2. The host of a personal-finance podcast says that debit cards and prepaid cards are...
80.2K
Verified Solution
Link Copied!
Question
Finance
2. The host of a personal-finance podcast says that debit cards and prepaid cards are basically the same. Unlike credit cards, neither debit card nor prepaid cards let you spend more money than you actually have, so you don't have to pay high rates of interest. Also, neither debit nor prepaid cards charges an annual fee, but some credit cards do. Based on what we have discussed in class, you a. disagree. Prepaid cards can be converted to full-blown credit cards at any time, so people with self-control problems should use debit cards instead. b. disagree. Using debit cards can lead to fees for overdrafts or non-sufficient funds, but these never occur with prepaid cards. c. agree. If you have limited income or a low credit score, credit card interest rates and late fees make it much better to switch to either a debit card or prepaid card; any difference between the latter two is academic d. disagree. Prepaid cards face higher interchange fees than debit cards because prepaid cards are a greater risk to the merchant, so you are more likely to get a discount from your merchant for using a debit card
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
