Prepaid credit card: when is a prepaid credit card worthwhile?

Prepaid Credit Card

Prepaid, the credit card for backpackers. Prepaid card based on Bitcoin. Do prepaid cards make sense for minors? Current news on the subject can be found in our news.

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Are prepaid credit cards accepted as normal credit cards? Are prepaid cards safe? What do they cost? Answers to your questions can be found on our guide page.

Prepaid credit cards at a glance

The prepaid credit card is a prepaid, rechargeable, prepaid card. The principle is: first charge, then pay. Then it can be used like any other credit card to withdraw money or withdraw money, the sales are deducted from the credit account on the card. A credit line is not available.

Prepaid cards are accepted as normal credit cards

They are characterized by the fact that they receive them without a credit check – thus without data inquiry with the Schufa. This means that even consumers with a negative Schufa entry can apply for a prepaid credit card. Even minors can enjoy a prepaid card, if the parents agree. Most providers offer the prepaid card from the age of twelve.

The prepaid cards are accepted in the same way as other credit cards, but only at such credit card acceptance points that are connected online and thus recognize credit cards without embossing. Most Prepai cards are not stamped and carry the note “Electronic use only”. However, cards are now also offered with embossing – such as the Viabuy Prepaid Mastercard or the Payback Visa card.

High security of prepaid credit cards

The prepaid card has proven to be extremely practical on vacation or when shopping online, whenever there is a risk of misuse or theft of the card. Restrictions can only exist for car rentals and hotel bookings. For car rental companies, because there is no credit line and for hotel bookings, if the hotels still use so-called imprinters, for which the cards must be embossed.

To recharge the prepaid credit card, you can choose between different options: cash deposit, transfer from any checking account, credit card transfer or other transfer systems such as Paypal, Giropay, Skrill or Cash-Ticket. Not every variant is free. Consumers should in any case inform themselves in advance about the costs.

Credit cards with seizure protection

For the holder of a prepaid card with financial problems, the seizure of the pre-paid on the credit card account credit can be a problem. Meanwhile, there are also offers for credit cards with seizure protection. In this case, the account holder remains a monthly allowance even in the case of ongoing attachment, which can not be impounded. However, the annual basic fee is usually slightly higher than for cards without garnishment.

Virtual prepaid credit cards

Some prepaid credit cards exist only as virtual credit cards or the user can choose between a virtual variant or the plastic card. The virtual credit cards are usually cheaper than the plastic cards. In addition, there is no theft risk. However, you can use such credit cards only for Internet purchases, cash withdrawals or payment in shops are not possible. For example, virtual credit cards are offered by Netbank or Wirecard Bank.

Prepaid cards and their costs

As with traditional credit cards, prepaid cards incur costs such as annual fees, cash withdrawals at the machine and commissions for use outside the eurozone countries. You may also be charged a credit card charge, a one time activation fee, or a credit card issuance. On the positive side, the credit on some cards earns interest. There are also considerable differences in the prepaid cards.

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Christina Cherry
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