2023-07-08 06:09:00
Guide-epargne.beIn principle, a credit card allows you to make payments and withdraw money anywhere in the world. This is therefore very practical in case you are going on a trip soon. In addition, the amount you pay or withdraw with your credit card will be debited from your account on a monthly basis. However, you may be surprised if you have used your credit card often while traveling. So isn’t it better to use a prepaid payment card for this purpose? Below, Guide-epargne.be analyzed the advantages and disadvantages associated with it.
What is a prepaid payment card?
This is a card on which you put a certain amount that you are going to spend. Then you can use it to make payments and withdraw money worldwide, but never more than the amount you put in it. In general, the maximum authorized balance is 5,000 euros. In principle, you must always confirm your payments by entering your secret code.
What advantages and disadvantages are associated with it?
With a prepaid payment card, you can make payments in many more places than with your debit card, but not everywhere you can with a regular credit card. So you can’t use it for tolls in France, because the recipient has no certainty about how much he can ‘reserve’ on a prepaid card for future spending.
In addition, prepaid payment cards do not offer insurance, unlike credit cards, while fees are indeed linked to prepaid payment cards. First, in most cases, you have to pay an annual fee to use this type of card.
Also read: Check carefully which insurances are linked to your credit card.
In general, loading or unloading money on this card does not cost you anything, unless you load it with cash, for example. Payments within and outside the euro zone are also free. On the other hand, withdrawals of money within and outside the euro zone are chargeable in the vast majority of cases.
With some cards, you will also have to pay a monthly amount if you haven’t used the card for a while. And as soon as it is a foreign currency, you will also have to pay an exchange rate commission.
Interesting in certain situations
All in all, such a prepaid payment card is no more attractive than an ordinary debit card with the Maestro function, except for adults who travel to a country outside the euro zone in which their debit card classic does not work.
Another example: your children are going abroad and you want to give them a certain budget on a card. In this case, you can quickly load an additional amount on the card to cover additional or unexpected costs.
Your trip falls through due to a canceled flight: in which cases are you entitled to compensation of up to 600 euros?
Do you want to contract a prepaid card?
A few years ago, almost all major banks still offered such prepaid payment cards, but this is no longer the case today. Currently, you can still find prepaid cards from Belfius, KBC and bpost (without a bank account). The advantage: anyone can apply for such a card, without having to meet any financial conditions. Indeed, you do not conclude a credit agreement in this way.
Are you looking for a prepaid payment card or rather a classic credit card? The Guide-epargne.be comparator allows you to quickly and easily compare several formulas.
Read more on Guide-epargne.be:
Check carefully which insurances are linked to your credit card
Getting more interest on your savings abroad: a good idea?
This article is brought to you by our partner Guide-epargne.be.
Guide-epargne.be is an independent comparator of banking products and seeks competitive prices as well as better rates.
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