The digital age has brought about more choice in so many areas. More ways to watch movies, to chat with friends, to buy things, and to pay for things. Zeroing in on that last area, today we see contactless payments using phone apps, digital wallets like Wise and PayPal, and even crypto payments among the mix.
The idea of prepaid debit cards sounds almost archaic, a little like those phone cards we used to get for use at public phone booths. Why would anyone want to use a prepaid card anymore?
That is a question that is worth some serious examination, as industry research shows that the use of prepaid cards is on the increase, both in the US and worldwide. Here, we try to find out why, and whether we should all be using them.
An evolution from coupons and gift certificates
The current trend for prepaid cards began in the retail world. For years, brands offered coupons or certificates that were “cash equivalents” that could be used in their stores. The theory is that a card is easier to use, less likely to be lost, and can be “recharged” as often as you like.
This concept immediately broadened to more general cards, issued by banks or financial institutions, that could be “charged” with credit that can then be spent by the bearer. These are not tied to a specific individual or linked to a bank.
Casino cards – a special case
It’s worth pausing to mention a special case at this point. Online casinos are limited in what sort of payment methods they can use. In fact, it is quite a complex matter, as the rules vary from state to state.
Paysafecard is a specific prepaid card invented for this environment and using a Paysafecard casino can save a whole lot of complications, provided you are willing to be bound to the financial limit of the card.
Advantages of prepaid cards
Here are a few of the reasons people are attracted to prepaid cards:
- No credit worries – even if your credit score is on the floor, you can get a prepaid card because there is no credit involved and nobody is exposed to risk. Using a prepaid card could help you recover your credit rating, but more on that in a moment.
- No bank account is needed – the card is like a little bank account in its own right. Note that you can also withdraw cash from it at an ATM.
- Safer than cash – once registered, you are protected under Consumer Financial Protection Bureau provisions in case of loss or theft.
- Manage your spending – if you haven’t got it, you can’t spend it. If you need to give yourself a little tough love to get the finances under control, this is the ideal tool. The casino paysafecard is a perfect example of that principle in action.
What about the disadvantages?
There are only a couple of downsides to prepaid cards, although these might better be described as inefficiencies. The first is that depending on the card, you might face fees. These could include transaction fees, top-up fees, activation fees, and even lack-of-use fees. Always read the small print.
The second point is that although these cards are not affected by your credit score, they can’t help it either. If you are looking to rebuild your credit rating, this isn’t the answer and you are better off seeking a low-limit credit card of some sort.
