Saving & Budgeting

Why Prepaid Cards are Great for Online Shopping

If you love to shop online then a prepaid card might be a great option for you!

Person shopping online using a prepaid card to make a purchase

Online shopping is possibly the most convenient method of purchasing goods and services without dealing with crowds, queues and showing up to the shop to buy a particular item, only to find it has been sold out. In this age of technology and almost everything accessible via the internet, more people than ever are shopping online for various reasons.

While there is no doubt that shopping online has its advantages, we are also faced with many disadvantages. Many people are making use of prepaid cards specifically for online purchases. Here’s why you should consider getting one too.

Prepaid Cards Help You Control Your Spending

One of the pitfalls of online shopping with a credit card is that it is too easy to over-spend. While most people tend to shop online for moderately priced goods, it’s easy to dismiss them. The trap is when you make multiple small purchases that can quickly add up to a considerable spending spree that you will be paying off for several months. If you don’t pay off the entire balance on time, you’ll also end up adding excessive interest amounts in addition to your purchases. Not only will this put a strain on your budget if you don’t reign in this spending, but you may also end up with a credit card debt you can’t handle. 

A prepaid card can help you control your spending. You allocate an amount and deposit that into the prepaid card. As long as you stick to that amount, you won’t overspend. If you have trouble sticking to credit card limits, put those cards away and only shop with a prepaid one. 

Limit Credit Card Theft With a Prepaid Card

Every time you make a credit card purchase online, you need to input your details and your credit card number. These details can be stolen by hackers who can rack up enormous amounts on your credit card, and chances are, you won’t realize it until your credit card statement arrives. The losses could end up in the thousands, depending on your limit. The same thing can happen with a prepaid card, but the loss will be limited to what’s left on the card. You may still suffer a loss, but it won’t be one that will send you into a downward spiral of credit card debt.

Keep Your Banking Details Private

Identity theft is a genuine concern that can affect anyone with a credit or debit card from a bank. If these cards are lost or stolen, anyone who has them can use them to open other banking products, including loans and credit cards. When you register for a prepaid card, you still need to provide some of your details, but this information is not stored on the card. The card can’t be used to open other accounts, so your privacy stays protected. 

Prepaid cards offer you all the benefits of regular credit or debit cards without the worry of overspending or becoming a victim of fraud. If you love the convenience of online shopping but have real concerns, a prepaid card is the best solution for you. 

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