What is a Prepaid Card?
A prepaid card is like a credit card that the cardholder pays in advance. Traditionally, the cardholder loads money onto the prepaid card, then spends that money to buy things or withdraw cash. These cards usually require a PIN number. In some cases, money can be loaded onto prepaid cards directly from a paycheck or bank account. The money normally can be recovered if the prepaid card is lost or stolen. Unlike credit cards, there are no interest payments, but there may be fees associated with setting up, loading, using, and maintaining prepaid cards. These fees may mount up.
Can You Use Your Prepaid Card Outside the U.S.?
Some prepaid cards can be used outside the U.S. Indeed, some prepaid cards are intended to be used outside the U.S. (e.g., by American tourists). You should check with your prepaid card company for information on whether or not your prepaid card can be used outside the U.S. and, if so, what fees and limitations apply.
What Should You Do With Your Prepaid Card Before Leaving the Country?
You should check to see whether or not your prepaid card can be used in your destination country. If not, you should consider alternatives, including spending or withdrawing the money on the prepaid card prior to leaving the U.S. or the card expiring. You may also want to stop any recurring transfers to or from the prepaid card that are no longer applicable. You should also confirm whether there are any overdraft features turned on for the prepaid card and turn them off to avoid potential overdraft fees. If needed, you may contact the prepaid card company to check the amount left on your card or receive card statements.
You should generally monitor your prepaid account and card transactions on a periodic basis to make sure that your card is not being used to make fraudulent charges. You should contact the prepaid card company immediately if you identify any charges to your card that you did not make or authorize.
What Should You Do if Your Prepaid Card is Stolen or Confiscated?
If the prepaid card is stolen or confiscated, you should immediately contact the prepaid card company to recover the funds on the prepaid cards.