In among the many different options to pay by means of plastic money, people often end up being confused on debit and co-branded prepaid cards. They are way too similar both in their cancellation policy as well as their usage for most of them to be really sure of which one they should choose from. So, you may exploit them worldwide and they may be cancelled when stolen or lost with ease. However, their logos make them distinct. This article addresses those concerns to make selection for you easier.

Information on Customers. A prepaid card issuance would need less and some very basic information regarding their customers. A debit card though would call for entire, much detailed, background information.

Is There A Credit Check? Customers are not charged with any credit check before the issuance of prepaid cards. However, credit checks are performed by the banks for debit cards to verify customer’s credit score and ratings before they issue them.

Card Fee. One of the best things about prepaid credit cards (especially the co-brand prepaid cards) is that they require only a minimum maintenance or opening premium while debit cards cater to a relatively different scenario. Their fee is in accordance with the bank account and will also include the costs of penalty for having overdrafts long overdue.

Card Charges. Prepaid credit cards are often charged with a small opening fees or maintenance charges, especially in cases of co-branded prepaid cards. On the other hand, debit cards with be charged with any fees applicable to the bank account, as well as any penalty fees applied to overdrafts that have become overdue.

Do They Require Customer Information? Complete background information of the customer is required in order to issue a debit card. However, in case of prepaid cards, merely a few basic details are needed from the customer.

Using ATMs. Not all of the prepaid cards empower a bank customer to be able to withdraw their money through an ATM whereas debit cards do facilitate their users with this benefit.

Conclusively, co-branded prepaid cards are ideal for those who do not have bank accounts yet and will probably take to a loan to fulfill their needs. Others owning an account already and not wanting to exceed their limits can simply go ahead in opting for debit cards. Be sure to act wisely.

Debit cards are a good option for those individuals who already have bank accounts and will not be tempted to exceed their expenditure limits. On the other side, for youngsters who do not have bank accounts and will be tempted to take loan, co-branded prepaid cards are the right option. So make the right decision today in accordance to your requirements!. Also published at Prepaid Cards Or Debit Cards – Which One To Select?.