The use of both credit and debit cards have become well associated withfraudulent activity. With the incident of fraud taking placerising significantlyover the last decade, Ring-fencing is one of many viable options that can help reduce the risks associated. A useful tool to utilize in this respect is a prepaid card,which can be preloaded with funds to suit the cardholder’s needs. When the value of the card has been spent, it can effortlessly beloaded up again with the required quantity. As an alternative to carrying several credit and debit cards in your wallet which can be a problematic if lost or stolen, using prepaid Visa cards instead can do the same job with less risk involved.
Below are various advantages that come with using prepaid cards:
Safeguard Financial Transactions
Nowadays most outlets and restaurants accept credit card payments making them much more convenient to use for the cardholder. Nonetheless, it is difficult to know when a credit card is scanned or reproduced through a duplicator, which can provide direct access to your card details, while you still have the original in your possession. In the event that a prepaid Visa credit card is scanned, the possible financial risk is restricted to the amount pre-load on the card and not a cent more. This is since prepaid cards are not connected to a credit provider or linked to your bank account as both credit and debit cards are. This ensures it is a more secure alternative, when compared to conventional payment options.
Guarantee Security on Public Computers
In the event that you need to use your credit or debit card on an unsecure public computer, you may not realize what systems are in place that may be recording the information that you key into the device. So it is smart to exercise caution in such matters by using prepaid cards instead. The potential financial loss will be mitigated to the preloaded value of the card and not a dime more
Manage Expenditures Economically
Unlike credit or debit cards, it is not required to connect a savings account to a prepaid Card, so no personal banking information is necessary. This system supports in mitigating fraudulent activity. Prepaid cards may also be given to family members or friends with a limit on the total spending value. Furthermore, there is not minimum balance required when operating with a prepaid card.
Nevertheless, using prepaid cards come with their own snags. One of the main issues is initially placing value into them. Topping up your prepaid card will require access to funds transferal systems, which will allow you to transfer funds directly from your bank to the card.
Regardless of such negligible shortcomings, prepaid card are one of the most efficient ways reduce fraudulent activity in a progressively developing, cashless economy.
Ensure Easy Travel Abroad
Prepaid cards can be a massive advantageto people travelling to foreign countries, as the value in the card is limited to the amount pre-loaded. They also provide the additional benefit of circumventing against fluctuations in currency exchange rates. Moreover, having to payunreasonablesurcharges whenbuying or spendingabroad using a prepaid card is extremelyrare. In the event a prepaid card is stolen or misplaced, the detriment isminoras you can arrange for a hasty replacement with the bank.
Utilize the Free Trial Periods
Various service providers request for credit card details even during the initial trial period, particularly if they are an international organization. The charges incurred may not even be canceled if you stop their services within the trial period. These businessesusually have a toll free contact number which at times is not available to reach from various regions. Such situationscan often lead to the avoidablecomplications of card cancellation, as well as the time consuming matter of applying for a new card. These complications can be alleviated through using a prepaid card instead.