Prepaid credit cards are available for South Africa clients where you can load a card with a prepaid spending limit amount. You can use these cards at shops, petrol stations, restaurants, cinema’s and to buy goods online. In fact just about anywhere a vendor accepts Visa or MasterCard. They can also be used to withdraw cash at ATM cash points around the world.
Every purchase that gets made on a prepaid credit card gets deducted from a personal deposited balance in a users account. Which makes this buying option different from a normal credit card and gives you a little more spending control. There are no late payment fees, no accumulation of debt and no finance charges associated with this type of card.
Is It Worth Getting A Prepaid Card?
Yes it can be worth getting a prepaid credit card. Especially if you are blacklisted and trying to rebuild a bad credit record.
This may also interest you: Credit Cards For Blacklisted People
Funds are loaded onto your card which you then use to make purchases. So you are not borrowing money from the bank. You are in fact using your own money when spending on these cards.
A few more advantages to having a prepaid credit card are, they are efficient as there is no interest charges. They are convenient as you can pay for goods just like you would with a regular Visa or Mastercard. It is much safer than carrying money around with you.
You are responsible for setting spending limits on this type of credit card and loading your own prepaid amount. Allowing you to spend wisely and keep your shopping habits under control.
These cards can also be used in helping young adults become financially responsible and learn how to use a credit card correctly. Parents can load the card with a cash limit and then monitor when and where their children are spending it. Helping them to handle money and spending responsibly.
Which Banks in South Africa Offer Prepaid Cards?
Banks in South Africa that offer prepaid credit cards in some form include:
- Absa Bank
- Capitec Bank
- FNB
- Standard Bank
- Nedbank
These solutions include prepaid cards such as the Nedbank travel card. Or an FNB gift card. Or the Standard Bank prepaid gift cards. As well as petrol cards that allow you to deposit amounts and use your card to pay for fuel at petrol stations.
Some banks offer what they call a virtual card. Again this is a type of prepaid card that you load with an amount of cash. So that you can use it to purchase goods online.
Use Prepaid Credit Cards Internationally
You can use prepaid credit cards internationally with very little difficultly and to your own benefit.
When you are travelling abroad it can be expensive to purchase the currency of a country that you are visiting. Particularly if you are travelling for a long period of time.
The easiest way to buy the food and goods you need is to use your Visa or Mastercard. Because these are recognized international brands.
You’ll find that ABSA, FNB, Standard Bank and Nedbank provide credit cards that you can use to pay for everything across the world. Taking the stress out of your travels.
If you would like to use prepaid credit cards internationally but only have a standard debit card then this is a little more difficult.
However, at most South African banks like Nedbank, Standard Bank, FNB and ABSA, you can use your debit card internationally. As long as you provide your bank with notice that you intend to travel.
This way they know that it is you doing your online shopping in Rome, rather than a criminal. Most debit cards are now also fitted with a chip. So that they fulfil exactly the same role as your Visa or Mastercard credit card.
Although a credit card is easier to use, debit cards can be safer because there is a limit to how much you can spend. Prepaid credit cards provide similar and important cash limits.
Credit card fraud is a huge industry internationally. There is nothing worse than your holiday being ruined because someone stole your card and has used it for their online shopping or to make purchases.
You can get insurance against this type of fraud. Which is something you can find out more about at your bank when you ask how to use prepaid credit cards internationally.
To Summarize
In summary this kind of card and way of spending is becoming more popular these days. Because people are becoming more aware of and experiencing the dangers of getting into debt with normal credit cards.
Modern consumers seem to be more “debt aware”. So a good alternative to the usual way of spending your money is the prepaid credit cards available in South Africa.