Parents of teenagers can give their children reloadable debit cards for their daily purchases. These will help them become responsible in spending since they can only shop within the limits of their reloadable debit cards. Moreso, parents who are constantly away because of work and business travels need not worry about their children’s allowances since the card can be reloaded anywhere at any time.

For NASCAR Visa reloadable debit cards, usual charges include a monthly service charge, withdrawals outside the reloadable debit card network and might also charge on the cards’ first purchase.

Reloadable Debit Cards: A Growing Segment

Reloadable debit cards and other prepaid debit cards with no fees represent one of the increasingly growing segments within the financial services in the United States. In fact by the year 2017, it is expected to be recorded beyond $440 billion in total brand amount. Last 2009, Federal Reserve Bank in Boston commissioned an independent research which shows that around one-third of consumers worldwide owns a prepaid card. Moreso, the federal government has subscribe to this financial service by providing tax payers belonging to the low income group with reloadable debit cards that will be used for direct deposit of their respective tax refund. A total of 600,000 people received this debit card.

In a survey conducted among prepaid card holders, majority answered that they are able to provide their dependents with financial independence through reloadable debit cards and other prepaid cards. A sister of a mentally challenged woman said that she shared her sister a Green Dot prepaid card which allows her to monitor the purchases of her sister easily through online checking of balance. She then makes a periodic reloading on her sister’s account. The card makes her sister spend responsibly within a budget that freed her from constant overdrafts when her sister is still using a checking account.

A number of concerns had been raised regarding the use of the reloadable debit cards and other prepaid cards. Some users and lawmakers points out that the users lacks certain protection in using the cards by having been charge with different fees that consequently erodes the balance of the user. Some prepaid card companies charges activation fees, monthly service charge fees, and other fees that are not informed to users upon application and activation of the card. With this, lawmakers intend to pass a law that will detail the protection of all prepaid card users.

Reloadable Debit Cards: Great For Teens

While they may be a number of concerns regarding the use of reloadable debit cards and other prepaid cards, it is however recommended to most young adults who have tendencies on overspending to become responsible in their daily purchases. More so, these reloadable debit cards and prepaid cards is considerably less expensive and convenient to use especially for 17 million Americans who do not have a bank account. While this is a growing industry in the United States and other parts of the world, the competition of Financial Institution had brought the fees down on activation and monthly charges.

With the growing popularity of reloadable debit cards as well as prepaid cards, it helped parents and people to support their dependents regardless of distance.

Reloadable debit card is a dual purpose plastic for usage on ATMs and on Point of Sale terminals at merchant locations. The prime purpose of the card is to provide a secure and convenient alternate to carry cash without encumbering the consumer. The main theme of the card is to pay now, buy later.

Target Market

Target market of the prepaid card is students, non-banked consumers, travelers, unable or unwilling to use traditional banking channels such as retail bank.

Key Features

These cards are nameless cards and carry the program identifier on their face instead of the cardholders’ names. At the back end there is an account linked to each card.

Prepaid cards are some sort of demand liability/deposit accounts in which cheque book is not required for transactions. It has instant issuance, with simple processing, saving time for the customers as compare to a deposit account opening procedure at a bank. A Reloadable debit card works on the lines of the concept of prepaid mobile phone and internet cards where the customer acquires/loads a desired amount of the card from readily accessible locations and uses it till expires or is depleted.

Reloadable prepaid debit cards, if VISA enabled, will be used internationally. This extra feature will attract high net worth clients and will facilitate them while traveling abroad.

This kind of card gives ease to the cardholders for cash withdrawals from ATM, funds transfer to/from a checking account, balance transfer to other prepaid card and bill payments. Customers can also shop online at the websites after registering for online shopping through these cards. Reloadable card can also be sold to the employees of corporate entities for salary disbursement and business expenses management. Debit card must have an expiry date on it. Customer will be informed for all transactions via sms on their registered mobile number. Customer can view his statement online and get print out of its e-statement.

Customer Due Diligence

This Reloadable card should comply with the Customer Due Diligence required under Prudential Regulations issued by the central bank and Anti Money Laundering rules and regulations issued by financial Action Task Force (FATF). National Identity card should be verified from the identity card issuing authorities. Card should only be activated upon positive verification of the identity card.

 

Restrictions

This kind of cards should not be issued to Blinds and illiterate people. Moreover, limitations are also placed on the spending and withdrawal transactions as well as on balance in the card.

Death Of The Card Holder

In the case of death of the card holder, remaining balance will be transferred to the legal heirs upon completion of legal formalities applicable as per law of the land.

Lost Cards

Customer can block his lost/stolen card immediately by contacting tele-Customer services representatives at the contact center.

Card Fees And Charges

There will be card issuance fee, re-loading charges, international usage charges etc. In case of lost/stolen cards, duplicate card issuance fee will be charged. All applicable taxes, duties and levies will be recovered as per laws in force.

Tags: accessible locations, Anti Money Laundering, Automated teller machine, business expenses, cash withdrawals, corporate entities, credit card, debit card, due diligence, high net worth clients, internet cards, market target, MasterCard, merchant locations, Point of sale, prepaid card, prepaid cards, prepaid debit cards, prepaid mobile phone, prime purpose, reloadable debit card, reloadable prepaid debit cards, Stored-value card, target market

Batool Shamim is an experienced journalist.

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