Prepaid credit cards are offered by Visa, MasterCard, and other issuers as a convenient borrowing tool. It is usually customers with tarnished credit who resort to prepaid cards because they have limited access to standard borrowing solutions.
Prepaid Credit Cards
Prepaid cards are also called reloadable and allow users to pay bills, make store and online purchases, add money, and control their spending. A prepaid credit card allows customers to deposit cash through money transfer or direct deposit. Another option is to add cash. To customers looking for prepaid credit cards Canada offers plenty of choice, from products offered by credit card companies and banks to store cards.
Reloadable Credit Card
Reloadable cards are offered by big banks such as the Royal Bank of Canada and Scotiabank. Banks feature business and individual cards of two types, based on the funding option. There are cards with recurring and one-time funding options. Business cards are suitable for employees and customers and often feature sales team, partner, and employee incentives and rewards. Rebate programs are also available.
American Express Prepaid Card
The AMEX card can be used at in-store locations, online, and for mail-order. There are some limitations, however. Customers cannot use a prepaid card to make rental reservations. Temporary cards are also offered but they cannot be used to make ATM withdrawals and are non-reloadable. The PIVOT Visa Card, for example, is offered by Petro-Canada and offers generous fuel savings. The mastercard prepaid card is one alternative that is offered by issuers such as the Bank of Montreal. This is a travel type of card for convenient shopping and secure purchases.
Visa Prepaid Card
Visa also offers reloadable options as a safe and convenient alternative to checks and cash. There are different funding options, including automatic transfer of government disbursements, tax refunds, and paychecks. The visa gift card is another product that can be used as a standard debit card. It is a type of prepaid card that allows users to make multiple purchases. This is a non-reloadable card with a pre-set value.
Walmart Prepaid Credit Cards
The giant Walmart offers prepaid cards that can be reloaded by bank transfer, direct deposit, check, and with cash. The good news is that there are no reload fees. With the Walmart credit card online shopping is made easy, and no purchase fees apply. This card is suitable for people with tarnished and fair credit because credit checks are not required. Walmart offers different plans, including more comprehensive and basic. With the basic plan, the card can be used as a standard Visa or MasterCard. There are no fees on ATM withdrawals, but other fees apply. Customers are charged for teller cash withdrawals, swipe reloads, and balance inquiries. There is also a fee for stolen and lost card replacement. Other fees apply, including foreign transaction and monthly service fees. On the good side, holders can use the card to transfer money to friends, family, and third parties at no added cost. With the Walmart Mastercard Canada based holders benefit from rapid reload options and other extras.
Paypal Prepaid Credit Card
The prepaid credit card by Paypal is issued by MasterCard as a reloadable option. Customers are also offered store credit at certain locations provided that the loaded amount is $150 or hider. The purchase is $5 and applies when you buy a prepaid card.
RBC Prepaid Credit Card
The Royal Bank of Canada offers prepaid cards and gift cards to its customers. This is a type of store value card that can be used to make purchases by phone, online, and in multiple in-store locations. Different programs are also available to employees, including loyalty rewards, corporate gifts, performance recognition, and door prizes. RBC cards also feature programs and incentives such as dealer and sales incentives, new product and line launches, consumer promotions, and safety awards. Business management programs are also offered, including sales commissions, petty cash, relocation, insurance coverage, and other incentives. The RBC credit card is a good choice for businesses that wish to design a program of their choice.
How Do Prepaid Credit Cards Work
Prepaid credit cards are AMEX, MasterCard, and Visa-branded cards that allow users to deposit funds and make purchases up to the available limit. The purchase amount is subtracted from the available balance. Basically, a prepaid card works much like a savings or checking account. One of the main benefits is that interest and penalty charges are not assessed.