Debit Cards
Click on Card to Apply
Bad Credit Debit Card with Checking Account
By [http://ezinearticles.com/?expert=Roger_Passman]Roger Passman
Debit cards are issued by banks and, in most cases, look and spend exactly like a credit card. The only difference is that the debit card does not advance you any credit. In fact, using a debit card is much like writing a check without the paper. Any amount you spend is deducted directly from your checking account virtually immediately, depending on how the transaction is actually processed. There is no bill to pay at the end of the month, no accumulating interest charges and no membership fees.
If you do not have the funds to cover the transaction the debit card will return a denied transaction. Banks often place a limit on the size of any single transaction that may be processed in any given day ranging from $500 to $2,000. If you know you will be using your debit card in excess of your limit you must get a pre-authorization from your bank that normally lasts for 24 hours only. Some banks charge a fee for debit transactions but not for charge transactions.
There are several products on the market and they go by several different names. While the most common remains the debit card, your bank might issue a Check Card or an Express Card but the different names are no more than a marketing tool to distinguish one bank's product from another. Additionally, there are several different types of debit cards on the market. Your bank may offer one or more of the following options to you:
A Direct Debit Card
requires a personal identification number or PIN in order to work. You may use the card at a terminal or Automated Teller Machine (ATM) to draw cash.
A Deferred Debit Card
combines the basic debit card with a card that looks and acts just like a credit card. When you use the card in an ATM you still must use a PIN to secure cash. If you use the card as a debit card for a store transaction you will also require the use of a PIN to complete the transaction. But if you use the card as a credit card your signature alone is enough to complete the transaction.
Using debit cards to regain control of your financial future is a convenient way to impose a self-discipline on your spending. The beauty of the debit card is that you may only spend what you have. The debit card allows you to make no claim on future dollars, rather, it limits you to spending what is currently in your checking account. Impulse buying is curbed. As you work to learn the discipline of budgeting and spending, the debit card places important restraints on your ability to overspend. Debit cards offer you the convenience of credit cards but on a pay-as-you-go basis. You always know where you stand and you have no outrageous finance charges that eat into your ability to pay down your debt. Debit cards also provide users with the added convenience of not having to carry extra cash or a checkbook around. The debit card is an adequate substitute for both with the added benefit that the card is protected by a PIN. If lost or stolen, the debit card is harder to use than a checkbook and, unlike cash, is not gone forever.
Debit cards, unfortunately, have a few disadvantages that you should be aware of. For one thing, if you don't faithfully record your transactions you can easily cause your bank balance to plunge out of control. For the most part, this disadvantage is countered by the ability to access your account balance 24/7 on the internet. You should also request your balance any time you withdraw funds from an ATM. While no interest is charged, often there are heavy use fees associated with a debit card. If, for example, you use a foreign ATM (one not owned by your bank) the bank that owns the ATM may charge a fee of up to $3.00. Often your own bank charges a fee for ATM withdrawals from a foreign ATM as well that match the fee charged by the ATM owner. You could pay up to $6.00 to withdraw a minimum of, say, $20.00. That is a high price to pay for having access to your own funds. You may avoid all fees by only using an ATM owned by your own bank.
Finally, the bank debit card provides no help with credit repair. If you have had credit problems in the past and you are working to rebuild your credit through the responsible use of credit, only the responsible use of a credit card will help. Because the bank issuing the debit card is not issuing credit they do not report transactions to the credit bureaus. There are other solutions that act much like a debit card, for example, a secured credit card, that will help with credit repair. The point is, if you have had credit problems, please do not be misled by the claims of getting a debit card to rebuild your credit.
Copyright © 2007 Roger Passman All Rights Reserved
Roger Passman is the President of WDC Financial Services, Inc. His firm works with clients to restore damaged credit, negotiate payment plans, and reduce debt. You can visit WDC Financial Services at [http://www.wdcfinancialservices.com]
If you are looking for a credit card to rebuild your credit visit [http://www.wdcgetcredit.com] for up to date offers of cards that are designed to help repair damaged credit.
Article Source: [http://EzineArticles.com/?Using-Debit-Cards-to-Develop-Spending-Self-Discipline&id=744128] Using Debit Cards to Develop Spending Self-Discipline
Prepaid Visa and MasterCard Debit Cards (aka "Prepaid Credit Cards")
By G Garcia
Nowadays there are many options to carrying cash, and the one choice that is gaining popularity is the Prepaid Debit Card, also known as the Prepaid Credit Card. Although these debit cards are being advertised on television, radio and the internet, their use and purpose is clouded in mystery. We will explain what they are and how to use the prepaid debit card.
