Not everyone has credit cards at their disposal, especially students. For that matter, many students do not have checking accounts either. That doesn’t mean a student needs to walk around with a wad of cash all the time or even stash his savings under his mattress. With prepaid cards people can have all the flexibility of a credit card and a checking account without the hassle.
Like Credit Cards but Never Over Limit
Prepaid cards can be used just like credit cards and are accepted in the same way. Don’t have a Visa? Anyone can use a prepaid card to buy stuff online and in stores. The big difference is that with a prepaid card, only the amount of money put on the card can be spent. If there is only $100 on the card, only $100 can be spent. It can never be overdrawn.
Like Debit Cards Without the Checking Account
Even better, prepaid cards also can be used like debit cards which are linked to bank-based checking accounts. Paychecks can be deposited directly to a card and the money is available immediately. Card users don’t have to deal with cashing a check and paying a fee charged by check cashing stores.
Having prepaid cards can be very handy for students who may be attending college far away from home and without access to a local bank. This also makes it easier for parents to provide their sons and daughters with much needed transfusions of money necessary for late night pizza runs and doing laundry.