In all financial institutions, the bank card is an offer that interests many individuals. Among them: prepaid cards. This means of payment is often confused with the classic bank card. While there are many similarities, there are also some differences. What are the real characteristics of these cards? How to use it and where to get it? Here is everything you need to know about the prepaid bank card!
The prepaid card is a payment card. It is used like a classic bank card, with a few differences. Indeed, the prepaid card (which can be a VISA or a Mastercard) allows you to pay for your purchases and withdraw money from the amount of money available, with a deposit limit and a maximum balance. Please note, this is not a credit card!
Unlike traditional payment solutions, the prepaid card is not linked to a bank account. You just need to have an e-money account to use it. On all prepaid cards issued in European countries, the inscription “Prepaid” is visible, which will allow you to distinguish it from other types of cards. Their validity is generally 2 to 3 years.
Concretely, how does the prepaid card work? Above all, you must buy a rechargeable card from the financial institution of your choice (neo-bank, traditional bank or commercial brand). After activation, you can start provisioning it:
It can be used until the balance is exhausted. Of course, you can always recharge it depending on the conditions of use. By opting for this alternative, you do not need to link to a bank account. You can make payments or withdraw money in France and abroad. Its use, in general, is the same as a conventional bank card.
To better meet the needs of individuals, professionals or companies, the prepaid card is available in two main categories: the anonymous card and the name card.
This type of card is reloadable. It can be purchased from tobacconists or local shops. Being anonymous, the user remains entirely anonymous during all the transactions carried out (whether for a purchase or a payment). Anonymous prepaid cards are therefore distributed without a bank account. In general, it can be a Visa card or a MasterCard card. However, to fight against money laundering and to strengthen the traceability of credit card transactions, it is imperative to provide proof of identity and proof of address. In the event that you cannot provide any, the monthly ceiling is limited to 250 euros.
To obtain a nominative prepaid card, you must go through a traditional banking institution. Indeed, this card is registered in the name of the user. In this case, it is mandatory to link it to a physical bank account. You must therefore provide certain documents, including proof of residence or an identity document.
In addition to choosing between a nominative prepaid card or an anonymous prepaid card, you must also identify the type of card that suits you best. Depending on your expectations and the use you want to make of them, prepaid cards are divided into three types:
As you will have understood from its name, the reusable prepaid card is a card that you can recharge as many times as you wish. Once the background is reloaded, you can therefore use it as you wish.
Once used, the disposable prepaid card is discarded. Once the card is empty, it is immediately destroyed.
The virtual card came with the evolution of online banking and fintech. Being virtual, this card has no physical form. All payments are therefore made only online or with contactless technology.
Have you opted for a prepaid bank card? It is important to clarify that there are certain costs to pay, if you wish to make transactions with. Depending on the conditions of use and the type of prepaid card, here are the costs to be expected:
Before investing in a prepaid card, make sure you could use it easily. To do this, check that the places where you usually shop accept it. Here are some merchants who have the prepaid card as a payment method:
You cannot pay for your purchases by prepaid bank card? Here are some reasons that may explain this:
Previously, the prepaid bank card was a solution intended mainly for minor children and young adults. Accessible from the age of 12, it allows you to learn how to use a credit card, safely and legally. But over time, the prepaid bank card has succeeded in attracting more and more people. Today, it is therefore aimed at a wider audience. Whether you decide to turn to the nominative card or the anonymous card, there will always be an offer that meets your expectations.
Of course, minor children and young people are still attracted by this bank card. This way, parents can also keep an eye on expenses, without being afraid of overspending. The rechargeable card is also a good way to allow low-income earners and people with banking bans to carry out transactions freely. Indeed, you do not need to justify your income to be able to use a prepaid card. Likewise, foreigners can also choose a prepaid credit card as a payment solution. Remember, in fact, that it is not necessary to link it to a bank account.
Last but not least: users who are used to shopping on the internet. Similar to virtual bank cards, these cards allow you to shop online with peace of mind. However, it is important to understand that the prepaid card does not have the same characteristics as a traditional bank card or a bank account. Thus, institutions do not provide RIB or bank details to prepaid cards.
Given its characteristics, the prepaid card is increasingly becoming an advantageous solution for various user profiles. If you are still hesitating to buy it, here are the advantages it has:
This is one of the main advantages of the prepaid card. Indeed, whatever the type and the conditions of use, it is always easy to supply. In some cases, all you need is a few clicks:
You do not need to travel, as this procedure can be performed remotely (i.e. online) and immediately. After the transaction, you will receive a validation code by SMS or e-mail, to enable the top-up to be activated.
The prepaid bank card is, as you will have understood, a payment solution accessible to all! Whether you are a minor, a young employee or even with a banking ban, you can always request a prepaid bank card. You can also benefit from this alternative, even if you do not have a bank account. It is therefore a very popular option for many people. Its use does not require any demanding formality and any specific verification.
You can choose to remain anonymous during transactions with the prepaid bank card. It is therefore a solution that allows you to make more secure purchases, while keeping potential hackers away. However, this method of payment is accepted both on the internet and in physical stores.
The prepaid card offers you the possibility of making payments within the limit of the amounts recharged. Therefore, it will be easier for you to control your expenses and funds. With a prepaid card at your disposal, you have no fear of overspending. Thus, the user can also adopt a healthier financial attitude.
Yes, the prepaid bank card also allows you to make withdrawals. Users can go to ATMs to get cash. The process is then the same as with a conventional bank card. It is also a very good way to save money.
If you are a mobile user, the traditional bank card is not a payment solution for you. If you are abroad, its use may indeed be blocked as a security measure. On the contrary, the prepaid bank card is a perfect option for you! In addition to being simple to acquire, it allows you to make purchases and withdrawals without major restrictions. The prepaid card is a practical and effective secondary card.
Even if the prepaid bank card is a very advantageous solution, it can also have some limits and disadvantages:
Understand that the costs of using your prepaid card may be a little higher than the costs of using a traditional bank card. Depending on the institution and options, you may pay additional fees for purchase, billing or even cancellation. Sometimes merchants also require an additional commission. Take the time to read the terms of use.
The prepaid card often has a transaction limit of 1,000 euros. In some situations, this ceiling can be a real obstacle. This is the case, for example, for people traveling. In addition, in some establishments (such as hotels or travel agencies) you can only pay with conventional bank cards.
By using a classic bank card, you can defer payment for your purchase for free. So you can, for example, choose to be debited at the end of the month. With a prepaid card, this is not possible. And for good reason, the money comes directly from your account.
Today, more and more establishments and suppliers are offering prepaid bank cards. The choice is so vast, you may not know where to turn. To help you in your choice, here is the list of the best prepaid bank cards in my opinion:
This Mastercard bank card is offered by a French neo-bank. Practical, simple and accessible to all, it very easily rises to the top 3 of the best prepaid bank cards. It is necessary to plan 20 euros per year to have the physical version.
This virtual Mastercard is also very interesting. To obtain it you must subscribe online. It is free, but its physical version is available at 10 euros. This prepaid card from the neo-German bank allows you to make transfers and receive them, thanks to the RIB N26 (which you will obtain free of charge upon subscription).
This prepaid bank card is free. To have it, you must subscribe from the application of the British neo-bank. Thanks to it, you can easily make payments and withdrawals around the world as well as on online sales sites.