Terms to Know
o Branding - Adding Visa or MasterCard logo to a debit card, thereby backing the debit card with the benefits and security of these credit card companies.
o Debit - Deducting from an existing balance.
o Load - Adding money to the balance of the card.
o Reload - Ability to add more money to the balance once the original 'loaded' balance has been depleted.
"Prepaid Credit Card" - Debunking the Myth
First, we will clear up the most common misconception with these cards. They are not credit cards in the traditional sense. A "traditional" credit card is a card that draws off a credit line balance with each use/purchase. A prepaid debit card is a card with either a Visa or MasterCard logo and can be used to pay for goods or services anywhere Visa or MasterCard is accepted, however all purchases are drawn from a prepaid balance that you have loaded onto the card. Once the balance has reached $0, you are no longer able to use the card for purchasing until the balance is reloaded.
Evolution of an Industry
In the beginning, in terms of banking, there was an Automated Teller Machine debit card. This type of card allowed the holder to access their bank account balance without having to physically go into the bank. The ATM card holder was able to go to a new type of cash access point (the Automated Teller Machine) usually located outside their bank and get cash out, debiting from the available cash balance of their bank account. As this new type of bank account debiting system evolved, merchants and banks teamed up to allow ATM card holders to access their bank accounts at various locations, such as a grocery store or other kiosk ATM machines located around town.
Through gradual progression of the financial industry, Visa and MasterCard got involved and joined the efforts of banks and merchants to brand the ATM card with either the Visa or MasterCard logo. These new Visa or MasterCard branded ATM debit cards now had the ability to be used to pay for goods and services anywhere a Visa or MasterCard credit card was accepted, while still drawing off the bank account balance the ATM card is associated with.
The next step for Visa and MasterCard was to create standalone "Gift Cards", which were originally loaded with a prepaid balance and could be used just as a Visa or MasterCard, but purchases were debited from the actual prepaid balance, and required no bank account. These Gift Cards could not have their balance reloaded.
This brings us current to today's financial landscape, where Visa and MasterCard have introduced prepaid debit cards, which operate like a hybrid ATM card (minus the bank account) and Gift Card (but the balance can be re-added to). The card holder can load money onto the debit card, can access the balance anywhere that Visa and MasterCard is accepted, and can reload money onto the card balance.
The Visa or MasterCard Prepaid Debit Card
Now that you have a good idea of what a prepaid debit card is (and what it isn't), it's time to find out what the benefits are of having this new type of debit card.
Features and Benefits
o No Credit Check - A credit check is required when you apply for credit, since you are going to be trusted to pay the debt back. Since you are adding cash onto the card, and since the balance cannot go into the negative, you are not going to be in a situation where you are required to pay anything back, or owe any money from exceeding the balance.
o Safety and Security - Carrying cash nowadays is a risky venture. If you lose cash, you are out that amount of money and cannot conceivably recover the amount. Since you can load or reload the balance of a prepaid card with cash (almost anywhere), and since the cash balance on the card is branded by either the Visa or MasterCard logo, the same security and fraud protection is extended to the prepaid balance. If the card is lost or stolen, the prepaid card holder is not held liable for any fraudulent transactions. Your money is safe and secure.
o Bank Account Features - Most prepaid debit cards have bank account features, such as check writing privileges (the amount of the check is deducted from the card balance). You can also have your employer (although employment is not required to apply for card) directly deposit your payroll check onto the card balance. Since these are very attractive incentives, most prepaid debit cards have these features.
o Reload the Balance Anywhere - Most prepaid debit cards allow you to reload the balance almost anywhere. You can load via PayPal, at most bank branches, any Western Union or MoneyGram location and even by cashiers check or money order.
o Shopping on the Internet - Nowadays, you can't be too safe when shopping online. Prepaid debit cards are a great choice in this situation because you can determine how much to load onto the card and since the balance cannot go into the negative, the chances of someone accessing your card information and running up a horrendous debt are non-existent.
o Other Benefits and Features - Since prepaid debit cards are branded with either the Visa or MasterCard logs, the prepaid cards have the same perks of regular credit cards. Some of these perks include roadside assistance, auto rental insurance, extensions on original manufacturer warranties, automatic bill pay and even merchandise rewards and cash rebates.
The Bottom Line
The best way to carry cash nowadays is a prepaid debit card. It's also a great way to give a gift or pay kids an allowance. As a gift, the prepaid card is an excellent choice because the prepaid card is accepted anywhere, and doesn't limit the recipient to one particular store or service. As a child's allowance tool its ideal, since the transactions on a prepaid debit card can be tracked and accounted for, down to the last penny. As an online shopping resource, it's handy because the card balance cannot be exploited. As a straight cash card, it can be used anywhere and just as safe as a credit card.
