume comes from debit cards and online payment schemes and can soon overtake cash as the primary method of payment.

Once you’ve loaded the card, you can use it as a normal credit card, or debit card. Most stores, restaurants and service providers accept this as a form of payment. In most countries, the debit cards are used freely in all forms of transactions.

Most debit card users are those who usually make payments and transfer money abroad. For personal reasons, an ample number of users transfer money to their friends and loved ones using the prepaid debit card. For companies who have clients based abroad, and with the increasing number of their international workers, this option is best. Prepaid debit card is a good way to avoid huge cutbacks from money transfers and international bank transfers. It also a faster way to send money or make payments instead of delivering cheques and other forms of payment. As an added convenience, it is easily reloadable every time you need to add funds for the card holder.

There are certain rules regarding the use of prepaid debit cards but these vary from one country to another. In some countries, the fees are shouldered by the merchants while in other areas, the charges are incurred solely by the customer each time they perform a debit card transaction.

People who are interested in prepaid debit cards may also find prepaid credit cards attractive.

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