Advantages and disadvantages of prepaid cards

A prepaid card is a card used similar to a credit card or a debit card while purchasing. It is similar yet different from a credit card. A prepaid card may be used when you are purchasing some item online or in a shop which accepts a credit card. At the same time, it is different from a credit card because it does not allow any credit.
Advantages: 1. There is no need to carry cash whenever and wherever you travel. So it is convenient especially for travel abroad. The modern day shopper prefers the use of a card instead of cash everywhere, be at shops or online. And use of a card is much more safer than carrying a lot of cash around. 2. You cannot go overboard with your spending while using a prepaid card. When using a prepaid card, the amount spent is your money. The prepaid card holds as much amount as you load it with. Since you know the amount you have in your card, and as it is limited, your expenditure becomes restricted. 3. A prepaid card is easier to apply for and acquire compared to a credit card. Many prepaid cards are offered online, so application process is free of hassles. And it is a card where you load your money, so there is not much procedures to complete before approval of the card. The only procedure is the clearing your identity. 4. Only a minimal fee for purchase is charged on the card.
Disadvantages: 1. You do not have a credit facility. Using a credit card means purchasing an item now and paying it later. 2. You have a limited amount to spend on your prepaid card. Your expenditure may be limited but you may not be able to use your prepaid card in an emergency if the amount is more than the limit on your card. 3. Every time before use you should ensure that the shop or website or the place where you are planning to use it accepts the card.