Prepaid Card Offers More than Just Plastic
| June 28, 2010 |
When you think about reloadable prepaid debit cards, what is your first thought? For many, it is probably just a card that someone can get for making payments when they really don’t want to use their credit card or bank issued debit card. While this is partly true, prepaid cards have grown into something much more within the United States. For many consumers, prepaid has become a way of life which in turn have made companies re-evaluate their focus on those using this type of plastic. While in the past prepaid cards were just simply plastic with not much issuer interaction, things have changed and one company that seems to be leading the way is known as Mango Financial.
Unlike many prepaid card issuers, Mango Financial has decided to give consumers more than just plastic. Instead they are giving cardholders the ability to have a traditional banking experience without a commitment. To do this they have introduced actual brick and mortar locations where no bank account is needed to cash checks (load onto a debit card) for far less than it would cost at other places. Not only that, they also give those that enter the stores the ability to speak with someone or simply cash their checks on their own by using a kiosk. An actual overview of everything that can be done can be found within an article entitled "The Mango Store Lets You Bank Without Commitment".
Over the years prepaid cards have evolved tremendously and those considered as "unbanked" and "underbanked" have become one of the primary focuses of the industry. When it comes to those that are unhappy with their current bank or card issuer, prepaid cards are hoping to make the case that they offer a better, cheaper option. When cards are advertised many times you will see the benefits highlighted as being without this such as overdraft charges, which have become major news as of late. Instead they can simply pay a lower monthly fee (some void if certain amount is spent per month) that is said to save more money in the long run.
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Over here in the UK, prepaid cards have beome very popular over the past year. While some are aimed at the ‘underbanked’ another kind of prepaid card is aimed at travellers.
Travel prepaid cards offer a much safer alternative to cash while travelling abroad because if lost or stolen they can be replaced and will still hold the same amount of funds. Plus, they can be used wherever standard credit or debit cards are accepted.
A large proportion of travel prepaid cards are offered by currency exchange companies which offer better exchange rates on their prepaid cards than you would usually get so they work out to be better that way too.
Do you have this type of prepaid card in the US?
Comment by Emma S in UK — June 30, 2010 @ 6:00 am
Hello Emma,
Like the UK we do have prepaid cards that are also focused on travel, but I don’t believe we have as many. While there are a few, most prepaid card issuers in the US are focused on those looking for a payment alternative to a traditional credit card. Over the last couple of years many have put a major focus on the underbanked or un-banked as this market has increased year after year.
As stated in your comment, travel prepaid cards do offer much more protection than standard prepaid cards. One of the most well known travel cards (in my opinion) in the U.S. is the Travelex Card, which I am sure you are very familiar with. Just by looking at the benefits it is easy to see why this card and other like it make a better option with traveling abroad.
Thanks for your comment and I hope your question was answered.
CCG
Comment by Credit Card Guide — June 30, 2010 @ 3:00 pm