What is a Reloadable Debit Card?

• A reloadable debit card is a type of debit card that you can continuously load money onto and use to make payments that you would usually make using a credit card, without the risks that a credit card comes with. This is because a reloadable debit card will only allow you to spend money that you have actually loaded onto the card, no more. You can get a reloadable debit card from many financial institutions, retail merchants or from certain websites. Unlike a credit card, there are no stringent credit or income requirements, since you are not borrowing money. You do need to be 18 years old and have photo identification.
  
  In order to get the card you need to visit the website, merchant or institution offering the cards, fill out the required forms and pay a nominal fee for processing. Normally it will take a few days to process the card and then you can load money on it and start using it for purchases.
  
  A reloadable debit card (which can be Visa or MasterCard branded) is accepted anywhere an ordinary credit card would be accepted.
  
  

Benefits of a Reloadable Debit Card

• There are a number of reasons to use a reloadable debit card. If you want to shop or make payments online, a reloadable debit card is a good way to do this without compromising your bank account information. If your card number is stolen, the thieves can only take what is on the card.
  
  If you don't have a bank account, then a reloadable debit card is a good way to store your money and still have access to your funds without carrying cash around. Some reloadable debit cards have a direct-deposit feature, which allows you to route your paycheck and other payments to it. Plus, you will be able to make online transactions and hotel and rental car reservations.
  
  

Considerations

• If you are considering a reloadable debit card, it is important to be informed of the various charges associated with them. These include the amount you pay to process the card, charges on any purchase you make with the card (in some cases), charges on any ATM withdrawals you make with the card and possibly a penalty for keeping the card inactive for a certain period of time.
  
  Due to the variety of cards out there, it is important that you read your agreement carefully and ask for clarifications when in doubt, so that you know what your obligations and responsibilities are when using the card.