Have you heard the term “reloadable debit card” and wondered what it means? You’ve come to the right place to find out (we know EVERYTHING about debit cards, including “reloadable” and “non-reloadable” cards).

A reloadable debit card is a debit card that can have funds “reloaded” on it. Simple as that.

Some cards, like prepaid gift cards, can only be used one time, and once the funds on the card are depleted, you basically just throw the plastic card away, because you can’t reload funds onto the card.

A reloadable debit card allows you to deposit (or “load”) more money onto the card. Typically, reloadable debit cards are cards that have the MasterCard, Visa, American Express, or Discover logos on them (that is, they are “network branded cards”).

Many reloadable debit cards also have the logo of a “reload” network on them. One famous reload network is the GreenDot network. Other, newer, load networks include the MasterCard rePower network, and the Visa ReadyLink network.

Here’s what MasterCard says about their “reloadable MasterCard debit cards”:

The MasterCard rePower Load Network is a new service from MasterCard that allows you to add money to your eligible MasterCard or Maestro^® prepaid cards at any of the thousands of participating retailer locations throughout the U.S.*
Add Cash Now. Use It Now
With MasterCard rePower, your money is immediately available for you to spend anywhere that Debit MasterCard or Maestro Prepaid Cards are accepted.

Reliable
MasterCard rePower uses trusted,MasterCard network technology. And with a MasterCard card, you have zero liability for unauthorized purchases.**

How to Reload
Simply visit a participating retailer with the cash you want to add.* There are two methods to reloading your card, depending on which the retailer supports:

• The Card Swipe Method
  At locations that support this method, your card is swiped and the load amount is entered at the register. Your cash load will be instantly available.
• The Green Dot^® MoneyPak Method
  At locations that use Green Dot MoneyPaks, simply purchase the MoneyPak in the amount of the load you want to make. Then follow the instructions on the MoneyPak to complete the load to your card. Your cash load will be instantly available.

Read more on the MasterCard website.

Visa and GreenDot explain their load networks in a similar manner.

Related posts:

1. 4 Kinds of Prepaid Cards (and When You Should Get One)
2. Visa CEO Sees Huge Opportunity for Prepaid Debit Visa Cards
3. MasterCard is Diggin Their Prepaid Debit Card Volume as Well

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.

Related posts:

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

Yesterday, we mentioned that Visa is lovin’ the prospects for prepaid debit card growth in the U.S. and around the world.

It turns out that MasterCard is a big fan of prepaid debit as well.

In their quarterly earnings call on July 30, MasterCard announced the following:

The number of MasterCard branded cards worldwide grew 1.2% to 959 million in the quarter, and excluding the U.S., the rest of the world card issuance grew 10%. The majority of this growth was principally driven by issuance of MasterCard debit and prepaid cards. As of June 30, 2009, there were approximately 1.6 billion MasterCard and Maestro branded cards issued.

(We highlighted the part about prepaid debit and debit card growth). Folks, the MAJORITY of MasterCard (and Visa) payment card growth is in prepaid and regular debit. Prepaid and debit are the wave of the future, and the big financial services companies are bankin’ on it.

Related posts:

1. Reloadable Debit Cards
2. Visa CEO Sees Huge Opportunity for Prepaid Debit Visa Cards
3. 4 Kinds of Prepaid Cards (and When You Should Get One)

Visa’s CEO is very optimistic about the prospects for Visa prepaid debit cards, both in the U.S. and around the world. Visa sees the prepaid debit market as being a $1 Trillion (yes, that’s TRILLION) market in the U.S. (and a $3 Trillion market around the globe).

In a conference call on July 29 (discussing Visa’s earnings in the second quarter 2009), Joseph W. Saunders (Visa Incorporated’s Chairman of the Board and Chief Executive Officer) had the following optimistic comments about the prepaid debit card market.

We also continue to make very nice headway in the prepaid space, not only here in the U.S. but in a number of regions globally. Prepaid, which is a natural extension of our already successful debit presence, is a business that we have been in for quite some time in the U.S. and in which we are seeing enormous opportunity internationally.

Domestically we currently run 66 different programs with 38 states for government disbursements. In the healthcare arena, seven of the top 10 insurance companies offer Visa spending account cards.

Other important categories in which we are active and have been quite successful include gift cards, general purpose reloadable cards, and payroll programs, to name a few.

In the U.S., we believe this is a $1 trillion potential market while globally it could be as high as $3 trillion.

Stacked up against worldwide Visa payment volume for the 12 months through March of $2.7 trillion, it’s easy to see that even a nominal penetration of this market could be needle moving for us.

The largest opportunity globally is penetrating the under-banked segment with general purposed reloadable cards. The under-banked includes both the under-served, those who don’t have access to mainstream financial services, and those that choose for a wide variety of reasons alternative financial services.

In the U.S., about $80 million individuals fall into the under-banked category. Globally the under-banked may be a majority of consumers. Our success in debit in the U.S. should provide key advantages as we further penetrate the prepaid space.

Related posts:

1. Reloadable Debit Cards
2. MasterCard is Diggin Their Prepaid Debit Card Volume as Well
3. 4 Kinds of Prepaid Cards (and When You Should Get One)