What is a Prepaid Card?
A prepaid card is a payment method meaning ‘pay in advance’. It allows you to put a monetary value in a pooled account linked to your card, not on the card itself; a bit like a traveller’s cheque. The traveller’s cash card can be used as a safe, convenient alternative to paper cheques and cash, and is not linked to any of your other accounts.
Prepaid cards or Prepay Credit cards are becoming increasingly available; offering a secure and convenient way to transfer or share money, spend abroad, shop online, receive wages and simply use for day to day spending. They are a great option if you are unable to get credit or a bank account, because you’ll get all the versatility of a debit or credit card regardless of your credit rating. Prepaid cards are used and accepted just like credit and debit cards, except you ‘pre-load’ the card with funds. The cards can be loaded by a variety of methods and does differ by card (check our Prepaid Calculator table to view top-up types.) Generally you can load with cash at EG Post Office or Paypoints; and sometimes at a bank itself. Other methods include having your wages paid onto the card, via a bank transfer or even by post!
Prepaid cards can be described as reloadable debit cards. Available in either Visa or MasterCard, prepaid cards are often used to purchase items and services or withdraw cash from ATM machines. These reloadable debit cards are often used as an alternative to cash when shopping. Although pre paid cards act similar to a debit card, they are often referred to as prepaid credit cards.
