Secured Prepaid Cards vs Prepaid Cards – Which one is Better?

If you’re looking for a credit card solution to put an end to your miserable credit history, it’s time to switch to a prepaid card. Apparently, one of the best ways to cap your extra expenditures and even start saving. Yet again, there are two types of prepaid cards – secured prepaid cards and prepaid cards. Though both are advisable and have the same features, they do come with some set of differences which makes one better than the other.

Secured Prepaid Cards vs Prepaid Cards

As just stated above, both secured prepaid cards and prepaid cards speak of the same set of features – for instance, you need to load money onto them, both of them can be used in place of credit and debit cards at a multitude of places such as at the grocery shop, a Cineplex, fuel station, a restaurant, etc. However, this is exactly where the similarities end.

In the case of a secured prepaid card, you need to make a security deposit of a nominal amount against the credit limit offered by the service provider, before you’re issued the card. The security deposit is placed in a saving’s amount until the time you’re availing the services of the card or are declared a defaulter due to excess expenditure.

When you’re using a secured prepaid cards, you’re in a way borrowing funds, as in the case of a credit card. Whatever you purchase or make payment through the secured prepaid card goes against your revolving credit limit and you must clear the dues every month to enjoy using it in the future. Once you make the payment, your credit limit, as set in the beginning revives and you can start spending again.

Prepaid cards, on the other hand, are different. In the case of prepaid cards, you need to pre-load money into the card in order to use it for making payments. Once you’ve exhausted the amount loaded onto the card, you cannot avail any credit money because there ain’t any credit limit attached to these cards. You will have to load more cash onto to the prepaid card in order to keep it functional.

Also, with prepaid cards, you don’t have to worry about making monthly payments on time and avoid becoming a defaulter. And, last but not the least, the biggest advantage of using prepaid cards is that they pose on effect on your credit history. No bad credit scored, no nothing!

Which one to buy?

It all depends on your needs and requirements. Precisely, if you’re someone who’s comfortable in paying a deposit fee and availing a credit limit with your card, then secured prepaid cards are for you. On the other hand, if you’re a shopaholic and wish to cap your expenditures, go for prepaid cards.

Prepaid Cards: A Smart and Secure Payment Option

Over the past decade, the internet space has brought about a revolution in the way masses communicate, seek information, make payments, and even shop. With commodities available at the tap of a finger or click of a button, companies too are making the most of this technological advancement and conducting businesses accordingly. Taking advantage of the online payment options, such as prepaid cards. And, the best part, one can get prepaid card online by completing a few, simple formalities.

Organized Payment Processes

Prepaid cards are versatile cards that allow us to make payments and purchases at physical shops and well as online. While shopping online, you get the advantage of saving your card details, which, in turn means that you need not carry your card all the time for making online payments in future.

Secure Payments 

Since millions of people make online transactions every day, companies strive to offer secured payment gateways to users. This means that when you’re making payment using your prepaid card, your card details and your money, both are safe against any kind of cybercrime.

Companies today, urge users to get prepaid card online and make payments through them because they come with exclusive security features. These are as follows:-

• These cards, even if stolen or lost promise intact of cash. One can easily block them by simply making a few calls. 
• They are not connected to any bank as specific and hence, eliminate the chances of giving away any private information.
• These cards can be easily discarded by simply filing closure.

 No Visibility 

Unlike credit cards that are mapped during times of application for loans, prepaid cards are not. They are independent cards that are not linked to any bank account and hence, can be easily and securely used for making payments or purchasing items of any amount, anywhere and anytime.

Excellent budgeting Tool 

Prepaid cards are a great tool for budgeting and managing funds. Users can only spend up to the amount that’s loaded in the card and not beyond. This means that there are no chances of overdrafting or exceeding the credit limits as that possible with a debit or credit card.

The New Generation of Prepaid Cards – Handy, Safe and Secure!

