What is considered to be a prepaid card?
-Prepaid cards are topped up with money, which is what makes them different to debit or credit cards. They are also an alternative to carrying cash. And an alternative to bank accounts, as you can do most things with prepaid cards that you would expect to do with your regular current account.
Technically, prepaid cards fall under electronic money (or 'e-money'). E-money is cash stored electronically on a device that can make payments. These devices can include currency cards, digital current accounts, financial apps and wallets (with a linked prepaid or payment card). Payment providers and e-money accounts, including most prepaid card accounts, are not covered by the Financial Services Compensation Scheme (FSCS).
Do you need a credit check for a prepaid card?
+No, there are no credit checks and you don't have to worry about your credit score. As you need to top up your card to spend on it and have no overdraft facility, it can be a helpful way to stop you from overspending. We explain more about these and other reasons why you may want to consider a prepaid card in the article: Your Guide to Prepaid Cards under the section "Why get a prepaid card?".
Are prepaid cards accepted everywhere?
+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 and can be a safer alternative to carrying cash when travelling.
How much money can you put on a prepaid card UK?
+This can vary from a few hundred pounds to several thousand pounds. Each prepaid card provider will have a different limits and restrictions, sometimes limits depend on identification validation. Normally you can find the details on limits and restrictions in the terms and conditions, or by logging in to your prepaid account.
Can you use a prepaid card online?
+Yes, a prepaid card can be used online like most credit or debit cards. Additionally, prepaid cards should be accepted for online payments on websites that accept Visa and/or Mastercard.
Can I withdraw money from a prepaid card?
+Yes, you can withdraw money at a cash machine, although fees may be charged. As an alternative, most prepaid cards will have an account you can log into where you can manage the card and access your money. Usually, you will be able to transfer your money via bank transfer - again fees may apply.
What happens if my card gets lost or is stolen?
+Either you'll need to contact the provider or you can to login to your prepaid card account to freeze the card. Be sure to inform your card provider and get your card blocked as soon as you know your card has gone missing. If you fail to take action immediately, you may not be able to claim the money lost due to unauthorised use.