Helping the Unbanked Save Money
The first and most basic step to financial wealth is having a
checking or saving account. This sets the stage for future
endeavors, such as investing, homebuying, etc. Many people are
unable or locked out to do this due to past bank situations.
Some mistrust the financial institution and hide their money
around the house. Others use money orders or cash for method of
payment. This group of the population is often referred to as
the unbanked. There are thousands upon thousands of people in
the arena.
Some banks see this as a problem. These individual or families
are potential customers, which mean more accounts, which means
more money made by the institution. Suppose there are 10,000-
15,000 individuals in a city without checking accounts. At a
potential eight dollars per account, per month, can add up to a
hefty sum year after year. And depending on the profitability or
the bank this can be big business.
While the banks see the unbanked as a problem, the check cashing
and payday loan companies see it as a windfall. These operations
take advantage of an already bad situation making it worst,
charging outrageous fees. Bringing in the bucks. Many of these
companies are located in low income areas and prey heavily on
minorities.
One way a person can save on the fees from a check cashing
business or to help in his every day business transactions is
purchase a prepaid debit card. These cards can be used like a
credit card. One would load money on the card when needed. The
difference is when using your debit or prepaid card you are
using your own money. With a credit card you are using someone
else money, accruing interest and a bill. These cards have the
Visa and Mastercard logo and can be used anywhere these cards
are accepted nationwide or internationally.
A person without a checking or saving account, can have his
employer deposit money to the card, eliminating the need for a
check cashing, saving money. Not only will it save the employee,
it can save the employer money in check cost.
Another way a person can save money, is by transferring money to
others that have the same type card for a minimal fee. Many
minorities send money home weekly to families. With the minimal
transfer fee, more money can be sent home for the family. Some
cards charge as little as $2.45 per transfer.
The prepaid debit card can be gotten at a bank, but how can you
get it at a bank it you can't get a checking or a saving
account. Many consumers are locked out when it comes to ordering
online, from TV, or some other businesses. Many businesses only
accept credit or debit cards. The prepaid card can be gotten
online with a check or money order .
The prepaid card can also be used for people who have checking
or savings accounts. Most bank debit card is attached to a
saving or checking account, leaving the account holder open to
fraud. An unknown person can get the account number and withdraw
funds without your knowledge. Having a prepaid or debit card can
eliminates this threat. With the prepaid or debit card, only the
amount of money on the card is subject to loss. This card can
also help one stay on a budget and lower credit card debt.
Parents, this card is great for college students. With two cards
you can keep an eye on how your child is spending the cash you
are sending via transfer to put on the card for college
expenses. There is an online statement of all transactions. Or
you can make a call to get it.
What a great way to save money and but this on the card for
vacation. Add to the card little by little or save and add at
one time. Keep saving the pennies, nickels and dimes. They will
pay in a great vacation. Make your hotel and rental car
reservations.
Not only can this card but used for the above situations, they
also can be used for the following: customers with bankruptcies,
county court judgments, defaults, a low credit score, are
unemployed, payment privacy and income support or benefit. Not
only do this cards help save money, some also give a person a
chance to earn money in their own business.
www.directpaycash.com/go/visabiz4us or www.visabiz4us.com