With the advent of prepaid cards in the Indian market, they have certainly gained a lot of popularity not just amid individual users, but as a means of remunerating employees and even presenting a smart gift to a loved one on a special occasion. People, especially the service class, find it convenient to make payments through prepaid cards instead of sparing cash or writing cheques. On the other hand, employers are also able to use them for specific purposes such as, travel cards, payroll cards, meal cards, and as gift cards. IMPS Indepay prepaid cards are touted as the best in the market.

Evolution in the Usage of Prepaid Cards

One of the best advantages of using a prepaid card is to cut down or control employee spending. These cards can be loaded with necessary capital, and the chances of overspending are practically zero. At the same time, the risk involved in minimal as employers have 100% control over the cards. They can restrict the use anytime during the course of its usage.

These cards can be used for a variety of different purposes. These include, making purchases online, at the local stores, withdrawing money from the ATMs, paying bills, and much more.

Prepaid Cards Vs Corporate Cards

Corporate cards mimic as possible business expenses, but there’s a high risk attached to them. Yes! They offer convenience, but at the same time, they offer very limited control. There’s a high possibility of exploiting the funds – misuse and frauds. In the event of the loss of the card, the probability of getting the loaded cash back – instantly blocking the card and ceasing transactions is low.

The advent of prepaid cards, such as IMPS Indepay cards allow the companies to exercise utmost convenience. They are secure, easy to use, and a perfect blend of every possible feature one can think of, in an ideal prepaid card.

The Next-Gen Prepaid Cards

Indepay prepaid cards mark as the advent of a new age in the era of resource management and capital stability. When put to use, these serve as a classic alternative to carrying cash, especially today, when the Indian economy has just gone through the jolt of demonization. Steer away from making cash transactions. Make use of these classic plastic money cards. Prepaid cards also serve as a powerful analytic tools that give you an insight on your expenditures and how to smartly reduce them.

How do Prepaid Cards Work?

For the last few years, prepaid cards have practically raced ahead of debit cards and credit cards. Today, they are the most used form of plastic money and quite productive too. Let’s see how do these prepaid cards work and should you purchase one?

Prepaid cards widely vary in nature, but all of them tend to offer the features as mentioned below:-

Reload Capital Option – This means that most prepaid cards available in the market are not a one-time-use. They can be reloaded with funds and put to use as before. The best example is IMPS Indepay. The company allows its prepaid card users to add money to their cards using IMPS service anytime, anywhere.

ATM Withdrawals – Most prepaid cards come with free nationwide ATM network access. This means that you can withdraw money using your prepaid card at any of these authorized ATMS across the country.

Fees – A nominal fee is charged by most prepaid card issuing companies – either in the form of activation fee, for making deposits or for using out-of-network ATMs. Most issuers also charge a monthly fee, which may be waived off sometimes if one subscribes to the issuer’s some specific packages.

Amount Limit – Different prepaid card issuers have different upper limits set. Read the terms and conditions properly before using a prepaid card.

Protection – Most reloadable prepaid cards available in the market come minus liability or fraud protection function. But, there are some cards that offer purchase protection. These transactions must not be unauthorized in nature. One safeguard policy does follow here – the federal insurance. This means that your money is covered if your card issuer becomes bankrupt.

Expiration Date – Almost all prepaid cards, like debit and credit cards, come with an expiration date. This means that, post a certain time period, you are liable to apply for a fresh card or get the time period extended of an existing card from the issuing company.

Other features – Some prepaid cards allow you to write cheques, make online payments, purchase stuff in a mega store, a shopping mall and even at a restaurant. A rare few cards, even provide reward points such are liable for cash backs or purchases, quite similar to the scheme offered by credit cards.

Prepaid cards are an asset of utility for all age groups. Parents can gift prepaid cards to their kids and load their monthly pocket money in it. Adults can use it for carrying out a plethora of transactions such as paying bills, buying grocery, daily utility stuff and much more. These can also be used as gift vouchers by companies for rewarding their employees.