A debit card is a special kind of card that you can use to buy goods and services. A debit card links directly to your account. It means that as you spend on your favorite products and services, your account goes negative. When you want to load your account, you can visit any bank’s branch or deposit online. There are also prepaid debit cards with mobile check deposits. Such cards are easy to use.
A debit card resembles a credit card. However, unlike credit cards, a debit card allows you to use what is in your account. If it gets exhausted, then you have to recharge your account with more money. Otherwise, the card may just become useless. A credit card allows you to use the money to pay for goods and services and pay the spend amount of money later. However, a credit card has a limit.
As long as your bank allows you to borrow money and pay later, there is a limit you cannot go beyond. A credit limit depends on your credit records. If you pay your debts early enough, you become eligible for higher credits. People with poor records have a very little credit limit. Let us leave credit cards and focus on debit cards. Almost all banks have the best reloadable prepaid cards with no fees.
How do Debit Cards Work?
The working mechanism of a debit card may appear complicated to you, but in the real sense, it is not that complex. For instance, when you want to pay for an item, whether online or at physical shops, the merchant sends data to the acquiring bank, which then transmits data to the card-issuing bank.
When the issuing bank receives the information, it either approves or declines the transaction. The ‘accept’ or ‘reject’ message reaches the merchant who then sends the data to the issuing bank that, in turn, communicates with the acquiring bank.
All these communications happen across the service provider of the debit card. Lastly, the service provider will facilitate the transfer of funds from the issuing bank to the merchant’s acquiring bank.
Apart from buying goods and services, you can use a debit card to recharge prepaid cards or to purchase gift cards. These could be reloadable gift cards with no fees or one-time gift cards.
How are Debit Cards Different from Credit Cards?
In appearance, a debit card appears similar to a credit card. Even the service providers are the same. Other visible features such as the magnetic strip, card number, account number, and the holder’s name appear similarly placed. So it can be challenging to distinguish between the two by just looking at them.
The difference between the two cards comes in the way you can spend money using them. You can indeed use either debit or credit cards to pay for goods and services. However, in the case of a debit card, you can only spend what is in your account.
In short, your account is directly connected to your bank account. If it gets exhausted, you only need to deposit more money. You can also use another card to send money to your debit card. If you have a prepaid card, you can transfer funds to your account using an online checking account.
But what if I do not know how to transfer money from my prepaid card to a debit card? If that is the case, you can then get customer care assistance on how you can send money from your prepaid card account to your debit card account.
How do I send Money using a Debit Card?
For you to send money using your debit card, you need to create an online checking account. However, you can as well use an ATM to transfer money to linked accounts.
When sending money using an online checking account, you need the account number of the recipient. If the recipient is of a different bank, you need both the account number and the routing number of his or her bank. You also need to know how to transfer money using a routing number to make a successful money transfer.
So now, upon logging in your checking account, you navigate to the tab about ‘send money,’ then you enter the recipient account number and routing number where necessary. Next, you indicate the amount to pay before inputting your PIN. If you are using other payment methods such as PayPal or Payoneer, you need to input the amount of money to send, the card number and PIN.
How do I add Money to My Debit Card?
As I mentioned above, a debit card links directly to your bank account. The moment you deposit money in your bank account, the money becomes automatically available in the debit card for use. That is why when you buy something or send money using the debit card, your account balance reduces.
Moreover, you can also load your debit card using online platforms such as PayPal, Skrill, or even World Remit to send money to your debit account. There are charges involved in the transfer process.
Alternatively, you can load your debit card by having someone send money to your bank account. In that case, the sender will need your account number. Again, as I said earlier, you can also transfer money from your prepaid card to your debit card if at all you have one.
Is a Debit Card Safe to Use?
Using a debit card is safe because you do not need to carry cash. Cash can get stolen or misplaced. With the card, you only need to avail it to a card reader machine when paying for goods and services and enter your PIN to authorize any deductions.
Nowadays, even when you lose your card, no one can use it to withdraw money from your account because of the chip technology that ensures that your payment is safe. However, when you misplace your card, you should have it disabled before getting a new one.
The most important point to note is to keep your PIN a secret. If anybody gets your PIN, they may steal your card and go to withdraw your money. That can be very dangerous. Such incidents have occurred severally. Maybe in the future, ATMs will come with biometric identification systems to minimize thefts.
What Are the 7 Best Prepaid Debit Cards with Mobile Check Deposit?
There are various kinds of prepaid debit cards that allow mobile check deposit. They include the following.
1) NetSpend Prepaid
The card is lovely to own, as it has no activation fees. You just apply and have it activated for free. What you do is only loading money into your account and start enjoying using the card services. It is best for direct deposits. Moreover, there is no minimum balance. You can have whatever you can afford as your balance.
