What Most Consumers Do Not Understand About Prepaid Debit Cards?

With the holidays near, shopping can become a stressful time for many consumers. They are faced with in increase of shoppers causing less inventory, crowded stores and longer lines. Maintaining a seamless checkout process can seem like a daunting task, but can occur, especially being prepared for potential problems.

Prepaid debit cards are a popular gift for people due to the fact that they can be used virtually anywhere. When shoppers really don’t know anything about what Aunt Bertha does in her freetime or need a gift for their son’s bus driver, someone they have only spoken to about the weather, a prepaid debit card can be a quick idea. The trick with these cards – most people do not understand how they work.

Few and far between these days are anything financially – be it debit cards, checking accounts or loans – not being associated with fees. These cards are no exception. Not only do they have fees, but shoppers can be charged every time they use the card and sometimes when they don’t use it, such as cards that charge users for a month without purchases. The trick is knowing which card you have. Each one has different fees and different stipulations on spending. (On a side note, the gift giver should also expect a fee, just for buying the card.)

So, why do shoppers need to know about these fees? It is the cardholder’s responsibility to know exactly how much money remains on their card. Say Aunt Bertha was gifted a $100 prepaid gift card and spends $63.97 on clothes. A few weeks later she has come to your store and purchased $40 in products, with tax, and wants to purchase it on her card and pay the small remainder in cash. Unfortunately, you can not simply swipe her card, like a gift card, and then have the remaining balance. The store owner or clerk must first put in how much of her transaction she is paying with her prepaid debit card (as if you were splitting her transaction with two types of payments) to come up with the remaining balance to be paid with cash.

So, how much does Aunt Bertha have on her card? All she can remember was that she paid 60-something. Aunt Bertha also doesn’t know that she pays $4.95 each month in fees. When you try to run her card for anything other than what remains on her card, it will simply say she has insufficient funds.

Explaining these details and processes to a shopper can be very time-consuming and frustrating, especially to someone who has never used such a card. These days, prepaid debit cards can hold thousands of dollars in cash and often these types of problems won’t result from these customers, but be prepared. The last thing anyone wants in a long line of people waiting to do business with them is a difficult customer at the front.

Leave a Reply

GET FREE QUOTE TODAY AND START SAVING


Testimonials

It took me a while to decide who I wanted to settle with to handle all of my credit card transactions because every company wants to make it sound like they're offering you the best rates. CreditCardProcessing.com was able compare and beat all of the other offers I received. They were also able to provide me the fairest price on my EMV-compliant terminal. My sales representative and the support team were there to assist every step of the way. Ultimately, I'm looking forward to a long term relationship with this company.

Roland Tran from the Hong Kong Kitchen

It is a pleasure dealing with these folks. Their pricing is fair, their statements are understandable and their employees are knowledgeable and friendly.

John MacMillian from the Great Lakes Baking Company

The service was very professional, my sales person (Steven B.) was very well versed in the product and most helpful in getting our company set up to accept credit cards via my cell phone. Their rates are some of the lowest on the market and their service is unparalleled. I will recommend them to anyone requiring a credit card processing service.

Michael Harper from Deluxe Auto Body

Jonathan C. is wonderful to work with. He is very helpful, accommodating and resolves any issue quickly. It is hard these days to find someone who gives great customer service, but I can say, Jonathan is the best! I would not hesitate to recommend him to any business owner and to assist you in helping to grow your business.

Linda Garner from Regali Da Forno

I called indecisive about getting a device, but speaking to your Sales Consultant completely settled me. He was very professional, knowledgeable and patiently walked me through the process. He always responded to my voicemails and answered all my questions. After I received my merchandise, he called following up to ensure that I had received it. Customer service I would say is 5 stars. Stellar! Thanks Credit Card Processing, I will definitely recommend you.

Sarah Morgan from Vision International Ministries
Call Us Today! (866) 837-0751

© 2016 CreditCardProcessing.com. All rights reserved. Privacy Policy
CREDITCARDPROCESSING.COM, LLC is a registered ISO of Wells Fargo Bank, N.A. Walnut Creek, CA

*Further terms and conditions may apply. Promotion contingent upon CreditCardProcessing.com's receipt of written competing offer(s).

**Certain restrictions may apply.

Promotional offers brought to you by CreditCardProcessing.com.

Call (866) 837-0751 for details.