How pre-paid credit card works and why you should have one?


Plastic money is the term used for plastic cards that become part of our lives nowadays so astonishingly. Have stashing money in your wallet, purse and pockets of your jeans are now concise into a small rectangular plastic card. Which does not get damaged even when you mistakenly sent your jeans to laundry without checking its pockets?

Moreover, it is quite unsafe to take a lot of cash while you are travelling and moving out. Because cash is easy to spot for pocket pickers or thieves, and it cannot be traced. They can spend that money as they owned. Sometimes it happens when you are not prepared to spend money, but an emergency came up, and you have to pay a larger amount instantly. In case if you have a credit card in your pocket, meanwhile you can deal with that uncertain situation easily.

Pre-paid credit card is those in which we are required to have money in our account before buying any product or to do shopping with it. The money is highly interest loan to the cardholder, and you can avoid that by paying off charges on monthly or yearly bases as describe by policies of that particular bank. 

There are other kinds of polymer cards such as traditional credit cards, debit cards, visa or master cards, cash card or gift cards as well.

Pre-paid credit card is more likely to debit card. It can be an alternative to banks, and it is all are not the same choice which one suits your needs and requirements first.

How does it work?

Firstly we should always check our current balance in the card we are having. Users are more recommended to check through automated SMS services or the internet banking system.  This is important because many banks deduct the fee for monthly or yearly maintenance of that credit card. If you have not used it for a very long time, it is a must thing to know your balance before using it to shop.

The second part is to do purchasing within the budget of our current balance through it. You can use it for shopping for goods from the store at the mall or do online shopping as well. Just to keep in mind that your bill should not be exceeding the current credit you are having on your card. Using a pre-paid card is beneficial for users in terms of security or hackers cannot steal the user’s identity.

If you are shopping with it in-store, the third part is to receive a bill and transitional slip of your card and sign it.

Withdrawing from ATM

For withdrawing, you have to enter your PIN (personal identification number) code of 4-5 digits number for verification in ATM.  If you do not have your PIN code, you can generate it by calling at helpline or ATM itself shows you a pop-up to generate it for using it for the very first time. Once you set it, you need to remember and insert the same PIN for withdrawing money through the Automatic teller machine.

Many companies charge cards for using it on various networks except their network of ATM. Some companies might charge for every ATM network.

Purchasing it

At very Obvious, You can buy anything from the store or at the pump station, buy airline tickets or tickets for cinema shows, concerts, circus, etc. You can make a reservation at the hotel or restaurants. Transfer money online either through a bank account or PayPal or can make a direct deposit of paycheck to your card.

Discount and offers on purchasing through card

Most of the restaurants and outlets in the urban marketplace offer some discount on paying through cards as traditional credit or debit cards.

Discounts at stores, supermarkets, convenience for gas stations there are people using pre-paid cards for this purpose contrary high in ratio.

Credit in your cards are protected

If your information goes right away to the issuer in case of any lost or trapped card in any ATM, they will usually restore your money and will issue your new card. All you need to inform the banker about your mishap quickly. So, that further actions can be taken ASAP to secure and trace it.

Pre-Paid cards help you manage your money

It helps you track and manage your money. So you cannot spend more than you earn or all of a sudden find yourself in bank debt.

You can keep in check balance more frequently at your account through multiple methods such as internet banking, mobile apps or traditional banking.

More options for Facilities

Many cards help you to pay off your bills, taxes, and license fee conveniently. Some credit cards also provide health insurance and travel insurance as well. Additionally, you should carefully go through the terms and conditions of that company for insurance and other commission they will be deducted from it to avoid any inconvenience.

Reload through ATM and Other Options

Some pre-paid card companies often let you reload your credit card through ATM. For that uh have to enter cash from that slot and then insert and enter your card and its PIN codes. So, you can deposit through ATM also. But it varies from different bank account polices and services you are provided with. Some banks do not allow this due to security issues in deposit transitions.

  • Also, transfer money from different bank accounts or financial institutions.
  • It can also reload it at a retail store like Walmart or Walgreens.
  • Use a reload card for Green Dot Money Pak.
  • Have direct deposit your paycheck to your card.
  • Transfer money through PayPal account.

Report lost card immediately

In case of losing your card, you need to inform your issuer as soon as possible. So, whoever has your card right now has less time to rack up your charges. So, it can be traced and blocked as it gets notified and reported for unlawful usage.


There is no need to utilize large chunks of your time in huge ques to get through the counter at a bank branch or to take the headache of managing banking through manual resources. Most people find their way out from lots of troubles and doing manual paperwork to get to the bank. By having a pre-paid credit card can give you relief from certain contradictory alarms and make you save and spend money wisely and more efficiently.  In short, you can take care of all your financial needs and necessity without wasting your time. Just take your credit card, and you can avail it on the go.

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