| By :
Jacobey Larstons
A prepaid card is the right choice for you if you are currently paying for money orders or having to pay fees to get your paycheck cashed. These cards were created in response to the credit crisis which eliminated unsecured credit cards for individuals with bad credit from the market. These cards are issued as a Visa or MasterCard and will provide you with the same purchasing power. You can use it to make purchases online and over the phone. Your card will also be secured by a $0 liability policy which means if it is ever lost or stolen your money is still protected. The big difference between a prepaid debit card and a regular credit card is that instead of making monthly payments with these cards you must first load of or deposit money. Then when you make a purchase the amount of the purchase will be subtracted from the money you have deposited into your account. These cards will help you avoid paying check-cashing fees by using free direct deposit. To use this all you have to do is print up a piece of paper, fill in the necessary information, and turn it into your paycheck provider or employer. You can use direct deposit for payroll checks, tax returns, benefit checks, pension payments… You can also load money onto your card at many retail stores by using a greendot money pack, Visa readylink, and with some prepaid cards even with cash at a cash register. Additionally some cards allow transfers from ACH accounts, PayPal accounts, and even from one card account to another account. If you are currently purchasing money orders to pay your bills you should seriously consider a prepaid card. Many will provide you with free online bill payment, this will eliminate your need to ever purchase a money order again. In order to use this you must log into your account online, go to the bill payment section, fill in the necessary information such as the business or individual you want to pay, the amount, and the date you want the payment sent. The next thing that happens is on your payment date a real check will be mailed in your name to pay your bills or an individual. You can set up recurring monthly payments, future payments, and a one-time only payment. This can all be done from any computer with internet access instead of going to the store to purchase a money order. These cards do carry some fees however as the market has become more competitive we have seen some leaders offer free service to those customers that meet certain conditions. For example we have seen free service to individuals that use their card 30 times or more in a month, or directly deposit $3000 or more. Additionally you can also earn reward points with some of these cards. These reward points can be redeemed for services and goods. This card will also provide you easy access to manage your spending by using your online account, and you can sign up for free text or e-mail alerts about your account activity. You'll never be charged a bounced check fee or pay any interest fees.
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