Prepaid Debit Cards

Paying with a card, any card, changed consumer-based economies forever. While the mechanics behind credit and debit cards sounds rather simple, you need a lender or middle-agency to make the whole thing work. And these entities need systems in place to vet clients. There are a host of moving parts in between, not to mention the ability to figure out who will be good clients over time. This is vital in the credit card business, but still crucial with the prepaid model as well.

Prepaid credit cards have been around since the 1950s. You could argue they were around in the early days of the credit card in the 1920s, but their widespread adoption didn't occur until the 50s and 60s. A prepaid card, regardless of the type or provider behind it, starts when money is loaded onto the card. Most prepaid cards (except for gift cards) can be reloaded. The two most common types are single-purpose and multi-purpose cards. The former can only be used at a specific merchant. This merchant could be a chain with multiple locations or only one location. The latter, however, is more flexible. These cards are taken anywhere the brand is accepted. This is at a store with the merchant's name, but if said merchant owns multiple brands, then multi-purpose cards can be used at any of their stores or brands.

The Brink's Prepaid Mastercard is one of the better-ranked cards on the market. Brink's features a direct deposit program that enables faster payment than, for example, a paper check. There are also no late fees or interest charges (on nearly every prepaid debit card) because these aren't credit cards. Whatever you place (deposit) on the card is what you have to spend, period. You may download the Brink's app to your smartphone and monitor all activity in a highly streamlined manner. The monthly fee for the Brink's card is a bit higher than its competitors. This is due to the associated benefits, but those benefits are reserved for retirees principally. Discounts at pharmacies are especially popular with this demographic.

The NetSpend Visa Prepaid Card is a cool option as it comes with a handy pay-as-you-go plan. With this plan, the only charges you incur is when you use the card. If you keep the card in your glove compartment for five months, no charges. NetSpend also has a Fee Advantage Plan and a Reduced Monthly Plan with the corresponding benefits. But these have a cost associated with them. If you're the type that is only buying a couple of times a month, the pay-as-you-go plan is ideal. If you are making say 15 purchases or more, the monthly fee plan would be best.

Lastly, the PayPal Prepaid Mastercard. PayPal might as well be a legitimate bank at this point. Started as a peer-to-peer money service, with their prepaid Mastercard you can now move money from your PayPal account, earn cashback and also obtain personalized offers as a card user. The monthly fee of $4.95 is deducted from your PayPal account, and the number of participating merchants grows by the day.

Again, no credit here folks. If you're looking for a $5,000 loan, this isn't the post for you. But these are great options if you use the card enough to warrant the reward points