Prepaid cards may be safer than a debit card because they limit losses in the event of theft and are not linked to personal information, according to Bankrate. These features are useful when traveling or making online purchases.Continue Reading
If stolen, thieves can only access the amount the consumer has loaded onto the card, explains Bankrate. Further, they are safer for online purchases because hackers are not able to access sensitive personal information, such as bank account and social security numbers. Prepaid cards are also useful budget management tools, allowing consumers to limit spending.
On the other hand, prepaid cards may not have certain protections associated with debit cards against fraud and loss, warns Fox News. As of 2016, federal law limits liability to $50 for stolen debit cards when the consumer reports the loss within two days.Learn more about Credit & Lending