What is a Prepaid Mastercard?
Information on prepaid MasterCards - where they can be obtained, how they can be used, and the benefits of using one at home and abroad.
Prepaid cards are a great way of managing spending which encourages successful budgeting and helps prevent a card holder from getting into debt.
These cards can be bought for a small fee of £5-£10 and then the customer can preload the card with the money they wish to spend in a particular time frame onto it.
Prepaid cards are typically used as an alternative to credit cards as people can only use what they have loaded onto the card, or for taking money abroad in a travel money card.
A prepaid MasterCard is a type of prepaid card and if this is the provider you opt for you should be able to use it at outlets or ATM’s that accept regular MasterCards.
Prepaid MasterCard can be used at more than 25 million locations worldwide making them an easy alternative to a credit card if you are unable to obtain one due to low credit rating.
While some banks do sell the prepaid cards, you are not required to purchase one from your bank account provider as the card is not linked to it.
Instead, like any money transfer, either by cash, cheque or online, the money can be deposited for use usually within three days of deposit.
Benefits of using one abroad is so the user can load funds onto the card in a particular currency which can be bought at a favourable exchange rate with no extra charges when using the card to make individual purchases.
Furthermore, a prepaid card abroad can be a safer way of carrying money around as they are fitted with an anti-fraud device like a normal credit or debit card so the card can be cancelled if it falls into the wrong hands.