How Are Prepaid Cards Disrupting Banking

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As we all know that people are using prepaid cards everywhere whether they are doing an online purchase or an offline purchase prepaid cards are now everywhere as you can I add a particular amount in a prepaid card which can be used for any purchases there are many advantages and disadvantages of prepaid card and this pose will discuss about prepaid cards and how are prepaid cards disrupting banking.

For all those who don’t know what is a prepaid card let us first quickly check out the difference between a prepaid card, Debit Card and Credit Card. Prepaid Cards Vs Debit Cards Prepaid card is basically a card in which you put some money on to the card for future use it is not linked to any bank account or to a Credit Union shared account instead of you just load some amount of money and you are all set to do purchases online or offline using the prepaid cards.

Where a debit card is a card which is always linked to your savings account or your current account and if you do any purchase using a debit card all your money will be deducted from your account which is linked with that particular debit card that you are using for your online or offline purchase money is always deducted from the bank wherein prepaid cards the money is loaded into a card and you cannot make a purchase which is prepaid cards Prepaid Cards Vs Credit Cards This might be confusing as both prepaid cards and credit cards have the same logo most of the time as network logo of Mastercard, American Express or Visa are same and it becomes really difficult to recognize which is the prepaid card and which is the credit card.

But the main difference between the prepaid card and the credit card is that credit card is connected to your bank account and you can spend any amount from your credit card whether you are doing an online purchase or offline purchase you can spend any amount from your credit card but with the prepaid card you can only spend the amount that you have loaded onto your card and not more than that so if you are planning to do too much of shopping make sure you add more amount on to your prepaid card because the card gets expire after a particular date.