It is a well-known fact that traditional credit and debit cards are known as fraudster magnets. The prevalence of frauds has increased exponentially over the past decade. While there is a myriad of precautions you can take, ring-fencing can help mitigate credit card risks. One such financial instrument is prepaid Visa cards. Prepaid Visa card function by preloading with the card with funds. Once the funds are used up, it can easily be pre-charged or topped up with the desired amount. In the past you would have multiple credit cards and a debit card nowadays a single prepaid card will do the trick. Below is a list of advantages of using prepaid cards:
Make Foreign Travel Easy
One of the benefits of prepaid Visa cards are for people travelling abroad, as the amount loaded on the card is fixed. This offers the card holder the added advantage of hedging against currency rate fluctuations. Traditional credit card users in the past experienced being charged with ridiculous foreign exchange fee for purchases made abroad with a prepaid card this is highly uncommon. In case a prepaid card is lost, the losses are limited to the funds preloaded in the card, also as the bank arranges for quick replacement.
Ensure Safe Transactions
Almost all stores and restaurants accept credit card payments these days, which makes it very convenient on the consumer’s end. However, it is very difficult to tell when a credit card has been skimmed or replicated on a duplicator, giving the person complete access to your card, even though the card is still with you. In the event that a prepaid card is skimmed, the potential financial damage is limited to what was pre-load on the card and not more. This is because, unlike credit or debit cards, prepaid cards are not linked to a credit facility nor a bank account. This makes it a much safer alternative to your traditional payment methods.
Access Free Trial Periods
Nowadays, most service providers ask you to provide a credit card number even during the trial period, especially if you are transacting with an international service provider. Even if you cancel your service within the trial period, the chances are that the charge may not get cancelled. These companies may have a toll-free number which is not accessible from another country in most cases. Such an instance will lead to unnecessary hassle of card cancellation, as well as applying for a new card and paying for an under-utilized service. By opting for a prepaid credit card, these hassles can be prevented. Simply give them the information of an empty prepaid card, and you can enjoy the free trial periods without having to bear the risk or cost of these annoying future charges.
Ensure Safety when Accessing Public Computers
Most people know that providing your private information online is a major risk. In case you have to use your credit or debit card on a public computer, there is practically no way of finding out if there is a tool that is recording the keystrokes on the device. Therefore, the best option would be to exercise caution and use prepaid cards instead. The potential financial damage will be limited only to the preloaded amount and not a dime more.
Manage Spending Efficiently
Attaching a savings account to a prepaid card is not a necessity. Unlike traditional credit or debit cards, it has no personal bank details attached to it. This awesome feature helps keep frauds at bay. The prepaid Visa card can be provided to a family member, a loved one, or an employee with a cap on the total amount to check spending. And on top of that, there are no annoying minimum balance is requirements for using a prepaid card.
However, as with any payment method, prepaid cards come with their own challenges. One of the major challenges is reloading the prepaid card’s balance. To recharge your prepaid card, you still need access to fund transfer features, this enables cash transfer from your bank account to the prepaid card account. Be sure to check with your prepaid card providers for the different recharging options available to you, find a prepaid card that fits your needs and you are gold.
Despite such a minor drawback, the prepaid card is one of the best ways to restrict fraud in an increasingly cashless economy. This highly reduces the extent of loss as one can only steal the amount loaded on the card. The prepaid card is a great financial product that promotes responsible spending through better financial management.
To learn more about prepaid cards, please visit www.transact24.com today.