Prepaid debit cards come in a bunch of different varieties. Sometimes it can be a bit confusing figuring out which type of prepaid card is right for you. This article gives details of four kinds of prepaid cards (so you can figure out which kind is right for you).

Prepaid debit cards come in several varieties. Each has a different purpose, but all have one thing in common: you get a card that you can use to buy goods or services. With each purchase, as the card is swiped through a card reader (or is used to make an online purchase), the value goes down. These cards are “debit” cards since there is no credit extended to you — you can only spend as much as you have on the card (or in the account associated with the card).

It also may be possible to add value onto some pre-paid cards. Sometimes fees may be associated with these cards, so be sure to ask about the potential costs. Examples of four kinds of common and popular prepaid cards include:

• Prepaid Debit Gift Cards. Think of them as high-tech gift certificates. Some are for use at a specific store or service provider (like the extremely popular Walmart Gift Card). Others are “universal” gift cards that generally can be used at any retailer that accepts credit and debit cards but usually cannot be used to obtain cash from ATMs and other sources.

While prepaid gift cards are great for birthdays or other occasions, they come with potential risks and costs. That’s why you should always read disclosures carefully and ask, for example, if a card has an expiration date that could wipe out a remaining balance after a certain time period (something prohibited under some state laws) or if fees will be deducted when the card is used – or not used. Check back with this site, as we will review some of the best prepaid gift cards for you, so you can get the best deals possible.

• Prepaid debit cards issued by financial institutions for use at a variety of businesses and ATMs. These cards generally can be used at most retailers that accept debit or credit cards. They also may be used to obtain cash from ATMs and are especially useful as substitutes for traveler’s checks. Some pre-paid debit cards also can be used to make purchases on the Internet.

• Payroll cards. With these, an employer deposits salary or benefit payments into a bank account, which an employee can access using a special debit card to withdraw cash at an ATM or make purchases at a merchant sales terminal. “Payroll cards are primarily good as substitutes for paychecks for employees who don’t have a bank account and might otherwise pay high fees to a check-cashing store,” said FDIC attorney Christopher Hencke.

• Debit cards for Health Savings Accounts. Consumers who are eligible under IRS rules for these tax-advantaged savings accounts at banks and other financial institutions can save for certain medical costs, including doctor fees and long-term care insurance payments, and then use a debit card (or write a check) to pay for qualified medical expenses.

Here is a final thought to help you get the most out of your prepaid card. If a prepaid card is lost or stolen: A consumer’s liability for a lost card may vary depending on the type of card and who is issuing it. For example, a pre-loaded card issued by a bank or a major card network may provide more consumer protections than one issued by a retailer, “but to be sure you need to shop around, read the card’s terms and conditions, and find out what to do if you lose your card,” said David Nelson, a fraud specialist at the FDIC.

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1. Prepaid Gift Cards
2. Reloadable Debit Cards
3. Visa CEO Sees Huge Opportunity for Prepaid Debit Visa Cards

Have you ever had the dilemma of thinking of what to give someone who seemed to have everything? Or have you panicked and rushed to the mall on a holiday, only to have to contend with other last-minute shoppers?

Or perhaps a co-worker’s birthday slipped your mind and you’re left stumped and have no idea what to give her?

Prepaid gift cards have long replaced store gift certificates, which used to give an impersonal feel. Nowadays, Visa and MasterCard prepaid cards are very much acceptable. They’re perceived as a more
thoughtful gesture now, because the recipient is given the freedom to
choose what to purchase, so you’re sure that the card holder is getting what he or she wants or needs. It’s convenient because it works just like a debit card and is widely accepted at millions of establishments where Visa and MasterCard debit cards are accepted.

It’s just a secure as a credit card and safer than bringing cash on hand, because the card can be replaced if it gets lost or stolen.

You can get a Visa Prepaid Gift Cards by visiting one of their card providers all over the country. You can also apply online through secure online vendors, such as BCU, Chase, Comerica, Commerce Bank, DeluxeCard, Desert Schools FCU, First National Bank of Omaha, Gift Card Lab, GiftCards.com, iCARD Gift Card, IDT Gift2go, National City, Navy Federal Credit Union, PNC Bank, SunTrust, U.S. Bank, Wachovia, Wells Fargo, West Suburban Bank and Wish Card Collection by Hallmark.

MasterCard Prepaid Gift Cards are available online via the MasterCard website, with five choices, each with its own card limit–Bank Freedom
Prepaid MasterCard from Bank Freedom, Key Possibilities Prepaid Gift Card from Keybank, Natalie Gulbis Gift MasterCard from MetaBank, Choose Your Own Gift MasterCard from RBS Citizens, N.A., and the Washington Mutual Prepaid MasterCard Gift Card from Washington Mutual.

Though the Visa and MasterCard Prepaid Gift Cards work like a debit card, it is not reloadable, so the initial value set by the card purchaser is the only amount that can be spent. Each time a purchase is made, the amount is automatically deducted from the card. Some cards are only for domestic use, which is apparent from the Valid only in the United States statement on the face of the card. Some prepaid gift cards are automatically activated, while some require activation prior to use. To make sure, you just have to check the information packets that came with the card.

If you find out that the remaining balance on your card would not be
enough to cover your last transaction, find out from the partner merchant if they allow split transactions, wherein you’ll pay for part of it in cash or through other methods. That way, you’ll be able to maximize the use of your prepaid gift card.

Related posts:

1. 4 Kinds of Prepaid Cards (and When You Should Get One)