There are many payment options available to consumers today. Amid the world of plastic money, two cards, which have a great similarity between them, are debit and co-branded prepaid cards. These two cards can often confuse users and make them uncertain about which one to opt for. If you are facing a similar dilemma, keep reading to discover some facts about both of these cards:
Information on Customers. A prepaid card issuance would need less and some very basic information regarding their customers. A debit card though would call for entire, much detailed, background information.
Cardholder Eligibility in Terms of a Credit Check. It seems that banks issuing prepaid cards do not make their customers suffer much. There is absolutely no credit check. When it comes to debit cards, on the other hand, they would go for one to certify that their account holder does in fact have the right credit score and rating.
Card Fee. One of the best things about prepaid credit cards (especially the co-brand prepaid cards) is that they require only a minimum maintenance or opening premium while debit cards cater to a relatively different scenario. Their fee is in accordance with the bank account and will also include the costs of penalty for having overdrafts long overdue.
Are There Any Card Charges? A small maintenance or opening fee is usually charged in case of prepaid credit cards, especially for co-branded prepaid cards. While in case of debit cards, a certain fee is charged applicable to the bank account and penalty fee is also charged in case of overdue overdrafts.
Customer Information. The issuance of a debit card requires the complete background details and information, regarding the bank customer. On the other hand, prepaid cards can easily be issued with very little and basic information about the customer.
ATM Usage. Although debit cards can be used at ATMs, the same cannot be said for prepaid cards. There are very few prepaid cards, which have this facility available of being able to withdraw money from your account via an ATM.
Conclusively, co-branded prepaid cards are ideal for those who do not have bank accounts yet and will probably take to a loan to fulfill their needs. Others owning an account already and not wanting to exceed their limits can simply go ahead in opting for debit cards. Be sure to act wisely.
Information on Customers. A prepaid card issuance would need less and some very basic information regarding their customers. A debit card though would call for entire, much detailed, background information.
Cardholder Eligibility in Terms of a Credit Check. It seems that banks issuing prepaid cards do not make their customers suffer much. There is absolutely no credit check. When it comes to debit cards, on the other hand, they would go for one to certify that their account holder does in fact have the right credit score and rating.
Card Fee. One of the best things about prepaid credit cards (especially the co-brand prepaid cards) is that they require only a minimum maintenance or opening premium while debit cards cater to a relatively different scenario. Their fee is in accordance with the bank account and will also include the costs of penalty for having overdrafts long overdue.
Are There Any Card Charges? A small maintenance or opening fee is usually charged in case of prepaid credit cards, especially for co-branded prepaid cards. While in case of debit cards, a certain fee is charged applicable to the bank account and penalty fee is also charged in case of overdue overdrafts.
Customer Information. The issuance of a debit card requires the complete background details and information, regarding the bank customer. On the other hand, prepaid cards can easily be issued with very little and basic information about the customer.
ATM Usage. Although debit cards can be used at ATMs, the same cannot be said for prepaid cards. There are very few prepaid cards, which have this facility available of being able to withdraw money from your account via an ATM.
Conclusively, co-branded prepaid cards are ideal for those who do not have bank accounts yet and will probably take to a loan to fulfill their needs. Others owning an account already and not wanting to exceed their limits can simply go ahead in opting for debit cards. Be sure to act wisely.
About the Author:
Debit cards are a good option for those individuals who already have bank accounts and will not be tempted to exceed their expenditure limits. However, for youngsters who do not have bank accounts and will be tempted to take loan, co-branded prepaid cards are the best option. So make the right decision today in accordance to your requirements!
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