Good luck and remember to read all the facts and find out all the information before making important financial decisions.
This article was written by Gus Garcia, owner of [http://www.creditcardchoices.com/index.pl?a=compare-credit-cards][http://www.creditcardChoices.com], a free online service offering information about various credit and debit card offers as well as links to credit and debit card applications.Click here to see all prepaid debit cards [http://www.creditcardchoices.com/index.pl?a=compare-debit-cards] available at creditcardChoices.com.
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Using Debit Cards to Develop Spending Self-Discipline
By Roger Passman
Debit cards are issued by banks and, in most cases, look and spend exactly like a credit card. The only difference is that the debit card does not advance you any credit. In fact, using a debit card is much like writing a check without the paper. Any amount you spend is deducted directly from your checking account virtually immediately, depending on how the transaction is actually processed. There is no bill to pay at the end of the month, no accumulating interest charges and no membership fees.
If you do not have the funds to cover the transaction the debit card will return a denied transaction. Banks often place a limit on the size of any single transaction that may be processed in any given day ranging from $500 to $2,000. If you know you will be using your debit card in excess of your limit you must get a pre-authorization from your bank that normally lasts for 24 hours only. Some banks charge a fee for debit transactions but not for charge transactions.
There are several products on the market and they go by several different names. While the most common remains the debit card, your bank might issue a Check Card or an Express Card but the different names are no more than a marketing tool to distinguish one bank's product from another. Additionally, there are several different types of debit cards on the market. Your bank may offer one or more of the following options to you:
- A Direct Debit Card requires a personal identification number or PIN in order to work. You may use the card at a terminal or Automated Teller Machine (ATM) to draw cash.
- A Deferred Debit Card combines the basic debit card with a card that looks and acts just like a credit card. When you use the card in an ATM you still must use a PIN to secure cash. If you use the card as a debit card for a store transaction you will also require the use of a PIN to complete the transaction. But if you use the card as a credit card your signature alone is enough to complete the transaction.
Using debit cards to regain control of your financial future is a convenient way to impose a self-discipline on your spending. The beauty of the debit card is that you may only spend what you have. The debit card allows you to make no claim on future dollars, rather, it limits you to spending what is currently in your checking account. Impulse buying is curbed. As you work to learn the discipline of budgeting and spending, the debit card places important restraints on your ability to overspend. Debit cards offer you the convenience of credit cards but on a pay-as-you-go basis. You always know where you stand and you have no outrageous finance charges that eat into your ability to pay down your debt. Debit cards also provide users with the added convenience of not having to carry extra cash or a checkbook around. The debit card is an adequate substitute for both with the added benefit that the card is protected by a PIN. If lost or stolen, the debit card is harder to use than a checkbook and, unlike cash, is not gone forever.
Debit cards, unfortunately, have a few disadvantages that you should be aware of. For one thing, if you don't faithfully record your transactions you can easily cause your bank balance to plunge out of control. For the most part, this disadvantage is countered by the ability to access your account balance 24/7 on the internet. You should also request your balance any time you withdraw funds from an ATM. While no interest is charged, often there are heavy use fees associated with a debit card. If, for example, you use a foreign ATM (one not owned by your bank) the bank that owns the ATM may charge a fee of up to $3.00. Often your own bank charges a fee for ATM withdrawals from a foreign ATM as well that match the fee charged by the ATM owner. You could pay up to $6.00 to withdraw a minimum of, say, $20.00. That is a high price to pay for having access to your own funds. You may avoid all fees by only using an ATM owned by your own bank.
Finally, the bank debit card provides no help with credit repair. If you have had credit problems in the past and you are working to rebuild your credit through the responsible use of credit, only the responsible use of a credit card will help. Because the bank issuing the debit card is not issuing credit they do not report transactions to the credit bureaus. There are other solutions that act much like a debit card, for example, a secured credit card, that will help with credit repair. The point is, if you have had credit problems, please do not be misled by the claims of getting a debit card to rebuild your credit.
Copyright © 2007 Roger Passman All Rights Reserved
Roger Passman is the President of WDC Financial Services, Inc. His firm works with clients to restore damaged credit, negotiate payment plans, and reduce debt. You can visit WDC Financial Services at [http://www.wdcfinancialservices.com]
If you are looking for a credit card to rebuild your credit visit [http://www.wdcgetcredit.com] for up to date offers of cards that are designed to help repair damaged credit.
