Prepaid Credit Cards to Purchase Online Easily

May 7, 2010 · Posted in Service Reviews

Prepaid credit cards are useful for anyone in need of a quick and functional way to purchase online in situations where a credit card is needed. For example, some online stores do not allow purchases made with debit cards, even though sometimes this the only way an interested customer can buy a product. In this sort of situation, a prepaid card will allow you to effectively make an online purchase without having to borrow money or pay interest after the fact.

Prepaid cards are different from ordinary credit cards in that they are not backed by a credit company. In other words, you will not be using borrowed money, but will instead load a specific amount of money onto the card and use it as if it were an ordinary Visa or MasterCard with the features of a normal card included along with it. For example, if you need to buy an plane ticket, make a reservation, or any type of online purchase you can do it with a prepaid card by simply entering the card number along with your personal information.

Cards that are prepaid are available from a wide variety of sources. In Canada, there is the Money Mart prepaid MasterCard. In the US, you can find a wide range of different prepaid services including Greedot, Mango, or other cards. It is also possible to find cards from companies such as Payoneer or Ikobo that offer their prepaid services to international customers. You should expect to encounter moderate maintenance fees on any of these cards, as well as small loading fees. If you were to withdraw from an international ATM, you will also be subject to additional charges deducted by the bank where the ATM is located.

For parents with kids who are traveling or away at college, being able to establish a preset spending limit is a great tool. Books, meals, and the occasional recreational out are necessary for a full college experience and having money available for these activities is usually a parents responsibility. However, kids who are college age do tend to be more irresponsible with money than other age groups so having the assurance that only a certain amount of money is available will prevent unnecessary worry as well as provide incentive to develop financial management skills.

In conclusion, a prepaid debit/credit card can be a useful tool in a variety of situations. They protect from overspending, they will not accrue interest, but still have all the features that come along with cards backed by credit.

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