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.