Prepaid card is a card that can be used to pay for rentals, hotel reservation, airline booking and various online purchases. Different bank, financial institution and private card providing company issue this card to the clients and the client can get this card on the basis of application. One can get it very easily because there is no issue of bad credit. This is prepaid card and money is loaded earlier to make sure you can continue payment and banking activities through this card.
Prepaid card may be two types which are prepaid debit card and prepaid credit card. Prepaid debit card also may be a gift card which an easy to use in any location and may have access to Visa or MasterCard. It’s could be connected with the bank account to make sure and easy to transfer money. It’s also easy to transfer money from checking account to prepaid card online.
But prepaid credit card can be another plastic card and it is called secured credit cards that must have a credit limit on the basis of security deposit in which the account holder must carry on and open this account. It is also a sense of paying the amount in the scheduled time with credit amount.
People’s Perception About Prepaid Card
People may have a misunderstanding prepaid card is a prepaid credit card. But the fact is One has to load the prepaid debit card beforehand. On the other hand, credit card has a credit limit to spend and payments are made after spending. This payment is strongly made at any scheduled time. One can make payment on the basis of installment or at a time according to the terms and condition of the card provider institution.
Understanding of A Prepaid Card
Function of Prepaid Card
It is simple to know the function of the prepaid card. It is called prepaid card and so you have to load money to make sure you can carry on spending. For every spending, the balance from your prepaid card will be deducted. For example, Tracy has a balance of $500 in her prepaid card. She has spent $250 from her prepaid card. The balance is $250. Accordingly this amount can be deducted if any payment is made for any purchase or other spending onward.
Features of Prepaid Card
Keeping a prepaid card means to run checking account or savings account. One can enjoy full banking activities with the help of the prepaid card. The benefit of having prepaid card is you don’t have to pay any monthly charges or fees or any penalty fee. It’s a simple idea just like you can use how much the card has money. More importantly you don’t have to keep the minimum balance on the prepaid card which can be a good deal indeed.
Fees to Pay For Prepaid Card
There may be different types of fees for using prepaid card according to the terms and conditions of the different company. However the new prepaid MasterCard may charge fee $9.95 on the basis of monthly fee. ATM Transaction fee may be $2.5 for every transaction and there is also another fee which is ACH transaction and it starts from $2.50.
How Can Prepaid Card Benefit People?
Prepaid card is one of the convenient cards that can function bank activities easily. When you are not getting any checking account or saving account because of bad credit with chexsystem. This prepaid card can be good option to carry on online purchase and receive online earnings to your prepaid card.
College students can be good candidates for the very first time to get a prepaid card as the parents can load money to make sure the students can spend their tuition fee or any other academic spending.
However it is really easy and safe to use prepaid card to avoid any overdraft issue. You load the money to your prepaid card and spend according to balance. There is no issue of getting overdraft if you have a prepaid card indeed.
Way To Transfer Money From Prepaid Card To A Bank Account
Prepaid debit cards and a bank account are two party to accomplish the transfer money from prepaid card to bank account. It is easily possible to do that when your prepaid card balance is insured under FDIC. Additionally your prepaid card is linked to the bank account.
You have a bank account and a prepaid card as well. Your prepaid card or visa gift card may be loaded with money from different source. When you are thinking as it is convenient to transfer money from prepaid card to bank account, it is simple and easy. Transferring money from prepaid card to bank account can be safe. Any time your prepaid card which is a plastic card may be stolen or lost, the balance may also be gone in case your account balance is not insured under FDIC. However here are two ways on how to transfer money from prepaid card to bank account.
By paying fee
You may have square reader, it is easy to swipe the card. You may also go basic mag strip reader free at the time of sign up. However after sign up, you need to pay 2.27 percent for every swipe. However it is much easier to transfer funds in case you have a square connected to the bank account that you hold. There is another option that you may use by going through many gift card re-sellers in the market who may accept merchant branded gift cards. You can find some payments option including transferring money to your bank account without any fee.
When you want to go fee free options, one can transfer balance gift card balance to the bank account. The card must be connected to the bank account and one can surely transfer money from prepaid card to bank account. But going free for transferring money may take 3-5 business days to accomplish the transaction.
There are more channels to transfer money from prepaid card to bank account. For example Venmo, Pop Money and Square Cash can make the transferring process so easily to bank account through mobile app as well. This transfer is highly completed through national ACH network.
Additional Information To Transfer Money from Prepaid Card to Bank Account
1. How to transfer money from checking account to prepaid card online?
A checking account is commonly a bank account which can be available for depositing any amount. You can withdraw money so easily on regular basis even if you opt for unlimited withdrawals and deposit. This checking account can be used to send money to another account, pay online bill and withdraw money whenever you may need.
However it is easy to transfer money from checking account to prepaid card online. If you want to get this service on instant basis, you have to cost up to $3.00 according to the figure of the transaction. Transferring money to prepaid card can be completely free if you wait for two or three days.
To make that happen, account number and routing number are required to submit during transferring process. This transaction can be completed on the website of the bank where your checking account has been issued. Then you have to add this prepaid card to bank account which is integrated with prepaid card. After that, you will get an option for test transaction with a small deposit to make sure you are transferring your money to your own prepaid card. This way one can transfer money from checking account to prepaid card online so easily.
2. How to add money to someone else’s Netspend card?
Netspend is a prepaid debit card or prepaid card and it is also so simple to add money to someone else’s Netspend card. You can use this card to feed your various important needs in relation to baking activities. You can send money to your friends and family Netspend card, purchase online and paying online bill. Instant cash back can be a good deal to go with this card.
There are many option to add money to someone else’s Netspend card. First of all, direct deposit is one of the easiest way to add money from paycheck, government benefits. Additionally, there are 1, 30,000 Netspend reload location where you can add money easily to your Netspend debit card.
Bank transfer is another good and easy option. Whether you have checking account or saving account, you can add money from any bank account online issued U.S bank account.
Netspend debit card also can get transaction from PayPal account and it is one of the big needs in our life. So PayPal user has a great opportunity to add money to Netspend debit card.
Now that online banking is indispensable part of our life, we need to know more details this type of prepaid card, debit card, credit card and any other card that make banking activities so easy and fast. There are different banks and card providing company who continue to update their features and facilities. Part of the features, it is also easy to transfer money from prepaid card to bank account and this transaction can be an important need to make your banking activities so smart, time saving and cost efficient.