Article Source: https://EzineArticles.com/expert/Roger_Passman/116182
http://EzineArticles.com/?Using-Debit-Cards-to-Develop-Spending-Self-Discipline&id=744128
Future of Prepaid Debit Card Usage
By David Shapiro
As consumers grow in greater strength, and divert from credit cards to prepaid debit cards - drawn by expediency and lack of interest bills - banks are starting to offer a lot of debit card perks to protect bank shares. With the money they earn from the users of debit cards, the intensification of consumer relations can lead to many advantages for the business of banking. Let us see what the future prospects of debit might be. This article is an opinion piece.
Credit card institutions generally put together more cash off card dealings than the bank does with debit, which means that using a debit card service is less rewarding for the banks than utilizing the services rendered by credit cards.
To solve this problem, most of the banks offer you, as their customer, an annual fee to be able to afford various rewards that come with the card for your personal or business use. Here are some examples of debit card rewards that you can have.
Some banks have partnerships with various establishments that would bring a lot of discounts with their products, which can entice consumers to register for a card. Some banks offer cash rewards for every deposit that you make with your prepaid debit cards. Each deposit can earn you a point that would give you a chance to own various products from different establishments that are partnered with the bank.
Aside from this, there are other forms of pre-paid card services that you can have if you avail debit. This is why the future of card usage is bright because of the many perks that a customer can have once they get a debit card of their own.
Most common services are as follows:
Music
Fraud Protection
Airline Miles
Coffee
Many prepaid credit card and debit companies offer flyer miles for those who are regular users of the card. In addition to this, if you are a customer of debit companies, you will be offered protection against identity theft and fraud. Aside from this you can also get 1% discount on various downloads from iTunes as well as various coffee shops in the metro.
With all these perks, there is no reason why people would not be convinced to get debit card services to use for their own financial comfort. However, with the fast evolving world, it would be no surprise if debit and credit card companies think of new ways to make their costumers want to avail their services even more.
In today's modern world, debit is one of the many tools we can use to make our lives easier in terms of paying for the things that we want in our lives. This ensures the longevity of the debit card as well as credit card transactions for many years to come. This shows that the concept of debit indeed have a bright future. We can conclude that the future of debit transactions is truly a blessing for the people of the modern world.
Find prepaid debit card reviews at PrepaidDebitCards.net as well as additional prepaid debit and credit card insight articles by Mr. Shapiro.
Article Source: https://EzineArticles.com/expert/David_Shapiro/9396
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Differences Between Prepaid Debit Cards and Secured Credit Cards
By Tara Tiemann
Debit cards and credit cards are different from each other. This is a very important fact many consumers are unaware of. All that matters to them is that they have a credit card they can use to make purchases and pay bills.
However, such belief can lead to financial problems. For example, if an individual will not closely consider the differences between a prepaid debit card and a secured credit card, he will most likely choose a card program that is not suitable to his financial standing. And this can spell out bigger credit problems in the future, especially when he does not know how to manage his card account properly.
So, to avoid this scenario, we encourage our readers to identify the factors that distinguish one card program from the other. This way, you can choose the right plastic card that will work best to your advantage and that will help you avoid incurring large financial obligations.
Below are the differences between the two popular card programs - secured credit cards and prepaid debit cards.
Differences Between the Two Card Options
Below we have identified three criteria that will highlight the differences between a prepaid debit card and a secured credit card.
1. The purpose of the initial deposit - Secured credit cards and prepaid debit cards both require the submission of cash deposit. However, the purpose of such deposit varies from one card program to the other. For example, issuers of secured credit card programs oblige their applicants to provide a minimum deposit of $200. This amount will serve as collateral for the use of the card and as credit limit at the same time.
Meanwhile, the initial cash-out of debit cardholders will be directly deposited to their debit accounts. Since they will not be provided with credit lines, their initial deposit will serve as the available balance that they can use on their cards. When the funds run out, they can simply make new deposits on their card accounts. This way, they can continue using their respective prepaid debit cards.
2. Bearing of card transactions - Payments made on secured credit cards are usually reported to the three credit bureaus. This way, people with poor credit ratings can easily monitor the progress in their credit history.
While any transactions made using prepaid debit cards are not being reported to the three credit bureaus. This is because they do not have impact on the credit history of an individual. After all, the prepaid debit cardholder is actually using his own money.
3. Rates and Charges - Consumers with a secured credit card who submit late payments or even miss one will be required to pay additional fees and interest rates. Meanwhile, interest rates do not apply to prepaid debit card programs. This is because the charges are automatically deducted from the initial deposit provided by the debit cardholder. However, additional charges may still apply for every transaction made with the use of a prepaid debit card. Such charges will depend on the terms and conditions stipulated on the prepaid card program.
