When it comes to the advantages of using plastic money instead of cash, there are many benefits. With security and instant access to money, the payment cards also allow customers to avail their financial assets anytime, anywhere in the world. It also saves them from lengthy transactions as a single swipe of their card is enough to pay off their bills.
When going a bit deeper into the world of payment cards, we get to see that there is a great similarity between two major types of cards, which are debit cards and co-branded prepaid cards. It has been noticed that customers are often quite confused about which is one to choose. If you too, are encountering the same dilemma, read on to learn what the basic difference between the two is, so that you can decide which one is a better option for you.
In order to sort out the confusion, in this article, we are going to outline the differences between debit cards and co-branded prepaid cards. Read on to discover more.
2. Credit Inspection For the issuance of a prepaid card to customers, usually no credit check is performed. However, prior to issuing a debit card, banks usually go through the credit score and rating of the customers to ensure that they are responsible enough to repay on time if they ever need a loan.
Maintenance and Service Charges When a transaction is made via a debit card, banks usually deduct a fixed fee as service charges. However, the usage of co-branded prepaid cards is usually free of cost. Rather, these cards provide additional incentives to the users.
Credit Check For Eligibility When it comes to the issuance of prepaid cards, the cards are usually issued without any credit check. However, for debit cards, a thorough check is conducted for customers' previous credit scores, especially if the customer wishes to avail the overdraft facility.
Service Charges Co-branded prepaid cards are usually free of service charges. Not only this, many authorities even provide a free replacement, in case of card theft or loss. However, most banks charge a fix price when transactions are made via a debit card.
Despite these differences, the usage and cancellation policy for both types of cards is quite similar. Whether it is a prepaid card or a debit card, both can be used 24/7, all over the world.
Whether it's a debit card or prepaid card - both helps the users to keep a prompt record of their expenditure. However, co-branded prepaid cards also allow controlling these expenses by staying within the limits.
When going a bit deeper into the world of payment cards, we get to see that there is a great similarity between two major types of cards, which are debit cards and co-branded prepaid cards. It has been noticed that customers are often quite confused about which is one to choose. If you too, are encountering the same dilemma, read on to learn what the basic difference between the two is, so that you can decide which one is a better option for you.
In order to sort out the confusion, in this article, we are going to outline the differences between debit cards and co-branded prepaid cards. Read on to discover more.
2. Credit Inspection For the issuance of a prepaid card to customers, usually no credit check is performed. However, prior to issuing a debit card, banks usually go through the credit score and rating of the customers to ensure that they are responsible enough to repay on time if they ever need a loan.
Maintenance and Service Charges When a transaction is made via a debit card, banks usually deduct a fixed fee as service charges. However, the usage of co-branded prepaid cards is usually free of cost. Rather, these cards provide additional incentives to the users.
Credit Check For Eligibility When it comes to the issuance of prepaid cards, the cards are usually issued without any credit check. However, for debit cards, a thorough check is conducted for customers' previous credit scores, especially if the customer wishes to avail the overdraft facility.
Service Charges Co-branded prepaid cards are usually free of service charges. Not only this, many authorities even provide a free replacement, in case of card theft or loss. However, most banks charge a fix price when transactions are made via a debit card.
Despite these differences, the usage and cancellation policy for both types of cards is quite similar. Whether it is a prepaid card or a debit card, both can be used 24/7, all over the world.
Whether it's a debit card or prepaid card - both helps the users to keep a prompt record of their expenditure. However, co-branded prepaid cards also allow controlling these expenses by staying within the limits.
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Credit card programs are good for those customers who yet have bank accounts and are worried about not exceeding their expenditure limits. But, for those cardholders who don't have bank accounts yet want to avail quick shopping facilities, http://www.gobankpro.com/co-branded-cards.php are the best option.
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