Universal Prepaid Debit Cards

Universal prepaid debit cards are widely accepted because they feature the same logos that appear on traditional credit and debit cards. This allows cardholders to travel to a wide variety of locations around the globe, knowing their prepaid cards will be accepted by most merchants.

Prepaid debit cards are used by a variety of people:

• People on vacation or on a business trip
• People looking to budget their spending
• College students whose parents load funds onto the cards
• Adults who cannot acquire a traditional debit or credit card due to credit problems
• Employees who receive payroll via debit cards
• People who receive universal prepaid debit cards as gifts

Cardholders should choose prepaid cards that have universal acceptance. Some companies claim to issue prepaid debit cards, but without the logo of a major credit card issuer the cards can only be used to purchase merchandise and services from the issuer and partnering companies. This situation is more like a gift card than a prepaid debit card.

Prepaid debit cards feature balances loaded onto the card by the purchaser. Some companies allow cardholders to replenish their balances, while other prepaid debit cards are only good for as long as the balance lasts, and then they are deactivated. There is no credit extended with a prepaid debit card, because the available balance is equal to the amount of money loaded onto the card by the purchaser.

Universal prepaid debit cards can be used just like a traditional debit or credit card. These cards work for most purchases, with the exception of a few types of transactions:

• Prepaid debit cards may not work when attempting to pay for gas at the pump. Instead, cardholders must pay the clerk inside the gas station using the prepaid card.
• Restaurants, rental car agencies, and other establishments which place a preauthorization onto the card for an amount higher than the actual purchase might attempt to place an authorization onto the card for more than the available balance. Even if the balance is sufficient for the purchase, there must be a large enough balance for the preauthorization amount, or the card will be declined.
• Most prepaid debit cards cannot be used for recurring scheduled payments. For example, utilities cannot be paid automatically each month using a prepaid card.

For all the restrictions surrounding these types of cards, they can be quite handy for someone who doesn’t need to make these kinds of purchases. If you are looking for a card that you can use to control your spending each month, a prepaid card can be a great idea.

If you would like to obtain a prepaid debit card that can be used for purchases in a wide variety of locations, start by checking with your bank or credit union to see if they offer these cards at a discounted rate for current customers. You can also locate issuers of prepaid cards from online sources, such as:

• Visa
• MasterCard
• American Express
• Discover

Be sure to review the schedule of fees associated with a debit card before making your purchase. You don’t want to get a card that has so many fees that you lose a good portion of your money to fees instead of to purchases.

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