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Prepaid Credit Cards

davelfc Avatar
8y, 10m agoPosted 8 years, 10 months ago
Some of you might already know about these, many of you won't.

Lot's of card companies now offer you prepaid credit cards. A prepaid credit card is a payment card (usually MasterCard, Maestro, Visa Electron or Amex), pre-loaded with your own money. You dont need a credit check to get one, and it's accepted at the same locations as a normal debit or credit card, including on the internet and abroad.

Most will charge you a one off payment of roughly £10 to buy the card. It arrives and you get your pin. Register the card (online) and now you can view your balance and pending transactions any time of the day or night.

Putting credit on the card is easy, direct debit, bank transfer or Post Office. Some cards will charge for putting credit on the card, post office credit is free for most cards. You simply hand over the cash and the card. The following day the credit is there for you to spend.

All card issuers charge for transactions, usually £1 each time. Cashplus for instance offer two deals. £1 per transaction or £4.95 a month for as many transactions as you like.

The benefits are many. There's no credit check, this isnt credit so bankrupt or on an IVA you can have one of these with no problems. You cannot get into debt; you only spend what you have. You can get the card from the age of 16 and I've already got two of my kids one and I hope it will teach them the value of spending only what they have. You could put credit on one and keep it in the car for an emergency. You can use it abroad, online or anywhere safe in the knowledge that all a potential thief can steal is what you have credited on the card.

You're not limited to one person on a card either. For around £10 you can add another person, the balance is available to the other card holder and you can add as many people as you wish. This can be a much cheaper way of doing international money transfers. Add a card to your pre-paid account, which may be sent to a family member or friend who lives overseas. The card can then be re-loaded with cash in the UK, and then funds can be withdrawn instantly abroad, in the local currency.

Most have a limit of £5000 that you can put on the card, you can have wages and other money paid into the card just like a bank account. I use one for my paypal account and credit it the day before I want to buy something so I know only that amount will go.

Drawbacks. Obviously the charges, each transaction brings a £1 charge on most cards. Although I go for the £4.95 monthly charge on cashplus as I use my card for paypal and online a lot. Hiring a car is possible but you really need to use your card in a sensible way for a while before they will lift the restriction on hiring cars and then you're fine. Having to top up the card can be a pain but you really only need to wait 1 day for the credit to be available on your card.

Have a look for yourself, there are many to choose from and you are bound to find one that suits you. The main complaint from people is that there are charges, well yes there are but there are charges for most other things too. If you use a credit card and keep it in credit then that is better. But most of us can't resist spending on them and this is a better alternative for you if you're likely to spend more than you should. Some people dont qualify for a credit card or just dont want one. This might suit you. Sure you can use a debit card for a lot of transactions but do you really want a potential fraudster to have access to your bank account? Seriously for £10 this could be the answer for some people. I hope someone finds this useful. Ive provided some links below, shop around and pick the card that suits you the best.

http://www.mycashplus.co.uk/faq/default.aspx

http://www.which-prepaid-card.co.uk
davelfc Avatar
8y, 10m agoPosted 8 years, 10 months ago
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#1
The Post Office do something like this - in sterling, dollars or euros. You pay a one-off fee for the card, then you can use it as a credit card.

I got one in dollars for our holiday last year to Jamaica, we used it everywhere with no problems at all. If I remember correctly, there was no charge for each transaction, just the original fee to pay.

The best thing about the card is that if I lose it I don't lose any money - & I get a replacement card. The only down side is that the replacement card gets sent to my registered address, & if I want it to go to, for instance, my hotel, then I have to pay extra.

Well worth thinking about if you're going on holiday & worried about your credit cards:thumbsup:
#2
Another disadvantage is that you won't be covered for purchases in the same way as a 'proper' credit card would.

For example, if I bought an item worth £150 and it went wrong, the issuer of my 'proper' card would be held jointly responsible for my purchase.
#3
thesaint
Another disadvantage is that you won't be covered for purchases in the same way as a 'proper' credit card would.

For example, if I bought an item worth £150 and it went wrong, the issuer of my 'proper' card would be held jointly responsible for my purchase.



Three cards DO offer this protection (all one issuer 'Mastercard') I've put a link to those that do. But you are correct the others do not. I forgot this as my cashplus card does offer this protection.Thanks

http://www.which-prepaid-card.co.uk/features/prepaid-protection.html

Here's the blurb

One of the most important parts of the Consumer Credit Act (CCA) is one that few people are fully aware. Section 75 of the Act means that when you buy something using your credit card, your contract is with both the merchant (retailer) and the company that issues your card. They both have an equal liability if anything goes wrong so you can take action against either of them to get compensation. This is restricted to goods or services purchased for more than £100, but is extremely beneficial if something should go wrong with your transaction e.g. the retailer goes bankrupt!

The CCA covers everyone with a credit card, but given that prepaid cards do not fall under the CCA, as the bank is not lending money, you are not covered.

Only one prepaid card issuer in the UK voluntarily offers consumers this valuable protection, so make sure you consider this when selecting a prepaid card appropriate for your needs. If you only intend getting a pre-paid credit card for cheap international money transfer then this may not be important to you. However, if you intend using the card to purchase goods or services on the high street and internet, this could be valuable prepaid protection
#4
davelfc thanks m8 this is exactly what i needed, i made a post about this the other day and i was told only a '' real '' credit card offered me the above protection
#5
Great post! Handy if you need to open another E**y account :thumbsup:
#6
that seems like a bit of a rip off, I use an egg money credit card which I pay money onto each month before I spend on it, I then got 5% (ish can't remember exactly) interest on any balance in credit on there and they don't charge me each time I use it!

