Weighing the Benefits of Prepaid Debit Cards

Many Americans use some sort of prepaid debit card, for a wide variety of reasons. Some prefer them for their versatility and the ability to use them for everything from paying bills to spending money at retailers. 它们也很受7个国家的欢迎.1 million American households that, for whatever reason, do not hold a bank account.¹

A prepaid debit card is established when an individual provides cash to a financial institution in exchange for a card that can be used like any debit card or credit card, except it is limited to purchases in an amount not to exceed the card’s cash balance. When the balance runs low, or is exhausted, the card can be reloaded with additional cash.

There are reasons why you might consider using a prepaid debit card, including:

• 针对信用不良的个人, who may be unable to get a credit card, carrying a prepaid debit card means they don't have to carry cash.
• For individuals who have trouble managing their spending, prepaid debit cards can act as a restraint on poor habits.
• As an alternative to credit cards for college students, they can help protect parents from their children's excessive spending, while teaching important budgeting lessons.
• They offer potential protection against the loss of cash when traveling.
• 在一个数据盗窃的世界里, prepaid debit cards do not house personal data, such as your Social Security number or bank account information, shielding that data in the event of theft.

它们也有缺点，比如:

• They do not provide any advance of credit, like a credit card. So if you have an emergency expense that exceeds your prepaid debit card balance, 这张借记卡的用途有限.
• Prepaid debit cards may come with considerable fees, 包括开户费用, 交易费用, 每月收费. Depending upon the balance, fees can represent a high percentage of your cash value.
• You will not earn reward points or rebates, like you might with a credit card.

If you are considering a prepaid debit card, be sure to comparison shop. The fees can vary widely, so look for an appropriate card. And keep yourself informed about your running balance so you don’t find yourself short on money.

1. 联邦存款保险公司.gov, 2021年12月17日

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