Incentive Cards And Their Worth

Approval Guaranteed! When applying for a traditional debit or credit card, you’ll always need to go through a credit check before being approved – and for some people with poor credit history, this is often a breaking factor. Yet with prepaid debit cards, there’s no credit check needed, since you’re simply loading your own money onto the card. Bankers and lenders are happy that prepaid debit cards carry no credit risk, while consumers are pleased that they can have their very own “debit cards” without going through the hassle of a nerve-wracking credit check This simple fact encourages thoughtful spending. It also makes one appreciate more of what one already has in one’s possession.

But now there are more incentives to get a bank card. Banks are working hard, competing for your business. In the recent years, they came out with several types of incentives for the check card holders, such as checking account sign on bonuses. Most recent, and apparently the most successful incentive is debit card cash back, or check card rewards card: based on the total amount of money spent each month, you are eligible to receive 1%, 2%, 3%, or even 5% reward on all the money spent that month through your check card in certain common categories, such as gas, groceries, and even your favorite cup o’ Joe at Starbucks Short of having an overdraft allowance on your checking account, it becomes impossible to spend more money than is held in your checking account.

Incredibly so, the incentives and rewards for check card users are approaching those of the best credit cards available. The merchants love to accept check cards since, through PIN based transactions, they incur a very modest, $0.10 transaction fee or similar. With a so called “credit” transaction through your cash back ATM card, they, however, incur a much higher fee of $0.30 + 3% of the purchase value, or thereabouts. A big difference. As much as the merchant dislikes paying these fees, as long as they bring in a new customer who wants check card cash back, the merchant will profit from the idea of cash back ATM card still he main reason why a consumer would want to use a bank card is because it encourages prudent spending.

Based on the aforementioned fees, banks would love to have you switch from the credit card transactions to “credit” type check card transactions. Why? First, there is no credit risk in it for them. While a credit card charge always carries a risk of not being paid back, a check card “credit” transaction carries no such risk, yet it still provides the 3% transaction fee for the bank. Check card “credit” transaction is like a free lunch for the bank. That is why banks are happy to provide 3% and even 5% cash backs on selected merchandise. Together with other fees that come up, they will make the profit.

I am often asked why someone who is not doing anything illegal would want to have banking and spendin myprepaidbalance  g privacy. And I am also asked if they are legal. For the first question, if you feel that way, I want to ask you, why wouldn’t you? And for the second, yes, offshore debit cards are perfectly legalI could easily list many examples of legitimate uses for legal offshore debit cards. But that is the topic of another article. Let’s just say they are one very important tool that goes a long way in protecting you, your finances and your familyBut, just having a debit card is not enough. There are a couple of things you need to be aware of.First, is the jurisdiction where the card is issued. Having a card from a bank that is going to give up your personal information to the first person who comes looking for you is not going to be of much value.