Frequently Asked Questions

As prepaid cards are chip and PIN protected, just like most debit or credit cards. Prepaid cards are not linked directly to your bank account, so if your details are compromised while shopping online or abroad, it will be less likely someone will have access to your bank account funds. However, the money in you prepaid account may be accessed, so you should always protect your card details and never share your PIN with anyone.

Some prepaid card accounts come with an app that allows you to freeze or block your card. Prepaid cards are not protected by Section 75 of the Consumer Credit Act. However, depending on your provider, you may also be allowed a payment reversal (chargeback) when purchasing using your prepaid card. Your card provider is not legally required to provide this service.

Payment providers and e-money accounts, including most prepaid card accounts, are not covered by the Financial Services Compensation Scheme (FSCS).

No. Prepaid cards don't offer credit or overdraft facilities. As a result, prepaid card applications will not impact your credit score and will not show on your credit report. Some providers may have some form of credit or lending; however, these usually are add-ons in an app or provided by a third party. Applying for these additional services, if available, will likely affect your credit score.

As prepaid cards don’t have an overdraft facility, you cannot go overdrawn. If you try and spend more than your balance, the transaction will usually be rejected. So it may be helpful to regularly check your current balance on the card’s app, especially before spending.

Prepaid cards are increasingly popular cards for travel with holiday makers, as an alternative to cash or travellers cheques. They are generally accepted anywhere that accepts Visa or MasterCard (depending on your card), and you can also draw cash out at cash machines abroad, giving you a lot of flexibility. However, there may be charges when using your card abroad, particularly when withdrawing cash.

Prepaid travel card accounts are specifically used for travel purposes allowing you to spend in other currencies (sometimes called currency cards). They usually offer competitive exchange rates and some don't charge foreign exchange fees. Not every currency will be available on prepaid travel cards, so make sure you do your research before applying for a prepaid card for use abroad, and always check fee costs.

As Visa and MasterCard offer pretty much the same levels of transaction security and accessibility, with both being accepted virtually everywhere. You may want to focus on choosing a card with benefits or features that are important to you, rather than whether it is Visa or MasterCard.

As most prepaid cards are either Visa or MasterCard, you can use them just about anywhere that accepts Visa or MasterCard transactions, online or in-store. You can also use your card to withdraw money from cash machines (be sure to check the card fees before doing this). They can also be used overseas, thus a safer alternative to carrying cash when travelling.

As prepaid cards don’t have an overdraft facility, you cannot go overdrawn. If you try and spend more than your balance, the transaction will usually be rejected, which can cause embarrassment at the till. Always check your current balance on the card’s app before spending.