Prepaid Cards UK

What is a Prepaid Card?

A prepaid card is an alternative for carrying cash.

It works similarly to a debit card and looks the same, but without the link to a bank. You load money onto the card either at the shop you buy it from or via a bank transfer, prepaid cards can be used the same as a debit card but you´ll need to reload as needed.

Using a prepaid card decreases the risk of fraud as the potential loss is limited to the amount loaded on your card. Many people prefer to use prepaid cards for online purchases especially when it’s for a foreign transaction.

Where to get a Prepaid Card?

Prepaid cards can be ordered either online or pick them up at a shop as many supermarkets and large retails now have their own prepaid cards, some of the shops at outlets include:

Post Offices
Newsagents
Large Supermarkets
Banks
Building Societies

When purchasing the card from a retail store you´ll need to decide how much you´d like to credit the card with this can normally be paid in cash and credited to the card immediately.

What are the costs of having a Prepaid card:

All prepaid cards come with some type of fee structure, sure you might get one for free but rest assured the transactional fee will be higher than the ones that require a fee to purchase the card. Therefore it’s important to research the cards before deciding on which to go with.

Some potential costs can include the following:

Upfront cost:
An upfront cost to buy the card ranges from £5 – £10 depending on the retailer (remember always check top up & transaction fees if the card is given away for free)
Monthly Membership Fee:
There can be a membership fee for owning the card charged anywhere between £1 to £15 per month
Top-Up Fee:
These fees vary from 3% to 6% and are across the board with all card issuers
Transactional Fees:
In our research, we have found every prepaid card issuer charges a transactional fee varying from 2% to 5% of the transaction.
Cash Machine Withdrawal Fees
These can be a lot higher if the transaction is abroad and in a foreign currency.
Card Replacement Fee
Replacement card fee if the card is stolen or lost

UK’s Best Prepaid Cards: Our Top Pick!

TABLE GOES HERE

How Safe Are Prepaid Cards?

Prepaid cards offer safety benefits for users. They reduce overspending risk and offer easier cash management. As they’re not directly linked to bank accounts, they minimize fraud exposure if card details are stolen. Also, prepaid card use doesn’t affect the credit file, avoiding the risk of credit damage.

However, there are a few drawbacks to using a prepaid card:

No protection under Consumer Credit Act Section 75 for purchases between £100 and £30,000, compared to using a credit card. To learn more about Section 75’s consumer benefits click here.

Prepaid cards lack coverage under (FSCS) Financial Services Compensation Scheme (FSCS). Exception: Tesco Clubcard Pay+ is covered.

Using a Prepaid Card For Travelling!

Travel money cards, also known as prepaid currency cards, offer an easy way to carry money while travelling, instead of cash or traditional credit/debit cards. Load the card with a fixed amount and use it for purchases or cash machine withdrawals at your destination.

Prepaid Cards Poor Credit History!

Many people find themselves with a poor credit history and they’re suddenly unable to access credit cards but still want the convenience of a credit card as they are not a credit product there is no need for a provider to check your credit history.

Owning a Prepaid card gives an advantage to people that tend to overspend when given the freedom of a credit card, due to the fact only what has been credited to the card can be spent.

Prepaid Cards For Under 18s

Prepaid cards for kids are becoming more popular. It gives children an insight into the world of money management at a very early age. And as a parent, you’re able to control the spending limits of your children, and if the child loses the card then the money will still be in the account which wouldn’t be the case if it were cash. Read more about our Top 10 prepaid cards for children here.

Benefits of a PrePaid Card

Some potential costs can include the following:

No Credit Checks:
For people unable to obtain a credit card prepaid cards are a blessing and give the freedom of a credit card but without the risk.
Budget Management:
Prepaid cards provide an excellent way of budgeting and debt prevention by capping spending limits.

They also offer a way for young people to learn about responsible financial management, while still allowing a parent to maintain control.
Security:
Using a prepaid card helps to reduce financial loss in the case of theft or card fraud. Since the only amount at risk of fraud or theft is the balance of the card.

