How Do Pre Pay Cards Work?
Prep pay cards are the simplest cards to own and use and the easiest to acquire.
What most providers do is charge around £10 for the purchase of the card and then once the customer has preloaded the card for the first time over a certain amount they are given the money back.
A pre pay card does not come attached to a specific bank account so the card will have its own account where money is transferred for use through the card.
The funds can be topped up either online from an existing debit or credit card or via your bank, at a post office or various specific outlet stores which advertise the ability to do so.
Once the account has been loaded the pre pay card can be used for purchases in high street stores, for online shopping, and for obtaining cash from ATMs and use abroad.
While there are different deals available, most will charge for loading up the card each month or for cash withdrawals, however, many offer discounts and bonuses and few charge for purchases made directly through the card.
A pre pay cash card also requires a pin for use so if stolen it is protected and for many it is a safer option to carrying cash for those who are vulnerable to theft or bag snatches.
One of the main benefits of a prepaid card is it prevents overspending, which easily happen on credit cards as the user cannot spend over the amount they preloaded onto the card.
The budgeting aspect of the card is furthered with an online management facility so you can see exactly where all your money has been spent.
Pre pay cards are easily obtained online or in high street shops and most people are eligible for the card even children as no credit history is required, only proof of identity.