Since this article tackles interesting things about reloadable prepaid cards, let’s start with just that, something interesting about reloadable prepaid cards: while they look identical to credit cards, reloadable prepaid cards are used pretty much just like debit cards. If anything however, reloadable prepaid cards are considered in a league all their own.
Nowadays, more and more people are discovering the exciting and enticing benefits their reloadable prepaid card comes with. That being said, it’s no surprise the market for reloadable prepaid cards has continued to explode massively.
In 2010 alone, a whopping $40.85 billion was loaded by users to their reloadable prepaid cards according to the Mercator Advisory Group. Statistics also show that’s up by 43 percent compared to the year prior.
There are several ways to load money onto a reloadable prepaid card. While loading options can vary from one issuer to another, some of the most common loading options include loading through bank transfers, direct deposits, or secure online portals.
If you are one of the many who would like to get a reloadable prepaid card, here are some interesting things about this exceptional financial tool you should know:
You will only be sharing basic personal and financial data when getting a reloadable prepaid card
While many mistake reloadable prepaid cards for gift cards, they are actually two different things. For starters, while gift cards are designed for one-time use, reloadable prepaid cards are created for long-term use.
This also means that when setting up the card, a few personal and financial information will be required. The good news however is that you will only be sharing the basics like your name, address, birthdate, phone number, and social security number.
If you are going to reload your reloadable prepaid card using your bank account, it is also likely that you’ll need to provide your bank account number.
Many reloadable prepaid cards offer exciting freebies and perks
Some reloadable prepaid card issuers entice prospective customers by offering amazing perks, freebies, and benefits often given to credit card users. For instance, some issuers offer protection for broken, stolen, or lost items purchased using the reloadable prepaid card within 90 days from purchase date.
Others also provide global assistance like medical and legal aid to those users who travel outside of the country.
Consumer protections can vary from one card to another
While considered by many as the consummate alternative to debit or credit cards, some reloadable prepaid cards may not provide the same guaranteed protection. Primarily this is because some protections like responsibility, disclosure, and accountability associated with credit cards does not apply to reloadable prepaid cards.
Fortunately, many issuers of reloadable prepaid cards voluntarily observe safety regulations to protect the users. For example:
- Some reloadable prepaid card issuers offer users zero liability in case of card fraud, loss, or theft.
- Some reloadable prepaid card card issuers offer zero liability in the event of unauthorised transactions using the card.
- Some reloadable prepaid card providers offer reimbursement of balance and card in case of card fraud, theft, or loss.