his one is for those who are wary of falling into the credit card trap, or are afraid of credit card scams. Visa member banks are using prepaid credit cards as a new way to attract customers. Prepaid - or gift - cards can be bought over the counter by paying cash or cheque for the amount loaded. The card can be used like any other plastic money in merchant locations that accept Visa cards and generally have a validity period of two years.

Some of the banks which offer prepaid cards are HDFC, IDBI, Kotak Mahindra and Oriental Bank of Commerce. Unlike credit cards (where the card limit set by the bank sometimes seems much higher than one's repayment potential) and debit cards (where one needs to have an account relationship with the bank), prepaid card subscribers need not have a bank account. According to Chitra Pandeya, head, retail liabilities, HDFC Bank, "Cardholders decide the load amount and hence discipline their expenses. Along with this, it also allows better management of funds, more freedom of usage and better tracking."... more