With regard to the payment options available to customers today, there are many. People can either use cash or plastic money to pay for their bills and purchases. However, many prefer to opt for plastic money over cash as it is safer and more convenient to carry and use.
Since the usage as well as the cancellation policies of all of these cards is quite similar, most people end up mixing the basic functional features of the cards.
1. Availability of Credit As the name implies, co-branded prepaid cards allow cardholders to use the money that they already have in their respective bank accounts only. The banks grant no credit to customers, when these cards are used to make transactions. On the other hand, some debit card issuers do provide a credit option via the overdraft facility.
Conduction of Credit Check Credit check is basically an inspection of customers' previous transaction records regarding how timely they have paid their debts. For the issuance of prepaid cards, banks do not check their customers for their credit score. However, for debit cards, such a check is performed as an overdraft credit facility is available with it.
3. Card Fees Prepaid cards, especially co-branded prepaid cards are often charged with small initial fees, while for debit cards, banks always charge fixed fees. In addition, penalty charges are also applicable on debit cards, if any debts taken from the bank are not paid on time.
Credit Check For Eligibility When it comes to the issuance of prepaid cards, the cards are usually issued without any credit check. However, for debit cards, a thorough check is conducted for customers' previous credit scores, especially if the customer wishes to avail the overdraft facility.
5. Compatibility with ATM When it comes to the usage of these cards at ATMs, debit cards provide their customers with the facility on a wide scale. On the other hand, only a few co-branded prepaid cards can be used at ATMs to withdraw money instantly.
ATM Facility Not all prepaid cards empower their customer with the option to withdraw money through an ATM whereas debit cards do facilitate their users with this benefit.
Conclusively, we can say that co-branded prepaid cards are a good option for those who do not have bank accounts yet and want to spend within their limits. For those owning a bank account already and preferring to take a loan to fulfill their needs, debit cards are best.
Since the usage as well as the cancellation policies of all of these cards is quite similar, most people end up mixing the basic functional features of the cards.
1. Availability of Credit As the name implies, co-branded prepaid cards allow cardholders to use the money that they already have in their respective bank accounts only. The banks grant no credit to customers, when these cards are used to make transactions. On the other hand, some debit card issuers do provide a credit option via the overdraft facility.
Conduction of Credit Check Credit check is basically an inspection of customers' previous transaction records regarding how timely they have paid their debts. For the issuance of prepaid cards, banks do not check their customers for their credit score. However, for debit cards, such a check is performed as an overdraft credit facility is available with it.
3. Card Fees Prepaid cards, especially co-branded prepaid cards are often charged with small initial fees, while for debit cards, banks always charge fixed fees. In addition, penalty charges are also applicable on debit cards, if any debts taken from the bank are not paid on time.
Credit Check For Eligibility When it comes to the issuance of prepaid cards, the cards are usually issued without any credit check. However, for debit cards, a thorough check is conducted for customers' previous credit scores, especially if the customer wishes to avail the overdraft facility.
5. Compatibility with ATM When it comes to the usage of these cards at ATMs, debit cards provide their customers with the facility on a wide scale. On the other hand, only a few co-branded prepaid cards can be used at ATMs to withdraw money instantly.
ATM Facility Not all prepaid cards empower their customer with the option to withdraw money through an ATM whereas debit cards do facilitate their users with this benefit.
Conclusively, we can say that co-branded prepaid cards are a good option for those who do not have bank accounts yet and want to spend within their limits. For those owning a bank account already and preferring to take a loan to fulfill their needs, debit cards are best.
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Credit card programs are good for those clients who already have bank accounts and are concerned about not exceeding their expenditure limits. But, for those cardholders who don't have bank accounts yet want to avail quick shopping facilities, http://www.gobankpro.com/co-branded-cards.php are the best option.. Unique version for reprint here: Prepaid Card Or Debit Card - Selecting The Best..
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