The Top 5 Questions About Prepaid Cards Answered!

Through the years, prepaid cards have evolved into one of the most reliable ways to make purchases through merchants and online stores. Prepaid cards are also considered one of the best travel companions especially by those who travel overseas on a routine basis.

Prepaid cards share many surface similarities with other plastic cards like debit and credit cards. However, they also have very distinct differences. For starters, prepaid cards have to be loaded with a predetermined amount before it can be used.

If you are like most people, you are most likely considering getting a prepaid card or you already have one but don’t know how to use it accordingly. If you have a prepaid card or would like to get one, it would make perfect sense to know all the basics first.

Let us start with the top five questions about prepaid cards and the facts about them:

Question No. 01: What will happen if my prepaid card gets stolen or lost?

In the event that your prepaid card gets stolen or lost, you will be advised to report the incident right away to your prepaid card provider. In many cases, prepaid card providers will transfer the balance left on the lost or stolen card to the new one. While at it, it would also be ideal to check with your provider if there are additional fees you need to pay to replace your stolen or lost card.

Question No. 02: What other fees do I need to pay when I use my prepaid cards?

In most cases, the fees are identified by the issuer. In other cases, it depends on the features of your chosen prepaid card. For example, prepaid cardholders are charged a minimal fee each time they check their balance, customize the card, or reload money onto their cards. Other transactions that have possible fees include replacing stolen or lost cards and purchasing goods and paying for services online.

Question No. 03: Do prepaid cards have expiry dates?

Most prepaid cards don’t have expiry dates unless they are used and distributed as promotional cards. Depending on the prepaid card provider, it is also possible for a prepaid card to have an expiry date. However, it would be best to check with the prepaid card provider first to know if the card has an expiry date and if you have to pay anything for a renewal card.

Question No. 02: How much do I have to pay to activate my prepaid card?

Some prepaid card issuers charge users when they activate their prepaid cards before they can use it. However, fees will depend on other factors like the prepaid card chosen and the issuer of the card. In other cases, prepaid cardholders are also charged depending on the preset rate and the value associated with the card.

Question No. 05: What regulations apply to prepaid cards?

The regulations that will apply to prepaid cards can vary from one issuer to another depending on where they live. However, for prepaid cards that are provided by federally regulated financial institutions, the Prepaid Payment Products Regulations covers them.

As a general rule of thumb, it is also recommended that you check all there is to know about your prepaid cards before you decide which one to pick. Nowadays, most prepaid card providers already have a website so it would be best to check them out.