Prepaid Cards – How Do They Work

A prepaid card is a debit card. This means you first need to deposit money on your card before you can make purchases with it. It is not a credit card where you are extended a card with ‘borrowed’ money to spend.

But this card will work just like a major Visa or MasterCard. You can use it for purchases or to pay bills online and over the phone. It can be used to: rent a car, buy gas at the pump, rent a hotel room… And your card will be covered by a Zero Liability Policy which will keep your money safe in case your card is used fraudulently or it is lost.

How To Load Money

There are a variety of methods however the best prepaid card is going to give you free direct deposit. You will be able to deposit your paycheck or government benefit check. You can also deposit your tax return. Using this will give you access to your money much faster & without the expense of cash checking fees.

Additionally you can load cash by visiting thousands of popular retailers such as; WalMart, Target, Kroger, Rite Aid, CVS, Longs, Walgreens, Kmart, WesternUnion, MoneyGram…. You can use a Greendot Money Pak and a Visa ReadyLynk.

You can also transfer money directly from a bank account. Some cards will give you the ability to move money from one card account to another. And you can even deposit money through PayPal on your card.

Online Bill Pay

This feature will enable you to fully use your prepaid card just like a checking account. You can pay bills online and for free with the top online prepaid cards.

To use this you just log into your account online, go to the bill payment center, fill in the name of the business or individual you want to pay, and the date you want the payment sent, and your DONE! On the indicated date a check in your name will be sent.

You can schedule future payments, monthly payments, and of course one time payments. And all from the comfort of your home and without the expense or hassle of going to the store and buying money orders.

By using free bill pay and free direct deposit the average card holder saves up to $324.72 every year! Because they don’t have to pay check cashing fees or buy money orders. That is a lot of money to pay in just fees – every year!

With a prepaid card you will never be charged a bounced check fee, or overdraft fee EVER! There is no credit check or chexsystems bank check, your approval is guaranteed. It will provide you with the same purchasing power as everyone else with a major credit card.