Archive for the ‘Debit’ Category
A reloadable debit card saves you money by avoiding interest charges! Take a look at some of the other advantages that come with a reloadable debit card.
Let’s start off by taking a look at what exactly a reloadable debit card is, and how can it help you. Reloadable debit cards allow you to have a prepaid amount of cash available anytime in the form of plastic, such as a MasterCard or Visa. You don’t have to have a bank account, you don’t have to have a good credit rating to get one, and you can only spend up to the amount that you have loaded. Banks or issuers normally guarantee approval if you can provide sufficient identification information, such as your driver’s license, birth certificate, or social security number. This is extremely beneficial for someone who tends to overspend and wants to take control of their spending habits immediately.
So how does it work? You have the issuer increase the amount available with money from any number of sources, such as cash or another bank account. The funds are normally available within 30 minutes after the amount has been loaded. Some people choose to have their employer directly deposit their paychecks onto a reloadable debit card, which saves them from having to pay a costly check-cashing fee somewhere else! Keep in mind that some (not all) issuers charge a small fee to do this, so make sure you check the terms of your agreement for the exact amount (if there is one). The information that you will need to provide to your employer is similar to a regular checking account, normally a bank routing number that is used for direct deposits.
The major advantage to reloadable debit cards is that you avoid having to pay interest charges, which can be a major savings over time. You also avoid paying any type of late fees, non-sufficient funds (NSF) fees, annual fees or overdraft fees. Be sure to review the terms of your agreement though, as some issuers may charge any (or all) of the following fees:
• Initial Purchase Fee: One time fee normally under $10.
• ATM Withdrawal Fee: If you choose to withdraw cash at an ATM, you may be charged a withdrawal fee starting anywhere from $2.50 to $5.00.
• Lost Fee: If you lose it, you could be charged a fee for a replacement, normally under $10.
• Overdraft Fee: If you accidentally charge more than the available balance, you will be charged an overdraft fee. This could be as high as $30 or more and you will still have to pay the balance of the amount you overspent as well, so be sure to keep a close eye on your spending!
Where can you use one? The honest answer is just about anywhere, but it does depend on the logo. If you have a Visa reloadable debit card, it can be used anyplace that Visa is accepted. The same applies for a MasterCard debit card. Major retailers usually accept both types as so do most online stores and bill payment centers.
The bottom line here is that reloadable debit cards are great way to exercise your financial wit. You avoid paying interest charges, you control the amount you spend, and you stay within your budget.