Prepaid Cards: A Remedy Against Identity Theft

Over 8 million people were victims of identity theft in 2010 including credit card and debit card holders. One way to protect yourself from identity theft is to purchase a prepaid credit card or prepaid debit card. American Express recently began offering a prepaid debit card. I am very careful about where I use my credit card and debit card, online shopping and general protection of my personal information. Unfortunately I still became a victim of identity theft due to a Netflix scam that charged my checkcard $7.99 for a movie I never purchased.

I didn’t notice the unauthorized transaction until I got my bank statement because I have used the checkcard in over 3 months. I immediately had the account closed. This further reinforces my decision to pay for everything with cash. However, some merchants prefer customers pay with a credit card so in those instance I will have to use my credit card. There are several benefits of using a prepaid credit card or debit card. The benefits of using a prepaid credit card are:

1. Can be purchased online or at a retail location.
2. Load cash online, from another card, direct deposit or at a retail location.
3. Zero liability.
4. Accepted everywhere.
5. No maintenance fees.
1. Helps manage your money. Can’t spend more than you have.
6. Good for those with bad credit.
7. No interest rates.
8. Can be used overseas.
9. Can be used at ATMs.
10. Provides payment history to the major credit reporting agencies.
11. Some companies are used codes to prevent credit card skimming such as American Express, Discover and MasterCard.
12. Can’t go into debt.
13. Must be 18.
14. Can reload money as many times as you want.
15. Can make purchases online.

The benefits of using a prepaid debit card are:
2. Can be purchased online or at a retail location.
3. Load cash online, from another card, direct deposit or at a retail location.
4. Accepted everywhere.
5. Zero liability.
6. No maintenance fees.
7. Helps manage your money. Can’t spend more than you have.
8. Can’t go over the limit.
9. Can be used overseas.
10. Can be used at ATMs.
11. Some companies are used codes to prevent credit card skimming such as American Express, Discover and MasterCard.
12. Must be 18.
13. Can reload money as many times as you want.
14. Can make purchases online.
15. No late fees.