Prepaid & Debit Cards FAQS

While prepaid debit cards are convenient for making in-person or online transactions, and are widely accepted, there are a couple things you should keep in mind while using your card. Gas Stations, Hotels and Restaurants may put a hold on your prepaid card for the amount equaling your estimated bill. This amount may remain unavailable for couple days; you need to make sure you have enough funds if you plan other transactions. Or to avoid a hold on your account at a gas station you can choose to pay inside for the exact amount.

Prepaid debit cards today have more built-in features than ever before! And while credit cards are still better for those who want to build credit, nevertheless there's something you can do even with a prepaid card. If you choose a card that provides a short-term loan option (view Best Prepaid Cards for the complete list of offers). You can apply for it in case you are short of cash before your next paycheck and as you pay this loan back, your payment is reported to credit bureaus. If you sign up for a bill pay, and pay your utilities, rent, cable, phone, insurance and other bills, your payments will be reported to PRBC, a national credit reporting agency so that you can build your...

Debit cards are tied to your bank account and prepaid cards are not. To start using a prepaid card you need to load it by making a direct deposit of your paycheck or government benefits, a transfer from your bank account, or by making in-person deposit at one of the retail locations. With prepaid cards you cannot overdraft or overspend, you can only spend what you have pre-deposited.