A prepaid card, over the years, has grown to be among the most trusted forms of payment for both in-store and online purchases. The best prepaid cards are also considered to be an ideal travel companion for those who travel abroad on a consistent basis. They are also known to help travelers have a seamless travel experience.
There are many similarities between the best prepaid cards and credit and debit cards. However, prepaid cards have many features that are distinct from credit and debit cards. For instance, they must be loaded with a predetermined amount in order to be used for purchase transactions or ATM withdrawals.
It is quite likely that, like many people, you are considering getting a prepaid card or you are already looking into getting one. However, do you know how to get the most out of your prepaid card or do you even know the basics on how to use it? Below are answers to some of your frequently asked questions about prepaid cards:
Prepaid cards are regulated by a number of authorities, so what is the status of those regulations?
For prepaid cards that are provided by federally regulated financial institutions, the regulations concerning prepaid cards can vary depending on the location you live in as well as the issuer of the card. However, for prepaid cards that are available through federally regulated financial institutions, the regulations regarding prepaid cards cover them.
Before choosing a prepaid card, it would be wise to make sure that you know everything you can about it before making a decision about which one to choose. Most prepaid cards have their own websites that you can check out. Whenever you consider buying a prepaid card, make sure you do your research and find out as much as possible about that card.
How much is the activation fee and is it required in order for you to participate in the service?
There are some issuers that charge customers an activation fee before they can use their prepaid cards. In some cases, prepaid cardholders may be charged by the issuer based on the value of the card or a predefined fee associated with the card. This fee will, however, depend on the issuer and the prepaid card they choose.
Do prepaid cards have expiration dates?
Prepaid cards usually have no expiration dates, unless they are distributed as promotional cards. In some cases, prepaid cards may have an expiration date depending on the issuer. If you wish to renew your card, you should contact the issuer to find out whether there is an expiry date or if there will be any fees involved.
What are some prepaid card fees I should know about?
If a prepaid card comes with special features, the fees are usually determined by the provider. When a prepaid cardholder checks their balance, customizes the card, reloads money onto the card, buys goods online, or replaces a stolen or lost card, they may be charged a small fee.
Check with your prepaid card issuer to see if you need to pay an amount in order to cancel your card should you decide to do so. In addition to charging cardholders for overdraft fees or monthly maintenance fees, some prepaid card issuers may also charge cardholders if their cards are left dormant for a long period of time.
How do I report a lost or stolen prepaid card if it happens to me?
As a precaution, you are advised to make a report immediately to your card issuer if your prepaid card is lost or stolen. Most of the time, the issuer will transfer the balance of the stolen or lost card to the new card in the event that the card is lost or stolen.
It is also recommended that you check with your card issuer to see if there are any additional fees you may have to pay if you wish to replace the lost or stolen card, as you may have to pay additional fees.