What does Prepaid Credit Cards mean?
A prepaid credit card is a type of card which needs a previously made deposit in order to be usable. Because it needs a deposit as collateral, it a secured type of credit card. These carry the well known logos such as Visa or MasterCard, and are most of the times universally accepted. Choosing the prepaid card is a good financial management measure, because you can’t spend more than you actually have, thus avoiding falling into debt.
Their area of usage is varied, among others you can use it for cash withdrawals at the ATMs as well as for electronic payments, employee wages and expenses and these can be re-loaded as needed. Some of the drawbacks, which one usually meets with regular credit cards use as well, is the ATM withdrawal fee (around $2), and the maintenance fee which varies accordingly to the type of card you own.