Much of modern life revolves around the use of credit and debit cards. Plastic money is used to buy tickets, pay tuition fees, buy goods and services, and many other purposes. There are a number of credit and debit cards to choose from on the market.
What is a debit card?
A debit card is a card that enables you to obtain your own money by arranging it for any fees you may incur. You can only spend money on this card if you have enough money in your savings account. With this type of card, instead of taking out cash, you issue a debit card and pay with the money that's already in your account.
It's not like a credit card where you buy the system now and pay later. In this case, you are only shopping with your own money and no credit. On the other hand, to make its appearance more appealing then you are able to style your own debit card hassle-free. There are different types of debit cards. Let us discuss some of them.
Image Source: Google
Prepaid Debit Card:
A prepaid debit card is similar to a secured credit card. These cards are usually marked with the VISA or MasterCard logo. This card is accepted worldwide and works just like your bank debit card. As with your regular debit card, payments are made from the balance in your account. Unlike a credit card, you don't have to make monthly payments on your card. These cards are issued fairly easily.
How do we use a prepaid debit card?
Prepaid debit cards issued by VISA or MasterCard do not require a recipient or a good credit rating to qualify for a debit card. The best part is that you can fund your account via ATM, telephone, or online. As these cards are accepted worldwide, they can be used for a variety of expenses, from shopping for clothes and groceries and so on.
Lastly, prepaid debit cards are not ideal for those looking to get their credit back because cardholder transactions are not reported to credit agencies.