This was because the operator had no way to bill calls in real time from another network. There is no compulsion on a prepaid mobile phone user to top up their balance. To maintain revenues, some operators have devised reward schemes designed to encourage frequent top-ups. For example, an operator may offer some free SMS to use next month if a user tops up by a certain amount this month.

They also are available at many locations, ready to use immediately and even disposable. Plus, you don’t have to worry about overdraft fees, since your spending cannot exceed the available balance on your card. It’s easy to get a Visa Prepaid card and there’s no credit check required. Phone selection remains a differentiator, too, though not as much as it used to be.

• You have to sign up for the plan with a credit card or checking account number, but you can cancel at any time.
• Plus, because the annual cost of phone plans steadily increases each year, you can find some major savings by switching to the right prepaid phone plan.
• In fact, according to the Bureau of Labor Statistics, the average person spent nearly $1,200 on their cellphone plan in 2018 and have seen consistent increases in cost.
• The ZEN Mastercard can hold 29 different currencies and be topped up instantly and safely with just a few taps.
• Just tap or swipe with merchants, add to mobile wallets, or make withdrawals.

Although contract plans still lack flexibility, they certainly suit larger households from an affordability perspective. Prepaid cards can be used to make purchases and pay bills, just like debit or credit cards. They are accepted nearly everywhere since they are often backed by a major card network, such as Visa, Mastercard or American Express. You can often find prepaid cards at checkout lanes when you’re at the supermarket, typically next to gift cards. Similar to a gift card, you add value to the prepaid card before you can use it, which is essentially like prepaying for future purchases.

Your CreditWise score is a good measure of your overall credit health, but it is not likely to be the same score used by creditors. The availability of the CreditWise tool depends on our ability to obtain your credit history from TransUnion. Find out what ACH stands for, what it can be used for, and the pros and cons of ACH transfer. Fees vary very widely, so it’s important to review the full details for any card you select before you start spending.

Many prepaid cards have a hefty foreign transaction fee which applies every time you spend or withdraw in a foreign currency, plus extra charges for using an ATM abroad. You can only spend the money you load on the card — which means no interest charges and bill to pay at the end of the month. In the early years, a prepaid mobile phone could only be used within the network of the operator from which the customer purchased the phone. It was not possible to roam onto other GSM networks when using the phone abroad.

Prepaid Cards

That makes it very important to check over the full range of costs you might pay when you transact. Depending on the type of prepaid card you have, you may not even need to carry the actual card around with you. Many prepaid cards, like the ZEN card, can be connected to digital wallets like Apple Pay or Google Pay. This means you can use them to make online purchases and contactless payments easily. As noted previously, prepaid plans don’t offer much in the way of perks.

Many or all of the products featured here are from our partners who compensate us. This influences which products we write about and where and how the product appears on a page. We believe everyone should be able to make financial decisions with confidence. Tom’s Guide is part of Future US Inc, an international media group and leading digital publisher. For example, you may need to register your card in order to get assistance from the card provider.

Prepaid cards work at any merchant that accepts its payment network, such as Visa or Mastercard. Next, let’s take a closer look at prepaid cell phone plans and how to go about finding the right one for your needs. Limited features — You probably won’t find the latest, most sophisticated features on the average cheap prepaid cell phone. It also won’t have Internet access or the ability to share videos. Virgin Mobile, for example, offers phones ranging from basic to those with mobile Web, camera with flash, audio and picture messaging, Bluetooth wireless and mobile instant messaging and e-mail. You’ll find that a prepaid cell phone works just like any other, although without a long-term commitment and some of the bells and whistles.

Talking more one month and less the next makes no difference, and leftover minutes roll over from one month to the next. Plus, if you want to change to a different type of plan, a prepaid phone gives you the freedom to switch whenever you want. Get your paycheck instantly loaded to a payroll card and enjoy a fast, convenient way to make purchases, pay bills and manage your money.

• Prepaid cards and debit cards are ways to spend money you already have.
• If you’ve been stung by overage fees in the past, prepaid phone plans are your best protective measure.
• The Galaxy S9, for example, is on sale at Boost, Cricket and MetroPCS (though there’s no option to buy in monthly installments).
• There are lots of different prepaid debit cards out there, which all offer different features and fees.
• With the ZEN Mastercard, for example, you can manage and monitor your balance through a mobile app.

Plans are typically two years long, and you choose from a variety of monthly plans that include different amounts of talk, text, and data. The cost of your phone hardware is usually built into your monthly bill even though many contract phone plans advertise new phones as being $0. Most prepaid debit cards are connected to a merchant like Mastercard or Visa. This means you can shop anywhere these cards are accepted, including online and in-stores. This makes them a convenient alternative for people who don’t want to use credit cards but want to enjoy the same ease of shopping.

Abundant Features

All you need to do is dial 011 + the country code + the city code + the phone number. For some countries — like Canada, Puerto Rico or Jamaica — you don’t even need to dial 011. Virgin Mobile charges the international per-minute rate for the country you’re calling plus your standard airtime rate.

Some prepaid debit cards also come with extra protection for customers, making them safer than cash payments. ZEN Mastercard users, for example, get ZEN Care Shopping Protection. This provides extra support in case something goes wrong with a purchase, like a cancelled flight or missing item. Most cellphone plans throttle data speed after a certain usage amount. For example, AT&T sometimes reduces data speed for different unlimited data plans when customers use more than 22GB or 50GB in one billing period. If you use your limits, your service stops until your next payment or until you buy additional usage.

How to Cash a Check (And Save on Fees)

That makes it a top pick with travelers and anyone entity relationship diagram who shops with international retailers online.

Which fees are charged for prepaid cards?

Powers’ 2007 survey of wireless prepaid customer satisfaction. Gallup also points out that prepaid carriers also tend to offer better deals on older phones, which can be appealing if you don’t need the latest and greatest models. Take the Galaxy S8, which costs $349 and $449 at Cricket and Boost, respectively, thanks to current promotions.

Some prepaid phone cards are reloadable, others are disposable, and they often carry specific dialing instructions and sometimes additional fees for usage. These cards can only be used with prepaid phones if the phone has available minutes for the call. When using a prepaid phone card, you will be using your prepaid minutes from your no-contract phone plan, as well as the time that’s loaded onto the calling card. While prepaid cards have similar uses to credit cards and debit cards, they are not the same. Here are the main differences between prepaid cards, debit cards, and credit cards.

Additionally, they are popular with parents who wish to have a way to stay connected with their college age students and have some control over the costs. Prepaid cards are usually purchased from banks, retailers, credit card companies, and other financial service providers. Some prepaid cards come with a pre-loaded amount (e.g. $50 or $100), while others carry no balance until they’re topped up with your desired amount.