Proponents of pre-paid cards say they are safer and more convenient for consumers than carrying cash around, and the costs are lower than check-cashing and payday lending outlets. They are also accessible to those with no or very poor credit histories. In fact, they are ideal for the more than estimated 80 million or so people in the U.S. who lack basic banking accounts.



Nevertheless, the appeal of these cards transcend the unbankable community, and now extends to everyday people who want to take advantage of Prepaid Debit card benefits.

PrePaid Debit Cards over Checking Accounts

Let's face it; checking accounts have some major benefits. One of the most commonly used benefits from checking accounts is the direct deposit feature. For those who do not write checks, but pay their bills using their check card or debit card, a prepaid debit card may be a better solution.

They are easy to qualify for, and offer the same direct deposit feature. Furthermore, many people can not qualify for a checking account because of a negative ChexSystems report. Therefore, the Prepaid Debit card offers many of the same benefits of a checking account, without the hassles.

For the unbanked who obtain a Prepaid Debit Card, the fees charged at ATMs are lower than those at check-cashing stores, and they are a safer alternative for employees who cash their checks on payday and then carry cash until the next one.

If a card is lost or stolen, most issuers have a toll-free number where the card can be reported and a new one issued, minus a reissue fee. The prepaid card alternative beats losing your hard earned cash.

Using Prepaid Debit Cards for Internet Shopping

Another reason why many have chosen to use Prepaid Debit cards is for the sole purpose of online shopping and bill pay. The cards are ideal for individuals who do not want to use their personal credit cards to do internet shopping.

They can still feel relatively safe because the Prepaid Debit cards are issued by banks and do not have the individual's personal information available. They are considered a safe and effective alternative for everyone who shops over the internet, even those with a bank account.

Governments now using PrePaid Debit Cards

One of the largest groups switching to Prepaid Debit Cards is government entities. Using the cards, government entities can disperse funds or wages quickly and painlessly to their employees or the general public.

The cards are ideal for recurring transactions, like unemployment benefits. The cost to reload a card is minimal compared to sending a check every week. Because of the huge savings, even the federal government will likely start moving to prepaid cards in the next couple of years.

Think about how many Veterans, Social Security, and Medicare checks they mail each year. Transfering those payments onto a PrePaid debit card will save the government tons of money and benefit the recipients as well.

Prepaid Debit Cards over Credit Cards

Finally, Americans are getting a grip on their trillion-dollar credit card debt.

This is evident by the fact that debit card usage outpaced credit card usage in 2006, which means the credit card companies didn't make as much money as they did in 2005.

Many people are wising up to the schemes of credit card companies, with their fluctuating interest rates. People are increasingly opting for the ease and convenience of a Prepaid Card, which uses pre-loaded funds and does not get them in more debt.

With a Prepaid debit card, you can budget your money, and actually reduce your expenses instead of increasing your debt with credit cards.

Then take the money you used to give to credit card copmpanies and invest it. If you saved only $100 a month and invested it in an 8% investment over the course of your working life you would recover over $146,812 imagine if you recovered an extra $300 a month.