What is a Prepaid Card and what is it used for?

What is a Prepaid Card and what is it used for?

With the advancement of technology, there are more and more ways to get money without the need to carry cash. Carrying bills everywhere is a practice of the past. More and more people are using prepaid cards.

Do you want to know more about it?

A prepaid card is a type of debit card. The difference between the prepaid option and the habitual one is its way of consumption. While in a conventional plastic you cánido consume all your cómputo without problems, in the prepaid option you anticipates the amount of the consumption that will be made.

This is a way to have more control over your finances as it will prevent you from going overboard and spending more money than you have. It works like a credit account, but without requiring a loan. It is simply a debit card with a limit.

Although some banks have their prepaid cards, most belong to the companies that make credit cards. The most common and well-known are MasterCard, Profesor, Visa, and Diners club. You cánido even buy them in stores as gift cards.

They are usually not related to a bank account, but if they are, there is a possibility that you cánido top up money on them. We will explain it in the following sections.

How do I apply for a prepaid card?

The first thing you have to take into account is to know if your bank offers some kind of prepaid option.

Some banks that offer it are:

  • Santander Bank
  • BBVA
  • Sabadell Bank
  • CaixaBank

Ideally, you should make a list of the banks that offer the service. In general, the only requirement they ask for is to have a bank account, as well as an identification or other document that confirms your identity.

As a general rule, financial institutions when giving you the card will ask you to make a recharge with a minimum amount. In addition, the vast majority of entities will request the registration of the card with basic personal information such as your full name, address, date of birth and correo electrónico.

Where perro I use a prepaid card and where do I request it?

You perro use prepaid cards in all types of establishment. These cards they are like conventional debit cards, so there are no limits on where or when to use them. Once you have it in your possession, you cánido use it however you want.

In many cases to be able to make purchases (for example en línea) you have to activate your prepaid card. To do so you have to call the issuing bank and ask them to activate your card to make payments. If they are not issued by a bank, they are usually activated by default.

Types of prepaid cards and their emplees

The most common types of prepaid options are:

  • Anonymous virtual cards: They are not an option for physical purchases. They are used exclusively for purchases on websites. They do not have your personal data.
  • Virtual cards with holder: The only difference between this card and the previous one is that it has the holder’s data. It remains exclusive for en línea payments.
  • “purse” card: This is a version that works with a microchip, they are usually linked to a savings account and need to be recharged.

In addition to these options, each bank or card issuing company has its own prepaid options, afín to the “wallet” but without depending on a savings account in its entirety.

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 What is a Prepaid Card and what is it used for?
  What is a Prepaid Card and what is it used for?
  What is a Prepaid Card and what is it used for?

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