Don’t have a payment card?
Today you can’t have one.
A card is essential for your online purchases.
But even offline it is essential for all those times when you don’t have cash with you.
And now the use of electronic money is so widespread that it is quite easy to find shops ready to accept cards.
Even for small amounts, the card is now well accepted even among merchants.
At least the more prudent ones, because of course there are always exceptions.
In the field of payment cards we can traditionally distinguish between:
- the so-called debit cards, that is the famous ATM that provides for the debit of the expense to the user’s current account at the same time as the insurance payment;
- The credit cards instead provide the user the charge of expenditure at a later stage than the moment of purchase. However, there is no risk for the merchant because the banking system guarantees payment.
Financial sophistication and consumer needs have then led to the creation of many different types of cards that differ in terms of reimbursement methods and conditions applied (eg cards with cashback, revolving cards, privative cards, or fidelity cards … )
Today I want to talk to you about rechargeable cards.
In this article
- What is a reloadable card?
- What are the advantages of a reloadable card?
- How to choose a rechargeable card?
- Are prepaid cards safe?
What is a reloadable card?
A rechargeable or prepaid card is a card not necessarily linked to a current account that allows you to spend money preloaded on it.
It is therefore neither a debit card nor a credit card.
It works very simply.
It is a kind of virtual wallet that you can fill whenever you want.
Once reloaded, the card functions effectively as an ATM.
By joining a payment circuit (Visa, Mastercard) you can therefore spend the amount contained therein.
You will therefore be able to pay in stores that accept electronic payments and withdraw at an ATM.
You can also use it online.
To pay you will only have to enter a PIN and swipe your card over the reader if you pay in a shop.
Online you will have to type in the card number, the expiry date, and the CVC / CVV number shown on the back of the card.
To recharge it you can pay cash (not for all) or transfer money by bank transfer.
What are the advantages of a reloadable card?
A reloadable card is first and foremost easier to obtain than a credit card.
Today it is not difficult to open an account, but the granting of a credit card is sometimes not immediate and is subject to verification on the applicant.
The rechargeable card, on the other hand, is not subject to particular checks on the person requesting it.
The process of requesting and activating a card is therefore very quick.
In addition, the reloadable card is safer.
Or rather, the level of security is no different than that of a traditional card.
However, it allows you to “risk” only the money deposited on it.
The less money you deposit the less you are exposed to cyber-attacks or card cloning.
With a credit card, on the other hand, you risk that an amount equal to your monthly ceiling will be withdrawn from your account.
The higher the monthly limit you can spend with the card, the more you are prone to losses.
Of course, banks protect you from these types of attacks, but it’s always a nuisance to have to chase your money.
This is why it is chosen by many, especially those who do not trust to give their card details to third parties, for online purchases.
Finally, it can be very convenient for managing collaborators to whom a fixed spending budget can be assigned.
For this purpose, it is very suitable for children to whom the famous “pocket money” can be paid with a recharge of the card. Modern times…
How to choose a rechargeable card?
Selecting a reloadable card is important in order not to risk paying excessive costs or not having an adequate service.
The services depend on you.
Some cards also offer an IBAN and therefore allow you to receive salary credit and generally bank transfers.
Others focus on anonymity, at least for small amounts.
There is also a market dedicated to cards that allow you to spend bitcoins and cryptocurrencies in general.
Among the fundamental services, there is also the possibility of checking all movements online.
Finally, each card usually has a monthly or annual use ceiling.
Depending on your needs and your expenses with the card, you can check if what is proposed by the card issuer is enough for you.
As for the costs, of course, I advise you to be very careful.
There may be an activation fee and an annual fee, but above all, you will have to pay attention to the costs charged for withdrawing cash at the ATM in Italy and abroad and for any top-up costs.
There are very competitive operators, but also operators who behave with greater opportunism.
So it’s worth comparing the various offers.
Are prepaid cards safe?
Prepaid cards are generally a safe tool.
Of course, they are prone to scams, like all cards.
However, they have the great advantage of limiting the damage to what is transferred to them.
It is practically impossible to go red with a prepaid so the risk is limited.
In some cases, there are protection and guarantee systems against unauthorized use of the card.
However, it is not certain that they are always activated, so be careful.
There are good reasons for using a prepaid card.
It can be a convenient tool for managing children.
It is useful for online purchases, especially if you are wary and afraid of falling victim to an online scam.
In some cases, it turns into a real entry-level banking service that allows you to do most of the necessary operations.
In the past, I have also used it to give me a monthly budget and respect it.
I paid a certain amount into the rechargeable card each month and used that amount of money for all expenses.
I understand that this tool is always current and many make use of it.
However, I advise you to always be very careful about costs by selecting the best-specialized operators.
Don’t hesitate to change provider if you don’t like it.
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