Most credit card companies such as Visa, Mastercard and American Express issue prepaid debit cards.

A prepaid debit card works very much same to a prepaid phone card. You can purchase a prepaid debit card by paying the amount you want as your limit for spending. You can add funds to your prepaid debit card as and when you need it at any available retail location or an online bank. After filling your debit card you can use it as you like until the balance reaches zero. There are some benefits of prepaid debit cards as compared to credit cards.

Following are the benefits of Prepaid Debit Cards :--

You won't need to carry cash with you each time you go out for purchasing.

Since the debit cards are accepted internationally and recognized globally, you can use it when you travel. You don't need to carry international currencies while traveling abroad. Nowadays all major card issuing companies and banks issues debit cards. The other major advantage is that you won't have to worry about monthly credit card bills and missing credit card payments & high interest rates associated with it. Also while getting debit cards your credit history has no important role and thus anybody can avail debit cards.

With the prepaid debit card in your pocket, you can easily reload or add funds to your prepaid debit card. It is very simple to add funds to your debit card. Call the issuing company and authorize them to transfer funds to your prepaid credit card or get online and do the transfer yourself. This is very convenient to transfer funds, specially when you are traveling or on vacation.

Disadvantages of debit cards :--

The charges levied on prepaid debit cards can vary from company to company and can be high. There are fees associated with while applying for a prepaid debit card, adding funds to it, exceeding its limit as well as cashing out and canceling the card. So before you sign up for prepaid debit card it is advisable that you compare the various fees offered by the issuing companies. To operate on your prepaid debit card, you will need to have a PIN. The safety & security of both the card & the PIN is very important. Always keep your prepaid debit card safe from unauthorized or illegal use by changing your PIN frequently. You can also ask your bank or issuing company to set a daily spending limit on your card. This would also ensure that when your card is stolen, you don't lose out all your money.

Though there are some disadvantages to debit cards, the benefits are more luring and hence the popularity is more visible.