The Changing Face Of Pre-Paid Credit Cards

By | December 2, 2013

It is important that you consider the time of the year and your budget that you have worked so hard to save for. But how do you use this money? It can be reassuring to know that you won’t go over budget, or have an option that you can use your card safely on-line.

The answer could be simpler than you might have first considered, a pre-paid credit card allows you to have the benefit of paying for items knowing that the money that you have used on your credit card, is the money that you have pre-loaded.

 Pre-paid credit cards

How to use a pre-paid credit card

They are really easy to use and are similar to a modern gift card, in that you put money on the card and this is the only money that you will have access to. You can’t overspend; you can only spend the money that you pre-load onto the card. But unlike a gift card a pre-paid credit card is accepted anywhere that the credit card brand is accepted.

This gives you security when you want to do on-line transactions because you know that the only money is what you have credited and this gives you peace of mind.

Changes happening

These pre-paid credit cards are re-loadable and that means that they are available for organisations to use to pay people. There are methods that allow government payments to be credited to the card.  This stops the need for cheques to be posted, saving money and the need to wait to cash the cheque, the money is instantly available. This gives you flexibility to use the card where you want, as well as ATM’s.

It is possible to get your wages credited to a pre-paid credit card; this gives you instant access to your money. The downside is that it will not be in the bank if you have bills to pay, but it is ideal if your company has a  no-cash pay which is becoming normal, but without needing to have a bank account for the money to be credited too. It can be difficult for some people to open bank accounts because of data protection and the need to be able to prove your identity by using certain documents and if you don’t have these documents then it can be nearly impossible to open an account and that means that people can struggle to get wages paid.  Non-cash companies have to pay via a bank and if the employee doesn’t have an account, how are they going to get paid?

The changing faces of pre-paid credit cardsHealth cards

If you are looking to save money then you might need to consider the option of getting your health care savings account. These are available for FSA’s and HRA’s. This option can save you time and money in the long term, it will give you access to the money and this means that you will not have to pay the bill yourself and then go through the process of claiming back the money, having the right card for the job.

It will make your life so much easier.

The changing face of pre-paid credit cardsEmployment incentive cards

It is possible to get bonuses and incentives from an employer paid onto a pre-paid credit card. It can be a great way to reward hard work and dedication and it is easy to manage, and it can be a personal benefit to the worker because the money is spent on individual needs of the person rather than a collective thought for all employees.

It can mean a way to buy items they need, and avoiding ending up with products they don’t want, it is a way to benefit your staff by giving them the options on what they want to do with the money.

The changing face of the pre-paid credit cardsThe buxx card

If you were looking to give your teen more responsibility then this might be the next step. It gives them access to money but there is a limit and if they spend all the money on the card is one issue, but you will be reassured that they can’t spend more money than what is loaded onto the card.

You can look at the purchases made and discuss their decisions. It is possible to add more money and this can be done in a number of different ways. It is a safe means to teach your child about budgeting and making financial decisions, which all are important life skills.

The changing face of the pre-paid credit cardGoing on holiday

If you were thinking about going  on holiday and are worried about taking travellers cheques with you? Then you no longer need to opt for this awkward mode of finance, instead you can opt for the travel money pre-paid Visa card. It is a pre-loaded card and this means you can top the card up at regular intervals rather than carrying all the money with you in one go, it has the added benefit if you keep the amount to a set limit if the card is stolen you won’t lose all of your holiday money.

This can reduce the stress of travelling and it can give you peace of mind, a must have for any holiday travel. Keep a note of the card number separately to your card because you will need this number to cancel the card if it gets lost or stolen, a new card will be sent out as a replacement.

The changing face of the pre-paid credit cardYour most precious gift, the gift card

There are many people that see the gift card as an unthoughtful-of gift, but in truth it could be the best present they get. It gives many people the ability to look for items that they truly want or need. Someone might not want to give cash and gift vouchers are becoming risky because they can be associated with one or two shops, and this can make purchasing items difficult. A pre-paid gift card is perfect as long as the place takes Visa, it can be re-loaded each time and this can be ideal for children’s presents, or to show a greener side, a top up on their card can be the perfect gift for many.

New thoughts

So, whatever your old thoughts about pre-paid credit cards were, I hope I have opened your mind to some new possibilities. It might be just the item that you hoped had been introduced, from the card for young adults to a card for your health care, I’m sure there is a perfect card out there for you.

What is your favourite pre-paid card? For me it is gift cards, they give me the chance to give to my friends and family something that is personal, they don’t end up with unwanted gifts and the versatility of the cards mean they are usable in so many places. It is an end to the unwanted gifts in my home, and a chance to buy something I truly want to give.



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