CASH 101: How a Prepaid Debit Card WorksIn today’s marketplace, there are all sorts of ways to pay for the things you need. From cash, checks, credit, debit, even cryptocurrency, there’s no shortage of different types of payment methods. One popular payment type is a prepaid debit card. These prepaid debit cards are similar to traditional debit cards issued by a banking institution; however, they are not linked to a bank deposit account. Instead, this alternative method to traditional banking allows customers to spend only what they deposit onto the card ahead of time (hence the term prepaid debit card).
Here are a few helpful benefits brought on by prepaid debit cards along with how a prepaid debit card works and why you may need one today.
How does a prepaid debit card work?A prepaid debit card uses funds that are deposited onto the card beforehand. Think of it almost like a gift card with a pre-loadable value. However, you can add funds to your prepaid debit card whenever you wish, shop with it online, use it at an ATM, and make purchases nearly anywhere debit and credit cards are accepted.
Get Started with a Prepaid Debit Card from Check Into CashReady to get started? It’s easy. Here’s how a prepaid debit card works:
First, Find a StoreTo begin, simply visit a Check Into Cash store nearby. Ask to apply for a prepaid debit card. Make sure to bring your government-issued photo ID, too.
Get StartedYou may also set up a direct deposit straight onto your new card if you wish. Plus, you can even get your name added to personalize your new prepaid debit card.
Use Your CardThen, you can use your new card anywhere Visa® is accepted. Shop online, pay bills, visit an ATM, or even use your new debit account to receive a short-term loan from Check Into Cash.
Is a prepaid debit card right for me?A prepaid debit card works great for folks who do not have a bank account, wish to limit their spending, or aim to avoid using a credit card to purchase items online and pay bills virtually. Here are a few ways a prepaid debit card could work for you:
1. Build Responsible Spending HabitsMany people have struggled with overusing credit cards to pay bills and make purchases. It’s easy to do. However, with a prepaid debit card, you’re only allowed to spend the funds you already have. This can help control your spending and avoid extra debt and added interest from credit cards.
2. For the Unbanked ConsumerFor many reasons, some consumers choose not to do business with traditional banks. And in today’s world, that’s perfectly okay. A prepaid debit card can substitute a traditional checking account and enable you to make transactions as normal. Plus, Check Into Cash can help with the rest of your lending needs.
3. Carry Less CashIf you’ve just cashed a large payroll check, stimulus, unemployment, insurance, or other type of check with a large lump sum, you may not want to carry around all that cash. Instead, you can simply add these funds to your prepaid debit card.
4. Pay Bills & Online PurchasesIt’s nearly impossible to purchase things online if you’ve only got cash. So, a prepaid debit card may help by creating a new source of payment to use wherever traditional Visa® cards are accepted.
5. To Receive a Short-Term Loan from Check Into CashSome Check Into Cash loans in certain states require you to have a bank account to receive your loan. No bank? No problem. You may be able to open a prepaid debit card account on the spot that allows you to apply for your new loan.
What’s the Difference: Prepaid Debit Cards vs. Payday LoansPrepaid debit cards work nicely if you’re seeking to limit your spending habits, looking for an alternative banking method, or want to purchase items or pay bills online. These cards, however, offer no extra funds in addition to whatever has been loaded onto the card. If you’re seeking added, additional funds to cover an emergency situation, a Payday Loan may be what you’re searching for. This extra cash can help offer some relief. Then, simply pay it back on your next payday. These two products can work hand-in-hand to help you out. Apply for a Payday Loan. Then, once approved, add your funds onto a prepaid debit card.
What do I need to open my prepaid debit card account?Check Into Cash offers prepaid debit cards to anyone age 18 and older. A credit check is not required, and citizenship status is not considered. All you need to begin is a minimum deposit of $10 and a government-issued ID.
Direct Deposits Made EasyDid you know you can set up direct deposits to your card too? Simply direct deposit your payroll, government benefits, or other payments onto your card. You may be able to access funds up to two (2) days faster.* That’s right, not only can you have direct deposits from your paycheck, but also from government benefits, tax refunds, and stimulus checks.
How to set up my direct deposit?Use the direct deposit form included in your prepaid debit card package to provide to your employer or government benefits office to get signed up. You’ll provide a specific routing number along with your unique account number, name, and additional information. *Compared to the deposit of a paper check. Direct deposit and early deposit capability are subject to the employer or benefits provider’s support of the feature and the timing of the employer or benefits provider’s funding.
CIC on Facebook
The information provided on this website does not, and is not intended to, constitute legal or financial advice. Rather, all information, content, and materials available on this site are only meant for general informational purposes. Information on this website may not include the most up-to-date legal, financial or other information. This website contains links to other third-party websites. Such links are only for the convenience of the reader, user or browser. We do not recommend or endorse the contents of the third-party sites nor are the owners of such third-party sites recommending or endorsing our services. Check Into Cash is not affiliated with nor endorsed by any of the websites, companies or entities mentioned in this blog. See a licensed attorney for legal advice and see a certified public accountant or financial planner for financial advice. No reader, user, or browser of this site should act or refrain from acting on the basis of information on this site without first seeking professional advice. All liability with respect to actions taken or not taken based on the contents of this site are hereby expressly disclaimed. The content on this posting is provided “as is,” and no representations are made that the content is error-free.