Should I get a Visa or a MasterCard prepaid card?
-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.
Where can I use my prepaid card?
+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.
Can I go overdrawn on a prepaid card?
+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.
Are prepaid cards protected by Section 75 of the Consumer Credit Act?
+No, as prepaid cards aren’t credit cards they are not protected by Section 75 of the Consumer Credit Act. Credit card purchases over £100 are covered by the Consumer Credit Act. This means that for larger purchases it may be a good idea use a credit cards for this additional protection.
Are prepaid card accounts also mobile bank accounts?
+Not always, the two terms can be used interchangeably; many online bank accounts and prepaid card accounts are classed as e-money. E-money is money stored in an electronic form that can be used to make payments. You can get prepaid cards with sort code and account numbers; most will function similarly to a basic account. E-Money is not protected by the Financial Services Compensation Scheme (FSCS) as most typical high street bank accounts are - see "Are prepaid cards protected by Section 75 of the Consumer Credit Act?
How do I top up my prepaid card?
+You will be able to top up your card by logging into your account on your provider's website or by using their mobile app. You will likely be able to load your card using one or more of the following methods:
- Bank transfers
- Wages and salaries loaded directly your card
- Top-ups using your debit card or credit card
- Cash top-ups (usually at PayPoint locations and Post Offices)
It's important to note that fees will apply with some top-up methods, for example, cash top-ups at Paypoint or post Office locations. Bank transfers normally have no cost.
Are there restrictions and limits to how much I can put on my prepaid card?
+Most likely, limits and restrictions can apply to:
- Top-ups
- Balance (at any given time or over a period of time)
- Withdrawals (these can be capped by amount and frequency)
- Number of additional cards on one account
- Minimum age requirements
- Spending restrictions (these can be capped by amount and on a daily, monthly or yearly basis)
Normally, you can find all limits and restrictions listed in the Terms and Conditions.