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Prepaid credit cards are an asset to those that don't wish to use the traditional revolving credit found with traditional credit cards. Prepaid card can be used for transactions without the need for cash, checks or a bank account.
Loading
Prepaid cards can be loaded using direct deposit of a paycheck from an employer or by making payments in cash at a designated location, such as Western Union or MoneyGram locations.
Use
Prepaid credit cards work similarly to a gift card, as once loaded, prepaid credit cards can be used for shopping online, paying bills and use at point of sale credit card machines in stores and restaurants. The user cannot spend more than the amount that's available on the card, preventing over-limit fees and finance charges.
Fees
Prepaid cards may be associated with additional fees if a minimum balance or deposit level is not maintained. Others may have a small monthly fee assessed for the use of the card. ATM withdrawals may also cause charges to be assessed. Finance charges are generally not found on prepaid cards.
Buying
Cards are available for purchase in many retail locations, such as drug stores, discount stores and check cashing locations, and many options for buying cards are available online.
Caution
Prepaid credit card scams are plentiful on the internet. Be sure to purchase only from reputable retailers, such as Visa.com or MasterCard.com
Source:
Resource:
credit.com: PrePaid and Debit Cards
Walgreen's: MasterCard and Visa Cards
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