Prepaid ATM Card : The Benefits and Options

Chances are that you have heard of a prepaid debit card but you might not have heard of a prepaid ATM card.  Initially when ATM cards were developed during the 1970s, they had limited benefits.  The primary purpose was to withdraw money, make a deposit, or check an account balance and nothing more.  However, with growing consumer demand and improved technology, ATM cards now provide more services, have more features, and offer improved benefits.[br]

Chances are that you have heard of a prepaid debit card but you might not have heard of a prepaid ATM card.  Initially when ATM cards were developed during the 1970s, they had limited benefits.  The primary purpose was to withdraw money, make a deposit, or check an account balance and nothing more.  However, with growing consumer demand and improved technology, ATM cards now provide more services, have more features, and offer improved benefits.[br]

Chances are that you have heard of a prepaid debit card but you might not have heard of a prepaid ATM card.  Initially when ATM cards were developed during the 1970s, they had limited benefits.  The primary purpose was to withdraw money, make a deposit, or check an account balance and nothing more.  However, with growing consumer demand and improved technology, ATM cards now provide more services, have more features, and offer improved benefits.[br]

By the late 1980s, debit cards were introduced to the public, which allowed them to do everything the ATM card could do plus make purchases or make payments.  Just as with an ATM card, the debit card required a special PIN (personal identification number) specific to the cardholder.  For any purchases or payments to be made, the user had to use a keypad to enter the PIN.

Over time, online purchases became available with a debit card whereby the PIN did not need to be used.  This was possible when MasterCard and Visa created a partnership with banks and credit unions.  The benefit was that people could make purchases from online merchants from all over the world, again without using the established PIN.  With this being such a success, credit card companies, and financial institutions teamed up again to offer the prepaid debit card.

With a prepaid debit card, the cardholder would deposit money into the account and money available on the debit card would be that exact amount.  Also known as a “loaded card”, this was a huge advancement.  These cards carry the MasterCard or Visa logo, which allows them to be accepted around the globe.  Typically, the prepaid debit card was perfect for people with poor credit or those with insufficient fund history.[br]

With the prepaid debit card being so successful, another change emerged in the form of the prepaid ATM card.  These cards also bear the MasterCard or Visa logo, which means that online purchases from merchants all over the world could be made.  Just as with a prepaid debit card, the prepaid ATM card is loaded with money and that amount of money is used to make purchases or pay bills.  Once the balance on the card starts to deplete, more money would be loaded.

Depending on the prepaid ATM card, as well as financial institution, a limit as to the amount of money a person could load might exist.  Therefore, anyone interested in securing a prepaid ATM card should make sure all the terms and conditions are understood.  Just as with the debit card, this type of card also offers tons of benefits.  Because the card would have a MasterCard or Visa logo, it could be used for everyday purchases or expenses, as well as travel, emergencies, and more.  A parent of a college student could even get a prepaid ATM card that connects with the parent’s bank or credit union so the student would have funds if needed.

The primary benefits of a prepaid ATM card are convenience, worldwide acceptance, and having a way of carrying money safer than cash.  Because the prepaid ATM card is loaded with money, meaning funds are available the individual never has to go through a background check, credit check, or employment check.  Obviously, this would make the prepaid ATM card perfect for people with bad credit.

Most banks and credit unions offer a prepaid ATM card that can be loaded repeatedly and in fact, most offer automatic loading.  Using the parent with a child in college scenario, once the parent deposits his or her paycheck, the automatic loading would put a predetermined amount of money on the card.  That way, the student constantly has funds available but at an amount the parent decides.  As you can see, the prepaid ATM card has tons of benefits, making it a great choice in most cases.