Prepaid cards issued by many banks to their customers are now becoming widely in used just like credit and debit cards. As it is the case with payroll cards, there are many kinds of prepaid cards available today. Each issuer of these plastic cards has its terms and conditions for the use of the card. But in general, holders of such a card are required to fund the card with a stipulated amount of money on monthly basis before it can be used for purchases or payment.
The growing popularity of prepaid card is based on the fact that its dependence on the financial stability of the holder is lower when compared with other forms of cards. For this reason, people who are not able or do not meet the requirement for the issuance of credit card can easily meet the requirement of prepaid card. Besides the two can be issued to one person and this is why a lot of holders of credit cards also have prepaid cards. However, people request for this card because it does not have much security issue as credit card.
But on the negative side, prepaid cards are not used for all transactions. They are not widely accepted as credit cards. There are certain goods and services that cannot be paid for with prepaid cards. This is the reason why prepaid cards are not frequently used as credit cards are. On the positive side, payment made with prepaid card does not attract any chargeback to any of the parties involved in the transaction even if one is not happy with the transaction. This aspect of prepaid card may be a disadvantage for the users but a thing of joy for the merchant.
Like every other type or cards, prepaid card use personal identification code number shortly and commonly known as PIN. Regardless of this and its other security features, fraud can also be committed through it. The fraudsters are becoming more and more crafty and smarter in carrying out their heinous act. This is why cases of prepaid card theft are on the increase today. The fraudsters keep changing methods without abandoning the old methods they have been using. Some prepaid card fraudsters have also become technologically more sophisticated than before. They can provide a card that seems to be well funded when in actual fact there is no money in the card. The fact that a prepaid card can be used to purchase item in credit of a stipulated amount worsens the situation.
When there is a prepaid card fraud, it is normally the shop owner that bears the lost or is held responsible for something that he or she does not know anything about. This is why merchants should be very careful when accepting payment with credit card. The use of bindb software is one of the veritable means of avoiding prepaid card fraud. With a BIN (bank identification number) lookup, shop owners will be able to know the card details and then match it with the information provided by the users before approving any order.