Many people think that prepaid debit cards are just for people who do not have a bank account. Finally, checking of accounts is usually done with a debit card that can be used just like a credit card. Why would someone with a bank account need a prepaid debit card?
Why you may need a prepaid debit card for business
While prepaid debit cards are useful for people without a bank account, the following benefits apply to everyone.
When you need to conduct a private transaction, a prepaid debit card is the best solution. Technically, you can also use cryptocurrency, but not every merchant accepts crypto. You do not need any special reason to keep your shopping private. You may not want advertisers to know what kind of groceries you buy, or you may want to buy controversial products so that the purchase is not returned to you.
Whatever your reasons are, you are entitled to do Anonymous Shopping. However, to make your purchase completely anonymous, you will have to purchase your prepaid card in cash without entering any type of loyalty card number. Otherwise, your purchase may be detected at some point. Even if you are not doing anything illegal, the mark on your name will return.
Downside to prepaid card
There is only one problem with store-prepaid debit cards: monthly maintenance fees. Like calling cards, prepaid debit cards usually charge a monthly fee that is deducted from the unused balance. This is not good for those who need to use their card regularly. This is just another fee to add to their growing list of expenses.
Happy middle ground
For those who require private transactions on a regular basis, Chaim offers free debit cards for pre-paid spending accounts without any monthly fees. The additional benefit to using a chime card is that the total is rounded off for each purchase, and that difference is credited to the savings account. The card can also be replaced if your luggage is lost or stolen.
2. No overdraft fees
It is easy to avoid overdraft fees when you manage your finances properly. However, sometimes a salary is not accompanied by a monthly fee. If you suffer from overdraft fees, as your salary time is not in line with your monthly bills, putting some of your bills on a prepaid card will help you avoid overdraft fees.
When an item bills on a prepaid card that has no money, the purchase will be canceled. You will still need to handle a transaction with that merchant, but when you do not have enough money available, at least you will not be charged an overdraft fee.
3. Protection for uncertain purchases
Prepaid card is great when you want to buy from online store, but you are not sure that you can trust the site. Sometimes websites look shady because the developer is not finished, or the business has tried to build its website. Other times, websites look shady because they are actually scams. It is difficult to tell.
Having a prepaid card makes it easy to buy from online stores, you do not completely trust your credit card information. You can load a prepaid card with the necessary funds for your purchase, and if the company steals your credit card information (or if they fall victim to a data breach like the infamous Equifax breech), they won’t find anyone else Of your money. This brings up the next point…
4. Protection from future data breaches
When you make online or even in-store purchases with your credit card, if that company suffers from data breeches, your card number can be jeopardized for months. By that time, hackers and cyber criminals could easily wipe out your bank account. If you have a direct deposit or a large balance, they can erase you for a lot of money.
If you use a prepaid card for all your online purchases, and you don’t hold a large balance, you don’t have to worry about losing money in future data breaches. If hackers get your prepaid credit card number, they won’t get much money, and you can dig up that card and get another one.
Keep prepaid debit cards on hand for good measure
You never know when you want to use a prepaid debit card. Keep one in hand that you can refill so that you have it available when you encounter a situation that requires using a prepaid card.