Introduction
If you’re planning on buying a fixed value card, there are some things that you need to know before making the purchase. Fixed value cards can be useful for small purchases and day-to-day expenses, but they have their limitations and drawbacks too. Before you buy one, take time to understand the pros and cons so that you can make an informed decision about whether this type of payment method is right for your situation.
Pros
Prepaid cards are a useful way to make small day-to-day purchases instead of charging them to your credit card. They can be used to load up a gift card, or even a digital wallet.
They’re convenient and easy to use (you just have to put in the amount of money you want).
Convenience
Fixed value cards are convenient. You can use them to pay for things without having to carry cash or a virtual prepaid debit cards, which is great if you’re forgetful or don’t want your wallet full of plastic. It’s also easier to manage because there’s no need for frequent reloading (you can only add money at ATMs).
The main downside of fixed value cards is that they don’t come with any sort of reward system attached; however, this can be good news if you’re looking for an alternative way of earning points/miles/cashback on purchases made outside the store where you bought them.
Easily controlled
Fixed value cards are a great way to manage your finances. You can use them to control spending and avoid overspending or debt, but they don’t have any features that make it easy for the cardholder to create their own budget.
There’s no way for you as the owner of a fixed-value credit card (FVC) to set up an automated payment system where every month your bill gets paid automatically from your account, or even better—you don’t even need any extra equipment like an online banking app or software on your phone!
Instead, with FVCs there are only two ways: either manually enter transactions into an online portal or call customer service at each store where you shop and ask them what prices apply during certain time periods based on when each sale took place (if at all).
Transparent pricing
You’ll get the best possible price on your card, no matter how much you spend. That’s because there are no hidden fees and no minimum balance requirements. Plus, there are zero interest charges or credit checks to worry about!
It’s also important to note that most of these cards have transparent pricing—meaning they’re not as open to negotiation as other types of credit cards might be (like those with annual fees). This means that if you want a certain amount of cash back or points per dollar spent, it will cost extra money up front; however, this is usually less than what would be paid by another company offering similar products without such restrictions.
Reduced paperwork
Fixed value cards are also a great option for those who have trouble keeping track of receipts and expenses. No longer will you need to keep track of your bill payments or credit card payments, as all the information is stored in one place. And when it comes time for tax time, there’s no need for receipts either!
Tighter security control
With a fixed value card, you can load the funds onto your card and use it as usual. However, there is also an option to set up a PIN number so that only you have access to your account. This helps prevent others from accessing your funds without authorization. When using this feature, it’s best not to carry too much money on hand because if someone steals or finds out about an ATM PIN number they could easily use those funds against you.
Additionally, fixed value cards come with security features such as an anti-skimming device which keeps track of who has entered their personal details at any given time (such as date/time). These devices will alert staff if there are any unusual activities taking place within their system during certain periods such as weekends when people tend not get around much since they’re usually working full time jobs outside of regular business hours.”
Loaded with monetary value
You can load a fixed value card with money. This is one of the most important benefits of this type of debit card and something that not all banks offer. If you don’t want to carry cash around, this option is perfect for you!
You can use the card in person or online at any ATM machine that accepts Visa/MasterCard/American Express cards (Note: some merchants may not accept these types). You’ll also have access to your balance anywhere in the world where internet access is available—so long as you have an existing account with us, it’s easy enough for us to transfer money onto your card so that way when making purchases online or offline they will appear immediately.
Single card for multiple transactions
A single card for multiple transactions is a great way to save money. If you’re looking for a way to use your credit card more efficiently, then this might be the solution you’re looking for.
A fixed value card can also help reduce your overall spending by helping you make smaller purchases on a regular basis and making sure that each purchase costs exactly what it should do. You’ll never have to worry about overspending again!
Can be reloaded at any time
The great thing about fixed value cards is that they can be reloaded at any time. You don’t have to wait for your card to expire before you can use it again, and this means you can make day-to-day purchases with them.
Fixed value cards are also useful for traveling abroad because they don’t have an expiration date; if you travel frequently, then this could be a good way for saving money on international flights and train rides!
Finally, fixed value cards are also useful if you plan on making online purchases as well as in-store purchases (like when buying groceries). Since there isn’t an expiration date on these cards, then they’ll always be valid until they’re spent—so even though they’re not very liquid in nature (they don’t change hands often), this makes them ideal tools for making sure all of those expenses get paid off!
Customised benefits can be added to the card.
The more customised the card, the more expensive it will be.
Customisable benefits can be added to your card to make it more attractive and flexible to you. You can choose from a wide range of options and tailor them as per your needs.
Cons
- Fixed value cards are not ideal for large purchases.
- They’re less flexible than other types of cards, so they’re not great if you need to use them regularly or frequently.
- The amount that’s available on your card is typically fixed and can’t be changed unless there’s an emergency situation (like losing your wallet).
Expensive in the long run
Fixed value cards can be expensive in the long run, especially if you don’t use them much. They’re more expensive than credit cards and debit cards because they require more funds to be deposited into your account to cover the full amount of your purchases.
Fixed value cards also have fees associated with them that aren’t found on other payment methods. For example:
- Fixed-value card issuers may charge an annual fee (or “membership fee”) that goes towards paying for their services or products such as rewards programs or better security measures against fraudulently used accounts; these fees vary from one store’s program to another so it’s important check with each store before making any purchases so you know what kind of cost/benefit ratio exists between this type of purchase versus just using cash instead.
- Credit card companies like Visa & MasterCard typically charge merchants a cash advance fee when someone uses their credit card at checkout instead of paying directly from their bank account via direct deposit – this gets added onto top of whatever balance was left over after making deposits into accounts over time through regular monthly transfers either electronically through online banking systems like Chase QuickPayTM.
Know what the pros and cons are before you buy a fixed value card.
The main drawback of fixed value cards is that they can only be used for purchases that have a one-time value. If you want to use your card at places like Amazon, Best Buy and Target, you’ll need a different type of card with more flexibility.
Other potential downsides include:
- You can’t use them for recurring payments or recurring bills (like student loans).
- They don’t work well with online shopping because the transaction isn’t done through Visa’s network. Instead, it’s processed by the retailer themselves using their own payment processor; this means that if they run into any problems while processing your purchase—for example if there’s an issue with their system or something goes wrong during shipping—you’re out of luck!
Prepaid cards are a useful way to make small day-to-day purchases instead of charging them to your credit card.
To avoid the interest charges, you can use prepaid cards for daily expenses like coffee and lunch break at work, or even as a backup when shopping online. If your business takes a lot of cash advances, then this might be something that would work well for you!
Conclusion
These are a few of the pros and cons of prepaid cards. You can choose from any of these options if you’re looking for one, but make sure that you know what they all have in common before making your decision.
