Most conservative income earners do not buy the concept of credit since they consider it to be an extra burden on their finances. The term plastic cash is considered to be toxic since people are in the assumption that credit and debit cards can increase their chances of getting into a fraud transaction or might prompt them to over spend. Also, borrowing more debt like a personal loan or any privately acquired loan to repay the credit card debt is a menace that many don’t want to face. However, given the prudent utilization of the same, you can benefit yourself from not only offers like cash back, loyalty programs etc but also provide you the convenience of a security benefit option added to it. Although these facts are true, it is important for individuals to understand that apart from the regular debit and credit cards, banks also offer a less popular- PREPAID CARD.
Unlike its counterpart, these cards offer zero percent chances for a fraudulent transaction to take place. The various categories under which prepaid cards can be utilized are: gift cards, money cards, travel cards etc.
Travel cards
Travel cards are best used while you are away from home, enjoying your much needed vacation, alone or with your family. Under such circumstances, most of the time it has been observed that people tend to stress a lot on their safety of their baggage and cash and fear from the possibility that they might be robbed. In order to not enter into such a dilemma in the first place, it is important that you consider the travel card. They are the electronic form of the traveler’s cheque and are way safer than the currency notes. If in case you lose the card, a replacement card will provided you in a maximum of 2 days time, which is not that simple and possible if it is in the case of travelers cheque. It can be utilized against any currency.
Another best advantage of using the prepaid travel card is that you not only get to use them at stores but also can utilize them in ATMs abroad. But you will be charged a rate of 1.5-3% on the amount you withdraw. Also in the eventuality of a currency fluctuation your finances will be saved since you will have to pay on the exchange rate at which the prepaid travel card was signed on your name initially and not on the current exchange rate.
Also, there are some travel cards that provide you with the benefits of travel insurance and provide you with protection on your lost baggage.
Gift cards
These cards can be generally utilized if you are unsure as to what must be gifted to your loved for any special occasion. All you need to do is load the card with desired amount, say Rs5000 and let your loved one do the shopping in the loaded amount. What you need to know is that, for amounts up to Rs5000, you need to submit your ID proof to avail this offer and even best; it is not necessary for you to hold an account with the bank that is providing this facility. If the amount that you wish to load on the gift card is above Rs5000 you will need to fill in a KYC form and submit the form along with the specified documents.
Money cards
Money cards are generally utilized by parents in order to enable their children to utilize the amount loaded on the card. This card has multiple uses and some of them are utilizing for store purchases, online transudations and even at ATMs.
If you wish to avail such a function, you need to sign up for a money card by paying Rs250 and then later continue paying Rs100 as a yearly charge and each time that you reload the card, you need to be paying Rs25. Every single time the card has been used, a message will land in your inbox. All you need to do is, register your phone number.