Prepaid Debit Cards

Prepaid debit cards look just like a regular credit card, and have many of the same advantages of a credit card. However, there are also many features a prepaid debit card can offer consumers, which make them even more appealing than a standard credit card.

The major difference between prepaid debit cards and credit cards is that with a prepaid debit card, you are spending money you have already deposited into your account. Hence, prepaid. Therefore, even though the card is endorsed by Visa® or MasterCard® – their logo is stamped on the card, just like a regular credit card – you do not have to pass a credit check since you are not establishing credit.

Because a credit check is not required, prepaid debit cards open purchasing capabilities to consumers who have not had the luxury of buying with plastic before: low-income families, the un- and underbanked, and people with bad or no credit.

Prepaid debit cards can also help you control your spending since a reloadable debit card allows you to only spend up to the amount you have pre-deposited into the account. Parents of teenagers find additional benefits with prepaid debit cards – by giving their child a prepaid debit card they can help control the amount of funds that are loaded onto the card (the child’s allowance, for example), as well as monitor how the funds are spent.

Additional funds can be loaded onto the card via several means. The consumer can always return to the retail store where the card was originally purchased for a reload PIN. Funds can also be added at an ATM kiosk or online through the bank or issuer’s website. Specific reload instructions vary by card issuer.

epay offers prepaid debit cards through three different providers: Futura Card Services, NetSpend Corporation and Green Dot Corporation.

Key Industry Facts:
53 million (25%) of Americans are un-banked (source: MRI data)
109 million (50%) of Americans are under-banked (source: MRI data)
23%+ of Americans are maxed out on credit cards (source: bankrate.com)