About Prepaid Credit Cards

Many people have been asking, “What’s a prepaid credit card?” A prepaid credit card is a credit card that you load money onto before using it. This is much like a pay-as-you-go mobile telephone, and they’re the latest thing, especially among teenagers.

Many teens want the independence and responsibility that comes with having a credit card, but their wary parents are wondering if they’re ready for that jump. Now, parents of teenagers can rest easy knowing that, with a prepaid credit card, they and their children are going to be financially secure.

But the good thing is that prepaid credit cards aren’t just for teenagers or teenager’s parents; they’re for anyone. Even if you have a normal credit card, having a prepaid credit card is just another convenience you can have in your life, and another barrier to stop fraudsters getting into your finances.

There are several ways to recharge a prepaid credit card. However, one of the most common ways is through the internet. You can do a direct debit from your bank account and it usually clears within a few days. It only requires you to sit behind your computer and click a few buttons. Another option for recharge is going into the credit card issuer’s establishment (or one of their affiliates) and loading the card with cash. Basically, any of the mainstream payment methods can be used to recharge one of the different varieties of prepaid credit cards. So when choosing your prepaid credit card provider, it might be good to consider which recharge method works best for you.

The loading the money onto the prepaid credit card is probably where the differences between a normal credit card and a prepaid credit card lie. A prepaid credit card is essentially the same as a normal credit card. It can be used at the point of sale to make purchases, it can be used online, with PayPal, on eBay, Amazon, or wherever credit cards are accepted.

Depending on what type of credit card you get, it will be hooked up onto that respective provider’s credit network, so if you have a prepaid Visa credit card, it uses exactly the same transaction network as a normal credit card. This means it will work just like a normal credit card. You can use it wherever that type of credit card is accepted, meaning when you flying international you can take your prepaid credit card and it will work.

The beauty of a prepaid credit card is, if it is lost or stolen or if someone makes a counterfeit copy of your card, the fraudsters only haves access to the money that you’ve loaded onto your account. This means that, if your card was to get stolen or counterfeited, the thieves could only get as much as what was loaded on there, hence making sure your hard earned money is safe.

A prepaid credit card is the latest and greatest product available in the credit card market, and a must have for the 21st century shopper.

Write to Julie Williams at julie@creditdonkey.com