Prepaid MasterCard

A Prepaid Mastercard is a card that is used for all of the things you would typically pay for with cash. Mastercard Incorporated which is stylized as ‘MasterCard’ from 1979 to 2016 and ‘Mastercard’ from 2016, is an American multinational financial services corporation which has its headquarter in the Mastercard International Global Headquarters in Purchase, New York, United States.

Its Global Operations Headquarters is located in O’Fallon, Missouri, the United States, which is a municipality of St. Charles County, Missouri. Its principal business is to process payments between the banks of merchants and the card-issuing banks or credit unions of the purchasers who use the ‘Mastercard’ brand debit, credit and prepaid cards to make purchases worldwide.

Throughout the world, Mastercard has been a publicly-traded company since 2006. Before its initial public offering, across the globe, Mastercard was a cooperative owned by the more than 25,000 financial institutions that issue its branded cards.

Mastercard, which is known initially as ‘Interbank’ from 1966 to 1969 and ‘Master Charge’ from 1969 to 1979, was created by an alliance of several regional bankcard associations and it was for the response to the BankAmerica card issued by Bank of America, which later became the Visa virtual credit card issued by Visa Inc.

The uses of Prepaid Mastercard

You can use a Prepaid Mastercard whether to shop, pay bills, or manage your expenditure more effectively; prepaid cards will give you a simple, effective, and more natural way to use and manage your money. You can do all the things that you would typically pay for with cash.

During a cardholder using his Prepaid Mastercard, the funds are routed from the cardholder’s bank, which is the Mastercard issuing bank account to the merchant’s bank account. The merchant then pays the issuer a fee on each transaction, which is known as the merchant discount. It can be said that for Mastercard, the majority of the company’s revenue is generated from the issuer.

How does this card work?

An account holder uses a Mastercard-branded card to purchase with a merchant. Once the transaction is authorized, then the issuer bank pays the cost of the transaction, which is less an interchange fee to the acquirer bank. After that, the account holder is then charged the cost of the transaction which is less a merchant discount.

Advantages of Prepaid Mastercard

• It doubles the original manufacturer’s or store brand warranty for up to one year and it is possible when you pay with your eligible Mastercard.
• If you want to find a lower price for a new item within 60 days from the date of purchase using your eligible Mastercard, you may be reimbursed for the price difference.
• It provides coverage for most items you purchase with your eligible Mastercard if the item is damaged or stolen within 90 days from the date of purchase.
• You can get assistance virtually anytime, anywhere and in any language with your card-related questions from Mastercard Global Services.
• Mastercard is the only payment brand in this world that provides its U.S. cardholders with services like at no extra cost, to help you detect and resolve identity theft.
• You need to pay only for purchases that you have authorized on your Mastercard. Unauthorized purchases are not your responsibility. Conditions and exceptions apply.
• Mastercard makes your air travel less stressful by providing members access to over 600 airport lounges in over 100 countries and it is with Priority Pass.
• You can enjoy exclusive, personal assistance with dinner reservations, event tickets, locating hard-to-find items, buying and delivering gifts, and coordinating business-related arrangements by your Mastercard
• Pays for covered damages which are physical damage and theft to a rental vehicle when your eligible Mastercard is used to initiate and pay for the entire rental transaction.
• It also offers Reimbursement for personal property stolen from your hotel or motel room. For that, your hotel or motel stay must be purchased entirely with an eligible Mastercard.
• It gives travel accident insurance by covering you and your family against accidental death or dismemberment if you purchase common carrier travel tickets with your eligible Mastercard.

Disadvantages of Prepaid Mastercard

• As we all know, Mastercard is a simple and easy way to pay for purchases. For that reason, the consumers can find themselves accumulating a large amount of debt rather quickly which Interest rates on credit cards can vary and some can charge an extremely high rate.
• Master Card is easy to rack up a bill. As a result, it can ruin your credit if you do not pay your bill on time. There is also a possibility of spending more than you have. We all know a credit card gives you the opportunity to spend more than you are making that result in getting you into debt which is hard to shift.
• Mastercard Credit cards have high-interest rates and it also has some of the highest interest rates of all personal finance products that include home loans and personal loans which can harm your credit file.