Nowadays, there is another plastic card that has earned a massive following: reloadable prepaid cards. While debit and credit cards have been around way longer, reloadable prepaid cards are giving them a run for their money thanks to the enticing benefits they offer.

While today’s plastic cards share almost the same features (read: convenient and cashless transactions), reloadable prepaid cards are in a league all their own. Why? For starters, they are not hard to obtain. You don’t need to have an impressive credit standing to get one. In addition, you are also not required to submit financial or personal information just to be issued one.

If truth be told, the popularity of reloadable prepaid cards is not really surprising. A survey done by the Mercator Advisory Group revealed that a staggering $40.85 billion was loaded onto prepaid cards. And this was in 2010 alone! Undeniably, prepaid cards are now considered as one of the most beneficial financial tools available today.

Get To Know Your Reloadable Prepaid Card

Loading money onto your prepaid card is quick and straightforward. Some of the most common methods used include bank transfers, direct deposits, and through secure online portals. If you’re considering getting a reloadable prepaid card, below are some of the things you should know:

Many reloadable prepaid cards offer special perks and freebies

A lot of reloadable prepaid card issuers win new and old cardholders over because of the enticing freebies and perks they offer. In fact, some of the perks are identical to the ones offered by many credit and debit cards.

For instance, some reloadable prepaid card providers offer cardholders 90-day protection for stolen, broken, and lost items they’ve purchased using their prepaid cards. Others also go the extra mile by offering travel security in the form of medical and legal aids as well as huge discounts on popular brands.

Reloadable prepaid cards can come with varying fees

When you use your reloadable prepaid card, it is vital that you are well aware of the corresponding fees for any transactions you’ll do. From the activation of the card down to other transactions like balance inquiry and purchase transactions, you need to know the charges so you won’t be surprised if there are any deductions. What’s really amazing about prepaid cards though is issuers only charge a very minimal amount, sometimes nothing at all.

Some reloadable prepaid cards provide the same consumer protection given by other cards

Individuals who are not qualified to get a credit card for one reason or another now have a great ally in reloadable prepaid cards. If anything, reloadable prepaid cards are not only seen as a better option, many also see them as the consummate alternative thanks to the unbeatable ease and convenience they offer.

Of course, prepaid cards don’t offer all the consumer protection provided by credit or debit cards. However, they do offer several of them. That’s a huge thing especially since reloadable prepaid cards have many other amazing features not offered by other conventional plastic cards.

Case in point: reloadable prepaid cards are considered the best option for those who would like to manage their money accordingly and stick to their budgets. With a credit or debit card, you have easy access to your account, while the former allows you to pay for purchases and pay at a later time.

When you use reloadable prepaid cards on the other hand, you are automatically limited to the balance that’s available on the card. In other words, you can never spend beyond the balance available. Once the balance has been depleted, the spending also stops automatically. You can only use the cards again once you have successfully loaded money onto the card.