NOTE: The following contest is open to Canadians only.
So, you received a prepaid credit card (or two, or ten) over the holidays, and you’re thinking:
I should probably spend this on groceries.
STAAAHP. Just stop. I mean, you *could* spend it on groceries. Go ahead! Make my day. But if you do, you won’t be making the most of that magical little prepaid credit card. In fact, you’ll be doing a disservice to gift givers everywhere. Really.
Today, I’m here to show you all the possibilities of prepaid cards. And after our little discussion, if you’re still keen on using it to buy groceries, I promise I won’t hold it against you.
ONLINE SHOPPING. Because open loop prepaid cards look and function like traditional credit and debit cards, they can be used anywhere the card network (American Express, MasterCard and Visa) is accepted, including online, on the phone and around the world. So, if you’re shopping online for say, a new handbag at Michael Kors, using a prepaid card allows you to make a secure purchase while reducing the chances of fraud or identity theft.
Okay, so you may be thinking, I can protect my identity with a Michael Kors store gift card, too. Sure! But then you’d be limited to shopping at Michael Kors. Which illustrates a second benefit: a prepaid card can be used anywhere the card network is accepted, meaning they are not limited to one specific retailer. Plus, prepaid cards are reloadable; store gift cards normally can’t be reloaded once used up.
SAVING. Prepaid cards are an excellent tool to manage a budget, because a set amount of funds are loaded in advance of the purchase. I love, love taking a prepaid card along when we travel specifically for souvenir spending; if I know we only have access to a predetermined amount, it forces us to stay within budget and not go overboard.
Of course, keeping spending to a set amount also means that you can avoid costly overdraft fees and interest charges, which are common especially following a vacation (it’s way too easy to whip out that credit card!).
SPLURGING. Sometimes, it’s necessary. And prepaid cards make it so easy to do! After all, there is no waiting for a cheque to arrive in the mail or clear the bank. Funds are universally accepted, and they function in a similar fashion to credit and debit cards at the point-of-sale. And most importantly, if you do receive a prepaid card for a special occasion, remember – it’s your gift to spend! It’s a chance for you to be completely spontaneous or finally treat yourself to something you’ve had your eye on. Which brings us back to the question at hand…
Now that you know all about the benefits of prepaid cards – how will you spend yours? One lucky ready will win a $100 prepaid card to shop, save or splurge! Simply fill the form below with your qualifying entries.
And, for more information about open loop prepaid cards, visit the Canadian Prepaid Providers Organization (CPPO).