Prepaid Cards

If you want to pay with plastic, but don’t want a debit or credit card, a prepaid bank card might be the right option. There are many different cards out there, and they can be particularly useful for young people and holidaymakers.

What Are They?

• A prepaid card is like a pay-as-you-go mobile phone – you top it up with money in advance.

• You use it like any other payment card, in shops or online.

• Most prepaid cards work at cash machines too.

• The difference is that the card isn’t linked to a bank account.

• You can only spend the money you put on it.

Are There Fees

• No two prepaid cards are the same when it comes to fees - check before you choose.

• The fees can include:

• top-up fees

• monthly fees

• application fees

• UK and overseas cash-machine withdrawal fees

• transaction fees

• inactivity fees

This Type Of Card Isn’t Protected

• The money put on your prepaid card is classified as electronic money, or e-money. This means it doesn’t get protection.

• This just means you need to be careful not to store lots of money on your card.

• Put just the amount you need on it for immediate spending, and keep the rest of your money in a bank account.