If you are interested in a prepaid credit card, we would be happy to inform you about the features, services and offers. Find out what you can (and should) expect from this payment method and compare current top providers and offers on the market. See comv6.com for details
You can use all the usual functions with a prepaid credit card:
- Online shopping,
- Cashless payment in the shop
- Withdraw cash at ATMs (also abroad)
- Store the card as security (for example at car rental companies in other European countries)
As with the EC card, a PIN is also supplied here, which is only required for cash withdrawals from ATMs. Payment in the shop is only made with a signature and on the Internet only the number, check digit and validity are requested. The security against fraud is therefore relatively low. Even a carelessly thrown receipt can be fatal if the credit card number has not been printed in encrypted form. Unfortunately, this is the case with many companies. Online shopping is even more dangerous. This is where data thieves can easily view your data and use it for fraudulent acts.
The card for everyone
The difference to a normal credit card is that, like with a cell phone, you do not pay on account, but can only dispose of the amount that you previously transferred to the card. Almost all banks now have a prepaid credit card on offer. The advantage:
- The card is available without a Credit bureau exam
- There is no minimum income
- A purchase on pump is excluded (you can not spend more than is actually there)
Such a card is particularly interesting for minors who spend some time abroad or people who have problems with negative Credit bureau entries.
Direct debit return on the checking account
Most companies only accept advance bank transfers or credit cards online. It is particularly important here to prevent fraudsters, because it is uncertain whether the ordered goods will come after the transfer has been made. With the credit card, the customer has the option to object to an unassignable debit. For this purpose, the document is usually first requested to check whether a signature or approval is available. As with the direct debit return on the checking account, the amount can be retrieved from your own bank.
Unfortunately, prepaid credit cards are relatively expensive compared to the classic variant. Up to 119 USD per year are due for this, which are already debited when you apply. However, many companies link the fees to the turnover made, so that the annual fee is reimbursed when the purchase turnover is reached.
In some cases, the banks even charge fees for toping up the card. These can be based on the deposit amount, i.e. stated as a percentage or calculated as a fixed amount. There are also banks that set a top-up limit. This is particularly annoying when vacationing abroad, as a new transfer from a German current account to the prepaid credit card is necessary.
Interest on the credit is usually not provided. So you should think carefully whether you prefer to use a standard credit card.