After this short discussion, we hope that you can now distinguish a prepaid debit card from a secured credit card. And we hope that you can now determine which of these card programs will be most suitable to your financial and personal situation.
Copyright (c) 2010 Tara Tiemann
Tara Tiemann is a credit analyst of Go-prepaid.com and has been a resource site for people who want to live debt free! If you're on a budget using prepaid debit card and prepaid cell phone services can save you big money!
Article Source: https://EzineArticles.com/expert/Tara_Tiemann/338489
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Bad Credit Debit Card
By Greg Ford
A debit card requires a savings account or a checking account to be established, much like a secured credit card. The bank then issues you a debit card. Most debit cards bear a Visa or MasterCard logo, and look and feel just like a credit card. In stores or online it can be used just like a credit card. For convenience of use, there may be no difference at all.
Most of us know that the way a traditional credit card operates is that your credit is reviewed and you are approved for a credit amount limit. You are then given the card and allowed to freely charge whatever you want and make monthly payments on it later.
If you happen to be a person with negative credit, getting approved for a credit card this will be very difficult.
Prepaid debit cards operate very differently. They are also known as prefunded cards, or reloadable cards. The difference is that a money account is directly attached to the debit card.
You established an account that you put money in to. It is usually held at a bank that is FDIC insured. Therefore your money is protected just like a regular bank account.
However, they are not like traditional bank account. It is very unlikely that the particular bank will be located anywhere near the same state and city that you live in. In addition you can not make routine withdrawals from the account.
Instead a debit card with either a Visa or MasterCard logo is issued to you with a limit that directly matches the amount you put in to that account. This is why they are called prepaid or prefunded debit cards.
They look just like regular credit cards. They can be used just like regular credit cards. The main difference is that each charge or purchase made is a direct deduction from the amount you had put in to the account. The balance that remaining in the account is also the limit that remains on the card. For example, if you sign up for the service and establish an account by funding it with $300. Then you will immediately be sent a debit a card with a $300 limit.
Then when you use the card to make a $50 purchase. Your account is equally deducted by $50 and there will be a $250 limit remaining on the card. Subsequently, if you make a payment of $25 then your account balance increases to $275. Now you can charge up to $275 on the debit card.
There are absolutely no credit checks and everybody is approved. Because of the way prepaid debit cards operate it compels them to be used more responsibly. There are no overdrafts or over the limit fees. If you attempt to charge something that exceeds the current account balance it will be the purchase will declined.
Because of these characteristics of prepaid debit cards they are a good option for people who know they have negative credit reports.
One differences that consumer advocates feel is very important to know is the level of fraud protection. Typically with traditional credit cards, if it is lost, or stolen, you are only responsible for the first $50 of fraudulent charges. However there is no such protection with debit cards. So it is extremely important that you contact them immediately to have the card cancelled and replaced when you discover it lost or stolen.
Here are a couple of additional pros and cons of using a debit card:
Pros:
* Easy approval process, no credit checks, a simple solution for people with bad credit
* Same acceptance as any Visa or MasterCard
* Get money from ATM machine
* Has a routing and account number which means you can easily set up direct deposit of your pay check
Cons:
* There is usually a one time fee to establish the account and activate the card
* Just like with credit cards there is usually a cash withdrawal fee when using a ATM
* Not the same fraud protection as with traditional credit cards
* Some prepaid debit cards do not report your payment history to the credit bureaus, so they don't help to repair credit
* Even though it seems like you are charging against your own money, the card company says it is a matching amount but not the same money. Therefore there is interest on your charges.
One thing to keep in mind is that the prepaid industry is growing and very competitive. So some of the companies are starting to offer more features that prepaid debit cards did not have before like the option of overdraft protection, a certain amount of free ATM withdrawals, fraud protection, etc. This check out the benefits that a particular card is offering.
In summary, a prepaid, or prefunded, or reloadable debit card allows you to only spend up to the amount you have pre-deposited into an established account. If you tend to overspend or would like to control your spending then a prepaid debit card could be a good solution. It will help you to better manage your money. They are also a great alternative for people with bad credit to get a Visa or MasterCard.
We hope this information has been a benefit and helps you decide whether, or not, a prepaid debit card would be a good option for you.
BadCreditAssistance.com helps people with poor credit find the financial services they need. For more information on prepaid debit cards, secure credit cards, and to submit an online application, Go Now To: www.badcreditassistance.com/credit-card-with-bad-credit
Article Source: https://EzineArticles.com/expert/Greg_Ford/5444
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