There are many payment options available to consumers today. Amid the world of plastic money, two cards, which have a great similarity between them, are debit and co-branded prepaid cards. These two cards can often confuse users and make them uncertain about which one to opt for. If you are facing a similar dilemma, keep reading to discover some facts about both of these cards:
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.
Credit Check for Card Eligibility In case of prepaid cards, no credit check is performed before issuing a card to the customer. However, in case of debit cards, banks will usually perform a credit check to ensure the credit score and rating of the account holder before issuing a card to them.
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.
Card Charges Prepaid credit cards are often charged with a small opening fees or maintenance charges, especially in cases of co-branded prepaid cards. On the other hand, debit cards with be charged with any fees applicable to the bank account, as well as any penalty fees applied to overdrafts that have become overdue.
Do They Require Customer Information? Complete background information of the customer is required in order to issue a debit card. However, in case of prepaid cards, merely a few basic details are needed from the customer.
ATM Usage Although debit cards can be used at ATMs, the same cannot be said for prepaid cards. There are very few prepaid cards, which have this facility available of being able to withdraw money from your account via an ATM.
Most of the people are likely to find the debit cards more appealing for the fact that they have an overdraft facility even as they agree to let them withdraw the required amount from their account only.
Debit cards are a good option for those individuals who already have bank accounts and will not be tempted to exceed their expenditure limits. However, for teenagers who do not have bank accounts and will be tempted to take loan, co-branded prepaid cards are the best option. So make the right selection today in accordance to your needs!
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.
Credit Check for Card Eligibility In case of prepaid cards, no credit check is performed before issuing a card to the customer. However, in case of debit cards, banks will usually perform a credit check to ensure the credit score and rating of the account holder before issuing a card to them.
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.
Card Charges Prepaid credit cards are often charged with a small opening fees or maintenance charges, especially in cases of co-branded prepaid cards. On the other hand, debit cards with be charged with any fees applicable to the bank account, as well as any penalty fees applied to overdrafts that have become overdue.
Do They Require Customer Information? Complete background information of the customer is required in order to issue a debit card. However, in case of prepaid cards, merely a few basic details are needed from the customer.
ATM Usage Although debit cards can be used at ATMs, the same cannot be said for prepaid cards. There are very few prepaid cards, which have this facility available of being able to withdraw money from your account via an ATM.
Most of the people are likely to find the debit cards more appealing for the fact that they have an overdraft facility even as they agree to let them withdraw the required amount from their account only.
Debit cards are a good option for those individuals who already have bank accounts and will not be tempted to exceed their expenditure limits. However, for teenagers who do not have bank accounts and will be tempted to take loan, co-branded prepaid cards are the best option. So make the right selection today in accordance to your needs!
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Conclusively, co-branded prepaid cards are ideal for people who do not have bank accounts yet and will obviously take to a loan to fulfill their needs. Others maintaining an account already and not wanting to exceed their limits can simply go ahead in opting for VISA card program and debit cards. Be sure to act wisely.. This article, Debit Cards Vs. Prepaid Cards - Which To Choose? is released under a creative commons attribution license.
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