Rounding it up
Prepaid cards are perfect for gamers. They help gamers manage their finances and control their spending in ways traditional credit and debit cards can’t.
With prepaid credit cards, gamers have the peace of mind that their personal information will be protected and their money will be secure.
KOHO users can start building their credit when they use a prepaid credit card.
Any gamer will tell you that, regardless of what games you play or how you choose to play them, the hobby can be quite expensive. From the initial costs of the hardware investment and game purchases to the many add-ons needed to enhance the gaming experience and, literally, “up your game,” gaming can become a super expensive pastime.
Regardless of whether you’re a casual gamer or looking to turn your hobby into a career, using a prepaid card, also known as a stored-value card, can help you keep your finances in check while pursuing your passion. Prepaid cards work differently than traditional debit or credit cards because they’re loaded with a certain amount of money and the balance decreases every time you use it to buy something. Some prepaid cards even offer cash back incentives to sweeten the deal.
Here are four reasons why you should be using prepaid cards for your online gaming purchases:
1. Prepaid cards help lower your risk of overspending
Prepaid cards are a great payment option for gamers because they allow you to control spending and reduce the risks associated with overspending, particularly when using credit. Because prepaid cards limit a user’s spending to no more than the card balance, many consumers prefer to use them as a tool to help them make better spending decisions.
Gamers need to stick to a budget to properly manage their money, just like everyone else. With a prepaid credit card from KOHO, you have complete control over how much money you put on your card. It also allows you to easily manage how much you spend on your gaming hobby. By loading your card with a predetermined amount of money, you can easily set important boundaries for yourself.
When you combine a reloadable KOHO prepaid spending card with the KOHO app, you’ll also have access to tools that will help you to better manage your money and stay within your budget.
2. Prepaid cards are easy to use and reload
Perhaps you’ve avoided prepaid cards in the past because the last thing you want to do is waste your time trying to figure out how to reload them.
Thankfully, KOHO’s prepaid credit cards are not only easy to load, they’re ready for you to use when you need them most.
KOHO offers three different funding options for its prepaid cards:
e-Transfers: e-Transfers allow you to transfer funds from a connected bank account.
Debit transfers: Debit transfers allow you to transfer funds using a connected credit debit card.
Direct deposits: Direct deposits allow you to directly deposit a portion of your paycheque.
Although the funding may be different with prepaid cards, they work just like other major brand credit and debit cards and they’re accepted by merchants worldwide.
3. Prepaid cards offer a lower security risk.
Prepaid cards are a safe and secure alternative way to pay for gamers. Because so many transactions related to the gaming hobby occur online, some gamers are wary of using their credit or debit cards for purchases, citing privacy and security concerns.
There is a good reason for that. In 2021, financial services digital fraud attempts were on the rise in Canada.
Prepaid cards offer a level of anonymity and protection for personally identifiable information, which makes them the perfect alternative payment method for gamers who make online transactions. Additionally, KOHO partners with Peoples Trust, a federally regulated financial institution, to hold any funds that you load onto your KOHO account, ensuring the utmost security for KOHO customers.
4. You can start building your credit with a prepaid credit card.
When you use a KOHO prepaid credit card, you can also build your credit and improve your credit score at the same time when you sign up for KOHO Credit Building. It offers an affordable way to build your credit score by using the KOHO app and your prepaid credit card.
If you have a fully verified KOHO account and at least a $10 balance, you can begin using the unique credit building service. For a $10 a month fee, over the course of a six-month period, KOHO issues users a no-fee and no-interest line of credit dedicated exclusively to building credit.
The line of credit is separate from your available balance and is not meant to be spent; it’s specifically designed to build your credit. Each month, KOHO will deduct a portion of the funds and report the activity to the major credit bureaus. KOHO will repeat this process for six months and the activity will positively impact your credit score.
It’s an especially great tool for young adult gamers because it’s never too early to start learning how to properly build your credit.
How to make the most of gaming purchases
As a gamer, you know how expensive the hobby can be. So, it helps to make smart decisions about your gaming purchases to save some money.
Here are a few ways to save on gaming purchases and make your money go further:
Wait for the release date to pass
Games are most expensive when they’re first released. By waiting for a few weeks to pass after the game's official release date, you can usually purchase it for a significantly lower price.
Buy a used copy
Used bins are a great place to find a deal. Check online marketplaces or your local brick-and-mortar video game stores for used games. Buying used games is an excellent way to save money, and that savings can add up over time.
Look for deals
Patience is a virtue, and waiting for your favorite title to go on sale will save you money in the long run. Many gaming marketplaces, whether they’re digital or brick and mortar, have regular sales. Be vigilant, and you'll be able to maximize your spending power.
Look for Bundles
Many publishers offer premium bundles at the launch of a game. Purchasing a bundle will cost you more, but if you're eventually going to buy the items anyway, you might as well save money now by purchasing them as a bundle.
Sign up for gamer subscription programs
If you tend to purchase a lot of games, special gamer programs from your favourite retailers can help you save money while building up your stockpile. These programs cost money but are worth it for the serious gamer. For example, PlayStation Plus and Xbox Live Gold offer annual subscriptions that give you a handful of free games each month.
Sell your old games
We've all been there. You purchase the games you know you're going to play for a long time, but not all titles are forever. Once you've gotten tired of a particular game, completed it, or moved on to something else, consider selling it to recoup some of your money.
No matter what type of gamer you are, a prepaid card is an easy way to increase the security and safety of your purchases along with some cash back rewards. Take time to find a card that’s right for you.
Ben is a freelance writer and law student at Indiana University Maurer School of Law. He previously worked in various marketing positions before launching his own content writing agency.