How does a rechargeable prepaid card work?

How does a rechargeable prepaid card work? 2

Rechargeable prepaid cards occupy a special place in the field of payment cards. While they can be used for most of the transactions offered by a traditional credit card, such as purchases in a physical store, withdrawing money, sending or receiving a transfer or online, they are different from traditional bank cards.

They are not linked to a bank account, and do not allow you to pay on credit or exceed the amount of money you have already loaded. So why and how do you use a rechargeable prepaid card? We answer all your questions in this article.

What is a rechargeable prepaid card?

A rechargeable payment card is, just like a classic bank card, a means of payment that can be used in France and abroad, in physical stores as well as on online shopping sites. However, it is different from a credit card since it is not linked to a bank account, but is topped up directly by its owner.

How to use a rechargeable prepaid card?

To use a rechargeable payment card, nothing could be easier!
You just need a valid ID (French or international depending on the type of card) and a cell phone number. Via your smartphone, you can then carry out all the activation and account creation processes.

Once you have chosen the type of card you want to use, all you have to do is top it up and then use it as a means of payment or withdrawal. You can top up a prepaid card:

  • By top up voucher that you will find in a compatible point of sale such as a tobacconist’s (you can choose the amount of the voucher and pay it by card or cash) ;
  • By credit card
  • By bank transfer or sometimes via Paypal.

After creating your personal space, activating and then topping up the card while respecting its ceiling, you will be able to use it to pay at any time in any physical or online business, or to withdraw cash, in France as well as abroad. The card is funded directly from the amount you have loaded and is not linked to any bank account. Therefore, as soon as the amount is exhausted, you will have to top up the prepaid card to use it again. Prepaid cards are generally valid for 1 to 3 years

Prepaid payment card for which profile?

Using a rechargeable payment card has many advantages. Indeed, there are many types of prepaid cards that can be adapted to certain profiles according to their needs.

An ideal card for young people

As rechargeable prepaid cards rarely require income conditions, they are a safe way to keep your savings as a young student without necessarily having a bank account. Also, some prepaid cards are accessible to minors, making them an ideal way to store pocket money while serving as a means of payment.

Easy to use abroad

Since it is also valid abroad, the rechargeable prepaid card is an excellent means of payment when traveling. Indeed, it allows you to set a budget by topping up the card before leaving, which helps you manage your expenses. An employer will be able to easily control the expenses of a worker on a mission abroad. In addition, the card can be rechargeable remotely. Parents can thus credit the prepaid card of their child traveling abroad as needed and help him quickly in case of financial problems. Finally, a rechargeable payment card is more secure than a traditional bank card since it is impossible to spend more than the amount loaded, and is therefore a safer choice in case of loss or theft in a foreign country.

Secure online shopping

Do you often shop on websites, but are concerned that your credit card information is not kept safe? By using a rechargeable payment card, you can control your spending while avoiding disclosing your credit card information to sites that could be malicious.

Purchases for the people banned from banking

Rechargeable prepaid cards are accessible to everyone, even to people who are “bank-defaulted”, i.e. who have been declared to the Bank of France and registered in the FCC (Fichier central des chèques) or the FICP (Fichier des incidents de remboursement des crédits aux particuliers). The card must be topped up before being used and does not grant overdraft authorization. Prepaid payment cards are therefore a real opportunity to have access to an alternative means of payment. Reliable and secure, everything is gathered to replace a bank card

Which prepaid card should I choose?

There is a wide variety of rechargeable prepaid cards, each with its own specific applications. So, to choose the right card, you’ll first need to determine your payment needs – are you an online shopper? Are you looking for a card to use when traveling abroad? Or do you just want to have more control over your day-to-day spending and stay on budget?

Answering these questions will help you determine which type of prepaid card is right for you. If your goal is to save money, you should also know that some rechargeable payment cards work in partnership with stores and businesses to offer good deals throughout the year to their users. Finally, don’t forget to determine in advance the limit you want to give to your card before choosing it. If it is too low, you may have to reload your card too often, but if it is too high, you could exceed your budget at any time without realizing it!

In short, a prepaid card is topped up regularly by the owner of the card. The cardholder is therefore in total control of his or her budget and does not risk spending more than he or she should, since the card does not allow for overdraft. Safer than a bank card, the prepaid card is ideal for young people, for going abroad or for making purchases on the Internet.

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