Prepaid Number One payment method in the U.S
Prepaid credit cards are currently one of the fastest-growing payment methods in the U.S., and this trend is not restricted to those without bank accounts. A payment card are also now attracting consumers looking to stick to a budget.
Due to the increase in popularity and the vast increase in numbers the prepaid card providers are now able to reduce their fees to increase consumer demand and offer more features to increase popularity.
What Prepaid Cards has received reports from some of the 26 largest prepaid card companies in the USA that now prepaid cards are more competitive with checking accounts in the USA The main cause is the reduction in fees charged and that prepaid cards on the market nearly all come with guaranteed protection, at a lower cost than checking accounts.
In 2012 over $77 billion was loaded onto prepaid credit cards in the U.S.A alone where now the banks are starting to cash in on the case by buying out the smaller prepaid card companies or setting up their own card program, Chase are one of the first to catch on especially when a large part of the market is the teenagers and the college-bound market where parents are loading thousands per year in loading cards from afar and overseas.
Nowadays it is hard to tell the difference between credit cards, debit cards and prepaid cards as they all look the same but with different functions all carry a branded trade mark such as American Express, MasterCard or Visa logos and all offer the facility to pay bills or make purchases online and in stores. Taking in to account you can also withdraw cash like all other cards on the market you can now understand why they are popular without all the bank guarantees and credit checks you have to go through.
Prepaid credit cards in the USA are now on of the are no longer fastest-growing payment method in the U.S and not for all people who don’t have bank accounts. The prepaid cards are attracting consumers who want to budget their spending and prepaid cards that offer rewards and discounts when using the prepaid cards as a payment method.
But remember although prepaid cards are now convenient to use beware which card you choose are there are some cards which will work out expensive to use on a regular basis no matter how attractive they look. If you plan to get a prepaid credit card then ensure you check the following before purchasing.
1 Application Fee
2 Activation Fee
3 Charge per transaction or monthly maintenance fee
4 ATM charges
5 Reloading fees
6 Clear list of any additional charges such as inactive fee, cost per minute for customer services or in-store cash back charges