Did I miss something ?

If you loose your card seems to be the main plus point but there is a 24hr number to call if you loose a real credit card & they cancel it anyway.

maybe it coule be useful for [email protected] ect, maybe?

worto.
#7
Thank you for this.Perfect for my holiday, we usually cary lots of cash about this ahould be less worrying. Can you pay for a room abroad with this?
#8
worto03
that seems like a bit of a rip off, I use an egg money credit card which I pay money onto each month before I spend on it, I then got 5% (ish can't remember exactly) interest on any balance in credit on there and they don't charge me each time I use it!

Did I miss something ?



worto.


No you missed nothing, it's a choice. Some people don't have your choice. They maybe don't earn enough to manage a credit card, they could have CCJ's an IVA or be bankrupt. They could just be pretty awful with credit or maybe just too young.

These are some of the people that these cards are aimed at. I made a point at the end that if you have a credit card and put cash on that then that is better but you're surely in the minority if you do that.

I hope you understand a little better now?
#9
irkapirka
Thank you for this.Perfect for my holiday, we usually cary lots of cash about this ahould be less worrying. Can you pay for a room abroad with this?



I have booked using my card and used it to pay for a hotel but be careful. If you intend to use your card to pay for a hotel at the end of your trip, the hotel will swipe it when you arrive. They will put a block on a sum of money on your card, usually the whole stay and a little extra.

When you check out they they will remove the block and make the charge (this could take a day or two.) This shouldn't bother you if you intended to use the money for that anyway but is worth noting in case you should check your balance while away and think you've been robbed.

Here's more info on blocking, this is a usa site but the principle is the same.
http://www.ftc.gov/bcp/conline/pubs/credit/credbloc.shtm
#10
No you missed nothing, it's a choice. Some people don't have your choice. They maybe don't earn enough to manage a credit card, they could have CCJ's an IVA or be bankrupt. They could just be pretty awful with credit or maybe just too young.

These are some of the people that these cards are aimed at. I made a point at the end that if you have a credit card and put cash on that then that is better but you're surely in the minority if you do that.

I hope you understand a little better now?


yeah no probs I can see that side of it - It's just a shame people they think are worse off and can't afford a CC have to pay more again! It's like when my GF needed a loan and the bank would only offer her 21% I got the same loan from the same bank in my name for 6% once you get yourself in trouble they really do like to keep you there don't they! It would have taken my GF 9 years to pay it off at 21%!

worto.
#11
worto03
yeah no probs I can see that side of it - It's just a shame people they think are worse off and can't afford a CC have to pay more again! It's like when my GF needed a loan and the bank would only offer her 21% I got the same loan from the same bank in my name for 6% once you get yourself in trouble they really do like to keep you there don't they! It would have taken my GF 9 years to pay it off at 21%!

worto.


Someone is paying for your credit card, you can be sure of that. Each and every person that does not clear their credit each month is paying through the nose.

At least using this you can avoid the credit trap, control your spending and personally I hope set my kids off on a credit free life. (well as credit free as their life can be)

You seem to have a good handle on your credit card, if every single person did that there would be no credit cards at all, they'd go bankrupt.
#12
Why not get a card that pays you for spending and clear your account each month?
I never pay interest on any card I always pay them off and at the end of the year something extra to help pay for Christmas. To my mind you paying in advance pays for me to have a months interest free credit and get a bonus on top
#13
tonyd19565
Why not get a card that pays you for spending and clear your account each month?
I never pay interest on any card I always pay them off and at the end of the year something extra to help pay for Christmas. To my mind you paying in advance pays for me to have a months interest free credit and get a bonus on top


I think I've covered this in previous posts. Congratulations for having such a good control of your finances.
#14
cis_groupie
The Post Office do something like this - in sterling, dollars or euros. You pay a one-off fee for the card, then you can use it as a credit card.

I got one in dollars for our holiday last year to Jamaica, we used it everywhere with no problems at all. If I remember correctly, there was no charge for each transaction, just the original fee to pay.

The best thing about the card is that if I lose it I don't lose any money - & I get a replacement card. The only down side is that the replacement card gets sent to my registered address, & if I want it to go to, for instance, my hotel, then I have to pay extra.

Well worth thinking about if you're going on holiday & worried about your credit cards:thumbsup:


Here is more info on them.

http://www.postoffice.co.uk/portal/po/jump1?catId=19300207&mediaId=26800661
banned#16
Excuse my ignorance but isnt this just a debit card in disguise but with lots of extortionate fees?
#17
applied for post office travel card online, gave all details and passport number paid in £300 to set it up,

i then got an email to say they couldn't do it so i rang them up and they claimed they weren't happy about my identity checks.
i am a uk passport holder have uk birth and marriage certificates, uk driving licence, i am on the electoral register and best of all worked for post office counters for 5 years.

now the ***** have got my £300 and it could take up to 14 days to get it back.

Asked my bank if they could see any problems and they thought the post office were totally out of order.
so i got a money card from a bank instead, no problems and better exchange rates.

if this is the best the post office can do i would avoid, if they mess up so easily i would hate to be on holiday and experience any problems and have to rely on them to sort it out.
they're about as much use as a chocolate teapot.

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