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Prepaid Credit Cards – What Are the Differences?

Summary

Would you like to take a closer look at prepaid credit cards? Pay close attention to the difference here. With every provider there are big and small differences that could be important to you. Prepaid credit cards and the small […]

Prepaid Credit Cards - What Are the Differences?  Prepaid credit card: It's easy to top up without an account (Source: imago images / Roland Mühlanger)

Would you like to take a closer look at prepaid credit cards? Pay close attention to the difference here. With every provider there are big and small differences that could be important to you.

Prepaid credit cards and the small difference

These days we are all inundated with prepaid credit cards, a few years ago there were very few of them. Today every business has its own card on the market, but the differences in performance are quite large. You will notice the difference in the price, the limit, the interest and the extras.

Credit Interest: You cannot overdraw

Prepaid credit cards are all prepaid. That means in plain language: You cannot overdraw. If you use the card to rent a car while on vacation, make sure you have enough credit. Because the card is blocked for a while. That can amount to 2,000 or 3,000 euros. If you want to use the card for the deposit, you should have at least 5000 euros, if not more.

Brand new embossing on prepaid credit cards

Finally there are prepaid credit cards with embossing. These are still pretty important in some cases. Small shops that still use Ritsch-Ratsch devices will not accept the normal prepaid credit card. With an embossing, you can also pay in such shops. Unfortunately, there are only very few providers who offer such. However, as more and more shops are switching to online systems, embossing will soon no longer be necessary.

Please make sure that there is always enough credit on the card, especially if the card is embossed, it can happen that it is only debited afterwards. That can cost you dearly. Banks usually apply for this with a notice of termination.