What is a prepaid card? - Finance

Prepaid cards, also called reloadable cards, can be very useful as a substitute to cash. However, before you shop for a prepaid card, you should make sure to take some precautions and do some research, like considering different providers, their fees, benefits and regulations. Some companies, for example, provide fraud and loss protections.<br><br>Once you have chosen a company and received your prepaid card, make sure you record all the information written on it, like the card number, customer service number, expiration date etc. You can make a photocopy of the front and back and keep it in a safe place together with the card's accompanying sleeve or packaging. In case of loss it will be much easier to report it to the authorities and the card provider if you have all the right data.<br><br>At this point you can easily and comfortably use your card, but make sure to always keep track of your balance (most cards allow you to check your balance by phone, text or online). Only this way you will be able to avoid overdraft and prevent/report unauthorized purchases.