Prepaid Cards

What is it?

  • The cards typically are loaded with funds by the consumer or a third party, such as an employer.
  • Consumers can use the cards to make payments, store money, get cash at ATMs, receive direct deposits and send money to other consumers.


Advantages

  • you can’t overspend or incur interest charges

Disadvantages

  • Fees are the main downside
  • to return merchandise retailers will issue the refund only to the same card so you have to make sure you keep the card