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.
When going a bit deeper into the world of payment cards, we get to see that there is a great similarity between two major types of cards, which are debit cards and co-branded prepaid cards. It has been noticed that customers are often quite confused about which is one to choose. If you too, are encountering the same dilemma, read on to learn what the basic difference between the two is, so that you can decide which one is a better option for you.
In order to highlight the basic difference between co-branded prepaid cards and debit cards, in this article, we are discussing various features of the two cards. Read on to determine which card is more suitable for you.
Issuance of Credit The first and foremost difference to remember between a debit card and a prepaid card is regarding the availability of credit. Debit cards usually allow customers to use their savings only. However, the overdraft facility does allow them to spend more than their savings, which can be regarded as credit. On the other hand, prepaid cards never lend any credit. You can only access and avail your own financial assets via this card.
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.
Access to Credit Many people prefer plastic money over cash because it provides them with extra credit, which is some extra money from bank as loan. However, all cards do not facilitate their customers with this exclusive option. Prepaid cards allow customers to avail and use that money that they own. On the other hand, debit cards provide an additional option of over draft, through which cardholders can borrow some money from the bank.
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.
Despite these differences, the usage and cancellation policy for both types of cards is quite similar. Whether it is a prepaid card or a debit card, both can be used 24/7, all over the world.
Whether it's a debit card or prepaid card - both helps the users to keep a prompt record of their expenditure. However, co-branded prepaid cards also allow controlling these expenses by staying within the limits.
When going a bit deeper into the world of payment cards, we get to see that there is a great similarity between two major types of cards, which are debit cards and co-branded prepaid cards. It has been noticed that customers are often quite confused about which is one to choose. If you too, are encountering the same dilemma, read on to learn what the basic difference between the two is, so that you can decide which one is a better option for you.
In order to highlight the basic difference between co-branded prepaid cards and debit cards, in this article, we are discussing various features of the two cards. Read on to determine which card is more suitable for you.
Issuance of Credit The first and foremost difference to remember between a debit card and a prepaid card is regarding the availability of credit. Debit cards usually allow customers to use their savings only. However, the overdraft facility does allow them to spend more than their savings, which can be regarded as credit. On the other hand, prepaid cards never lend any credit. You can only access and avail your own financial assets via this card.
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.
Access to Credit Many people prefer plastic money over cash because it provides them with extra credit, which is some extra money from bank as loan. However, all cards do not facilitate their customers with this exclusive option. Prepaid cards allow customers to avail and use that money that they own. On the other hand, debit cards provide an additional option of over draft, through which cardholders can borrow some money from the bank.
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.
Despite these differences, the usage and cancellation policy for both types of cards is quite similar. Whether it is a prepaid card or a debit card, both can be used 24/7, all over the world.
Whether it's a debit card or prepaid card - both helps the users to keep a prompt record of their expenditure. However, co-branded prepaid cards also allow controlling these expenses by staying within the limits.
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Credit card programs are good for those customers who already have bank accounts and are worried 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.. This article, What Is The Difference Between A Debit Card And Co-Branded Prepaid Card? is released under a creative commons attribution license.