Using Your Prepaid Card for the First Time? Avoid These Common Mistakes!
Prepaid cards are the newest players in the plastic card world. Conventional plastic cards like credit and debit cards have been used for quite some time. However, even if they have only been around for a few years, prepaid cards have gotten quite the reception.
Undoubtedly, prepaid cards have truly come a long way and they are not showing any signs of slowing down. Since they share many surface similarities, many people mistake prepaid cards for debit or credit cards. While they look similar and share a few identical features, there are also many things that make them distinctly different.
One primary feature that sets prepaid cards from their counterparts is they are not tied to any checking or bank accounts. While using prepaid cards can be straightforward and easy, it is still important that you are aware of its ins and outs so you can use it to your full advantage.
However, knowing your prepaid card inside and out won’t suffice. It is also important that you know the common mistakes to avoid when using your prepaid card. Only when you know what mistakes to avoid will you be able to fully enjoy and appreciate all the great things the card can offer.
Below are some of the most common blunders you need to avoid when using your prepaid card:
Not being aware of the card’s limits.
The maximum amount you can load onto your prepaid card can vary from one provider to the next. Case in point: international prepaid cards have a much higher limit when it comes to load compared to local cards. Ideally, you need to be aware of your card’s maximum limit so you can use it more effectively.
It is also recommended that you do not load a huge amount of money on your prepaid card as you might not be able to access the money right away in the event that the card gets misplaced, lost, or stolen. It is also crucial to remember that since they are not linked to banks, you won’t be able to process any transfers right away.
It is recommended that you determine the amount you will load onto the card based on your spending habits and purpose. This is one of the surefire ways to ensure your money stays secure and you can fully enjoy all the benefits the card has to offer.
Not taking note of the fine prints.
Not reading the fine prints is something many people are guilty of. While unfortunate, many people don’t and won’t bother reading the fine prints before using anything and this includes their prepaid cards. However, when using your prepaid card, reading the fine print is truly important.
Keep in mind that all the information you need to use the card wisely and properly are indicated in the fine prints. This includes the charges, fees, and other things that you can and can’t do using your prepaid card. As a general rule of thumb, you also need to read the fine print to know what you need to do.
Not picking a password and PIN carefully.
When using your prepaid card for withdrawals, you need to enter a PIN to carry out any transactions. When creating a PIN, it is recommended that you create something that’s unique to ensure nobody would be able to access your money except you. It is recommended that you pick a distinct combination that’s easy for you to remember.
As an added precaution, it is ideal that you do not write down your PIN or disclose it to other people, even your family or close friends. Create a combination that’s not easy for others to guess so this means you should not pick your date of birth. Come up with something you can easily recall but hard for others to guess.