Tuesday, May 10, 2011
Why Prepaid Cards are best when going on holidays
With the holiday season upon us, credit and debit card companies are bracing themselves for a huge rise in credit and debit card fraud and are also warning the public to be vigilant whiles on holiday.
To counter all these problems and to have a peaceful holiday, why not take a prepaid debit/credit card with you on holiday? There are several prepaid debit and credit cards on the market and majority of them come with excellent features for use abroad. Here’s why it is a good idea to take a prepaid debit or credit card with you on holiday;
Prevent Credit/debit fraud
Debit /credit cards fraud happens both at home and abroad but the risks are always greatest when on holiday. We hear horrendous stories from victims of card fraud and how it impacts their lives negatively.
Because prepaid credit/debit cards are not linked to bank accounts, when they are stolen, it is easier to limit the damage to just the card.
Fraudsters can empty your accounts or rack up huge credit card bills in your name but should your prepaid card get stolen on holiday, you only lose the balance on the card.
Most bank credit and debit cards charge huge commission and interests when used abroad, something you don’t experience with prepaid debit/credit cards.
As prepaid cards have grown in popularity, issuers have given them special features such as allowing you to spend abroad without foreign currency commission or transaction charges. These types of prepaid cards save money compared to bank credit cards.
Taking a bank debit or credit card on holiday means you ran the risk of coming home to a huge credit card bill; prepaid cards on the other hand saves money as it will limit your spending abroad.
Also with exchange rates, it’s sometimes difficult to know exactly how much you’re spending on a bank credit card however prepaid cards will only let you spend the amount loaded on the card helping you stay within budget.
Helpful in times of emergency
Prepaid credit/debit cards are great asset to have for young people and gap year students travelling around.
Should they ran into an emergency or out of money whiles abroad, their parents can reload the card through the online facilities provided and the money becomes available in a matter of hours.