Interestingly, there is no credit check before getting the card. The reason behind this is that this is not a credit card. The bank knows that you can only spend what is in your account and so there is no need fora good credit at all.
To register, you only need to use the NetSpend website and provide the necessary details. These include your full name, email address, and physical address, among others. You will have the chance to choose the appearance of your card.
2) Starbucks Rewards Visa Prepaid Card
The card is popular due to its stars, which you get upon using the card to pay for goods and services. Also, the card issuer does not charge monthly fees. Moreover, there are no annual fees. That is why the card usage is sweet.
Interestingly, reloading the card is free. No one will deduct any amount of money when you reload your card at all. Again, you will be able to earn 150 bonus stars when you use the card to add money to your Starbucks account for the first time. The bonus takes about 6-8 weeks to appear on your account.
You can redeem your stars to pay for goods and services. You can earn one Starbuck for every $10. The more you buy using the card, the more you get stars. The stars do not expire. During application, you have to read terms and conditions. To apply Click here.
3) Bluebird by American Express
With this card, there are no monthly fees. So you can be sure that you will not incur a lot of charges on the card. Moreover, the issuing company will give you a free ATM network. Anytime you want to withdraw money, you will just do it for no extra cost. However, when you use other ATMs, you will get charged $2.50. Any other ATM operator fee may also apply.
In addition to the above, the card gives you great budgeting features. In finance, budgeting is essential as it helps you to manage your money appropriately. Lack of proper budgeting can make you misuse money.
While recharging the card, you can use debit card transfer, direct deposit, card-to-card transfer, mobile check deposit, or do cash load at Walmart or other stores near you. Get the details here.
4) Movo Virtual Prepaid Visa Card
With Movo Virtual Prepaid Visa Card, forget about the monthly fees. Unlike other card issuers who may charge you every month to maintain the card, Movo allows you to use the card for free. However, there is a $4.95 inactivity fee if you go for more than three months without using the card.
When you want to withdraw money using the card, you can access over 6000 ATMs across the nation. If you withdraw cash from other ATMs, the company might charge you $2. But why use other ATMs if you have free ATMs around you?
You can recharge the card using a crypto facilitated method or just use bank account transfer, direct deposit, withdrawal from PayPal balance, or by use a mobile check deposit. Lastly, get this card and begin paying bills for free. To get more information about this card, visit here.
You can open multiple sub-accounts for kids using FamZoo. It shows the company is serious in ensuring a prosperous family in terms of finance. Again, enjoy a free ATM network across the nation. No one will ever charge you for using their systems. Unlike other cards, FamZoo costs you $2.50-$5.99 as a monthly fee.
Despite the monthly charges, there are no costs for activation of the card at the time of application. If you stay for long without using the card, there is no inactivity fee charged on your account. Moreover, there is no credit check required whatsoever.
ATM withdrawals are free within the FamZoo network. If you use other ATMs, some charges apply. Other exciting features include instant locking of cards as well as instantaneous transfer between cards. See more details here.
6) Wells Fargo EasyPay Prepaid Card
Having the card is very advantageous because it has over 13,000 ATMs and about 5,500 branches in around 36 states. It means that their services are readily available across many countries. When applying for this card, you are sure that you will have comfortable spending of your money.
Despite the many advantages, the card issuer requires you to pay a $5 monthly fee. However, there are no costs to activate the card upon applying for it. Moreover, there are no inactivity fees. There are no account closure fees either.
Another advantage of the card is that there is no minimum credit score needed. However, the issuer may decide to contact a “soft” credit inquiry. Learn more here.
7) Akimbo Prepaid MasterCard
With this card, you can get five other cards that link to this account. Moreover, Akimbo does not charge any monthly fee. However, there is a fee they charge on the first five purchases.
Withdrawing using Akimbo attracts certain charges. It is because Akimbo does not have ATMs. Again, be ready to part with a $5.95 fee if the card remains inactive for a year. So you should always ensure that your card is active all the time. Despite that, there is no credit history required. So whether you have a terrible record or no credit history at all, you should not worry.
To recharge the card, you can do direct deposit, bank transfer, mobile check deposit, or card-to-card transfer. Any method can do depending on your personal preference. To learn more, click here.
Debit cards are secure ways of carrying your money. It is not the same as carrying real cash. Again, using a debit card ensures that you spend what is in your account, thus avoiding debts. Debit cards with no monthly charges are the best since you do not incur a lot of costs. Your card issuer should not force you to have a minimum balance. So you should get a card which does not require you to have a minimum balance.