Prepaid Cards: Common Mistakes to Avoid

People have loved prepaid cards from day one. In fact, the first time they were introduced likely won’t be topped as far as reception goes. It’s no surprise that people are enthusiastic about prepaid cards. They have been such an excellent way of getting the best deals and rewards without any hidden fees or monthly bills.

The popularity of prepaid cards is also undeniable in the business world. Nowadays, prepaid card for business are used by countless brands and entrepreneurs the world over. Those who use prepaid cards for business are quick to admit they offer benefits that are just hard to beat.

Prepaid cards can give you access to a number of exciting benefits that your typical credit card just doesn’t offer. If used correctly, this type of plastic could really change the way we think about using cash in everyday life. That said, it is important that you also know the mistakes to avoid when using a prepaid card apart from the do’s.

Knowing the mistakes to avoid is critical so you can steer clear of any possible pitfalls and enjoy the full features and benefits this amazing financial instrument can provide. Below are some of the most prevalent mistakes you need to steer clear of when using your prepaid card:

Mistake #01: Not Protecting the Card’s PIN

You’re probably thinking that protecting the PIN and not sharing them with anyone else is just common sense, but it’s surprising how many people take this basic security practice for granted. When it comes to the safety and security of our personal information, we should never take risks.

Unfortunately, many people write their PINs on their prepaid cards or write it on a paper and place the paper in the same wallet where their prepaid card is. This is obviously a big no-no but some people do it anyway. When the card is lost or stolen and PINs are readily available, shady characters will be able to gain access and use your card.

As a general rule of thumb, choose a PIN that you can easily memorise but difficult for others to guess.

Mistake #02: Not Reading the Fine Prints

This is one of the most common mistakes that people make. They don’t read through their cards’ fine print before using it. As a result, they often are not able to fully enjoy all the features and the benefits the card offers. It is recommended that you should always read the fine prints because they can contain a lot of important information. For example: how to use your card properly and the fees associated with it.

Mistake #03: Reloading the Maximum Amount on the Card

Many people assume loading the maximum amount on their prepaid cards is convenient and harmless. While it is indeed convenient, there are a few downsides to this practice. If truth be told, loading the maximum amount can also pose certain risks that can otherwise be avoided if you don’t load the maximum amount.

Rather than loading the maximum amount each time, it is recommended that you look into your spending habits before you decide on the amount you will load. Another crucial factor you need to consider is the frequency you will load money on your account. If you will use the card often, loading a huge amount is recommended.

However, if your prepaid card is used sporadically, it would be wise to just load the amount you need. The good thing is you have the option to load as often as you want. What’s even more convenient is there are several loading options available at your disposal.