Prepaid Credit Cards - Common Questions and Answers

By: Reflexiones Facil24 on 12:32 AM

You may have some questions about the now popular prepaid debit cards that everyone is using for online purchases and more. These days these cards are finding more uses than ever. Although they started out at banks as a way to give people the gift of money for Christmas, these cards have become an entire industry of their own - you no longer limited to getting them at banks.

You can find these cards in a vast assortment of stores as well as many different formats. Each card has its own theme and features. Many companies are producing these prepaid cards with features to compete in the market and to get you to use their card.

Some of the most asked questions are:

• Where do I get prepaid cards - are they only found at banks?
• How do they work and how much do they cost?
• How old do you have to be to get one?
• Can I use a different name than my own so if I lose it I don't risk identity theft?
• Is my money on these cards protected and insured against fraud or theft?
• What happens to the money if my card is stolen or I lose it - can I get it back?

These are all very good questions and the answers are very simple. The prepaid card works exactly like a bank debit card. You are protected against fraud and theft. If you lose the card the money is insured, an investigation is done and your money is returned to you if your card is stolen or a company charges your card without your permission.

The benefit of a prepaid card vs. a bank debit card is you can get them completely anonymously and this protects your identity online -- and if you lose your card you don't have to fear identity theft, not to mention the fact that your money is not lost. You call and get the number deactivated just like a you can when a debit card lost. Many of these cards can be used like an ATM card meaning you can withdraw money from an ATM machine with a security pin number as well.

Prepaid credit cards are available over the counter at most banks, stores like Wal-Mart, and even 7-11. There are even prepaid cards you can purchase at your favorite stores much like a gift certificate -- in fact most stores have replaced the gift certificate with prepaid "gift cards," some of which work exactly like a debit card including having the Visa or MasterCard logo. Many of the mail-in rebate companies now use prepaid debit cards to pay you your rebate instead of sending you a check to make it easier to access your money.