We will first try to make clear what a flow card actually is. With a debit card it does not mean that you actually have a payment card. For example, you can also have a sort of online account that you can use to pay securely. Take PayPal as an example. This is one of the best known providers of online accounts. You create an account that you link to your own account. Once you have done this, you can transfer money to your Paypal account through your account. You can determine yourself in which rate you want to show your balance, useful for online payments at web shops. With this account you can order and pay for products at almost all web shops. The difference with a credit card is that you can only pay the amount that is actually in your account. You will probably wonder why you don’t just pay with a credit card. Paying via PayPal is very safe. It is used by millions of people and is also accepted as payment by millions of web shops. When you have purchased a product through a foreign webshop and the item is not delivered, you can reclaim your money via PayPal. Since you yourself determine how much you have in your PayPal account, no more than that amount can be collected in the event that your account is hacked.
Benefits Prepaid Credit card (debit card)
As we have already mentioned above, the debit card is a safe method of payment. Nowadays everything can be hacked and no payment method is 100% watertight. By using a debit card you can determine how much balance you want to deposit on your debit card. You cannot lose more than what is on your debit card. Moreover, a debit card can often be easily linked to an account number. This makes it easy to quickly transfer some money to your debit card. The reversal can be done just as quickly. There are no costs associated with depositing money on a debit card and applying for / opening a debit card is usually also free. The only thing is that a fee often has to be paid for payments, usually close to € 1, but this also applies to a credit card.
Disadvantages Predpaid credit card (debit card)
So far a flow card sounds pretty good! As we have said before, a prepaid credit card does not exist. The purpose of a credit card is usually that you have extra money in case of an emergency. For example, with a debit card you cannot withdraw money abroad. A debit card can also not be used as collateral. The only thing a debit card can be used for is for online payments. If you only use a credit card for online payments, the debit card can be a good alternative. However, the debit card will never become a formidable competitor and / or replacement of the credit card, because the main reason why people purchase a credit card is lost.
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