Prepaid Credit Cards
Prepaid Credit Cards
Here is a list of Frequently Asked Questions about Prepaid Credit Cards.
What Is A Prepaid Credit Card?
A Prepaid card is exactly the same as a credit card except that you pay the money before you spend it rather than afterwards. There is no credit on the card: the money you spend with the card is the money that you have already put onto it. When the money has run out will be unable to use the credit card.
Example Of Prepaid Credit Card
Here is an example of how a Prepaid credit card works:
You wish to spend £500 over the next month and so you add £500 to the balance of your Prepaid credit card. You are now able to spend the £500 as you wish. Once the £500 has been spent, you will no longer be able to use the Prepaid credit card until you have added more money to it.
How Much Does A Prepaid Credit Card Cost?
There are a large number of Prepaid credit card providers and most of them charge an application fee of around £10.00. However, some are free.
What Are The Monthly Fees For A Prepaid Credit Card?
There are usually no monthly fees or charges for a Prepaid credit card.
What Other Charges Are Associated With A Prepaid Card?
Charges may apply if you top up your Prepaid credit card, and these vary according to the card provider and where the top lot was made. For example, just like credit cards, and there is a charge levied when A Prepaid credit card is topped up at an ATM the machine. However, many providers do not charge when a card is topped up online or at a bank counter.
Some card providers also charge a percentage or fixed amount of the transaction.This varies from a standard rate of £1.00 to 3%+ of the track transaction amount.
Can I Top Up A Prepaid Credit Card?
Subject to the status of your account, you will be able to reuse your Prepaid credit card indefinitely by topping up when the balance has run out.
How Do I Top Up My Prepaid Credit Card?
You can top up your Prepaid credit card in a variety of ways:
- High street bank
- Post Office
Prepaid credit cards provide you with the flexibility of paying a pre-agreed amount on to your card every month through direct debit, or paying a proportion of your wages directly on to your card.
Like traditional credit cards, you enjoy full purchasing protection with Visa and Mastercard in the event of supplier default or fraud.