Pre-paid cards are great for debt-free spending - The Economic Times

Pre-paid cards are great for debt-free spending - The Economic Times
In today's society, the convenience, flexibility, security and benefits that payment cards offer have made them immensely popular. In addition to credit and debit card ., prepaid cards have also been steadily gaining in popularity.

What are prepaid cards?:

A prepaid card looks like a classic credit card , but works more like a debit card. There are no finance fees or interest since charges are deducted from a balance that you pre-pay. Coupled with guaranteed approval and the ability to withdraw money from ATMs, a pre-paid card is a great option for many consumers.

The concept of prepaid cards is really very simple. You open an account and “pre-load” the card with cash upfront, similar to a pre-paid calling card.

Once the balance is consumed by charges or ATM cash withdrawals, the card must be recharged with more funds via a cash deposit or wire transfer. In this way, you’ll never have any problems with spending more money than you can afford, and you avoid costly interest charges."