Are prepaid cards safer than cash and debit and credit cards?
If your card is lost or stolen the provider will be able to cancel the card, and most prepaid card providers will also transfer any funds you have on the card to a new one – making it much safer than cash – although there may be a small charge for this service. Like debit and credit cards, to be able to use a prepaid card you need the card and the PIN number. Prepaid cards are safer than debit or credit cards as they are not linked to your bank account or credit card limit so the amount of money you can lose to fraud is limited to the amount of money loaded onto your prepaid card. However, with a debit or credit card, if the card is still in your possession and you are the victim of fraud you will get 100 per cent of any losses back. If you lose your debit or credit card or it’s stolen the most you can be liable for is £50 and this is normally waived. With most prepaid cards you also don’t get Section 75 protection (S.75), like you do with credit cards and some debit cards. When you bu
