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What are the advantages and disadvantages of using a prepaid card?
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Advantages of using a prepaid card include convenience, cost savings, and flexibility. Convenience is achieved by not having to carry around large amounts of cash or worry about running out of funds before your next paycheck arrives. Cost savings come from paying for services with a pre-set amount that can’t be exceeded without incurring additional fees. Flexibility is gained through the ability to add money onto the card as needed.Disadvantages of using a prepaid card include limited access to certain services, such as ATMs and debit cards, higher transaction fees, and restrictions on where and when you can use it. Additionally, some prepaid cards have expiration dates, which means if you don’t use them in time, they will no longer work.