What is a prepaid card - Easybanking.com.lb
What is a prepaid card?

Prepaid cards are quick to obtain, easy to use, and safer than carrying cash. They are more flexible than gift certificates. Prepaid cards function as ordinary debit cards, either for ATM withdrawals or for purchase transactions at any place around the world that accepts Visa or Master cards.

Other type of cards

Internet cards were introduced to facilitate buying goods on the Internet while minimizing the risk of credit card fraud. Banks set a monthly ceiling - around $500 - although it can be made less or higher upon the request of the client.

A credit card enables a customer to buy something with money that is borrowed from the bank, and which he can repay later on. In a sense, it is a form of short-term loan. Each month, the cardholder must pay at least a portion of the amount that he has charged on the credit card. The minimum payment is usually around 5-10 percent or $25-50, whichever of the two is more. If a person chooses to obtain a credit card from a bank where he does not have an account, he will be obliged to have his credit card bills domiciliated in his existing bank account.

Interest on purchases and withdrawals is charged on the portion of the bill not paid by the due date. Usually, two different rates apply, one for purchases and a slightly higher one for cash withdrawals. The rate on purchases varies between one percent and 2.5 percent per month. Interest on unpaid purchases accrues from the day the bank credited the retailer with the amount of the purchase. On cash withdrawals, interest accrues from the withdrawal date.

A debit card can be thought of as plastic cash. It allows a cardholder to make a purchase, swipe a card (or have it swiped) and have the payment immediately debited from their bank account. Two prerequisites are required for a debit card: That the cardholder has a bank account and that the amounts debited do not exceed the balance in that account.