Prepaid Debit Cards Take A Bite Out Of Check Cashing Shops Prepaid Debit Cards Versus Check Cashing Services Visa Card Without Good Credit Mastercard Card For Bad Credit

Prepaid debit cards are eating away the customer base of many check cashing services. Gone are the days when workers had to visit the check cashing store to have their paycheck or government check cashed for fees ranging from 1.5% to 10% of the check amount. People who relied on this service now have a new option, one that is much more convenient and less expensive.

Leading the way with this new financial tool is Visa and Mastercard. Both have prepaid programs that they have licensed out to a number of vendors. Aside from the convenience of the card, using the debit card also has the advantage of not requiring the customer to carry their entire paycheck around in cash. The card is “reloaded” either by direct deposit or through a network of retail outlets. If the customer needs cash they simply withdraw it from one of millions of ATMs that accept Visa or Mastercard.

Gone are the days of standing in line at the check cashing store and leaving with a wad of money in your wallet. Debit cards can be funded by direct deposit or using one of thousands of retailers that will provide the servie. The card is the only thing you need to make purchases, pay bills or get cash.

The debit card is not a credit card. The card is simply an electronic wallet for your own money. No credit check is made at the time of application and virtually everybody who applies for a card is accepted.

It is much safer to carry the debit card rather than cash, however there is a downside to the amount of liability you might be exposed to if you lose your card. Unlike credit cards, you only have two days to report the loss or fraudulant use of your card. If you report within that time frame you are liable for the first $50. If you take longer than 2 days, your liability jumps to $500. If you wait longer than 60 days you are responsible for the entire loss.

So how is this different from credit card liability. The big difference is we are talking about someone taking money out of your bank account, not your account with a credit card. The bank can take up to 10 days to investigate and you are out that loss for at least that amount of time. Many of the debit card issuers offer free online statements. It would be wise to check them daily to insure your card has not been compromised.

So how do these cards make money for the issuers? If you are thinking about using a debit card, make sure you carefully read the terms and conditions and fee schedule. There are many programs available on the internet and they all have different fee schedules and features. Look for a card that does not charge you to reload if you use direct deposit. Look for a card that will allow you to see your balance online or via telephone without a charge. If you shop carefully, you will definitely save money compared to the check cashing shops.

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