Also if the card is lost then you are more likely to be able to get the money back as it´ll still be on your card when you replace it, whereas if you lost the cash the likely hood of getting it back is slim to none.
Alternative Currencies:
Prepaid cards can help control your spending abroad, without the risk of incurring unforeseen charges. It is more convenient than changing up money into the local currency and also provides you with some protection if your card is lost or stolen.

What are the drawbacks of PrePaid Cards

Some potential costs can include the following:

Protection: Unlike a credit card Prepaid cards are not covered by Section 75 of the Consumer Credit Act Protection.
Fees: Prepaid cards are renowned to be more expensive to manage than traditional credit cards, and have many fees including loading, transaction and purchase fees.

The Wallet Doctor Summary:

The use of a debit card or credit card, for everyday purchases, may make more sense given that you´ll have to pay fees and charges for a prepaid card. However, Prepaid cards can be a great option in a variety of specific circumstances, such as for travel or as a means of budgeting, particularly if you have a poor credit record.

But as with all financial products, it pays to do your own research and pick the card that best suits your needs. And remember before choosing a card, make sure to read the fine print to ensure there aren’t nasty surprises.

Where to get a Prepaid Card?

Prepaid cards can be ordered either online or pick them up at a shop as many supermarkets and large retails now have their own prepaid cards, some of the shops at outlets include:

Post Offices
Newsagents
Large Supermarkets
Banks
Building Societies

When purchasing the card from a retail store you´ll need to decide how much you´d like to credit the card with this can normally be paid in cash and credited to the card immediately.

What are the costs of having a Prepaid card:

Some potential costs can include the following:

Upfront cost:
An upfront cost to buy the card ranges from £5 – £10 depending on the retailer (remember always check top up & transaction fees if the card is given away for free)
Monthly Membership Fee:
There can be a membership fee for owning the card charged anywhere between £1 to £15 per month
Top-Up Fee:
These fees vary from 3% to 6% and are across the board with all card issuers
Transactional Fees:
In our research, we have found every prepaid card issuer charges a transactional fee varying from 2% to 5% of the transaction.
Cash Machine Withdrawal Fees
These can be a lot higher if the transaction is abroad and in a foreign currency.
Card Replacement Fee
Replacement card fee if the card is stolen or lost

UK’s Best Prepaid Cards: Our Top Pick!

TABLE GOES HERE

How Safe Are Prepaid Cards?

However, there are a few drawbacks to using a prepaid card:

No protection under Consumer Credit Act Section 75 for purchases between £100 and £30,000, compared to using a credit card. To learn more about Section 75’s consumer benefits click here.

Prepaid cards lack coverage under (FSCS) Financial Services Compensation Scheme (FSCS). Exception: Tesco Clubcard Pay+ is covered.

Using a Prepaid Card For Travelling!

Prepaid Cards Poor Credit History!

Owning a Prepaid card gives an advantage to people that tend to overspend when given the freedom of a credit card, due to the fact only what has been credited to the card can be spent.

Prepaid Cards For Under 18s

Benefits of a PrePaid Card

Some potential costs can include the following:

No Credit Checks:
For people unable to obtain a credit card prepaid cards are a blessing and give the freedom of a credit card but without the risk.
Budget Management:
Prepaid cards provide an excellent way of budgeting and debt prevention by capping spending limits.
They also offer a way for young people to learn about responsible financial management, while still allowing a parent to maintain control.
Security:
Using a prepaid card helps to reduce financial loss in the case of theft or card fraud. Since the only amount at risk of fraud or theft is the balance of the card.
Also if the card is lost then you are more likely to be able to get the money back as it´ll still be on your card when you replace it, whereas if you lost the cash the likely hood of getting it back is slim to none.
Alternative Currencies:
Prepaid cards can help control your spending abroad, without the risk of incurring unforeseen charges. It is more convenient than changing up money into the local currency and also provides you with some protection if your card is lost or stolen.

What are the drawbacks of PrePaid Cards

Some potential costs can include the following:

Protection: Unlike a credit card Prepaid cards are not covered by Section 75 of the Consumer Credit Act Protection.
Fees: Prepaid cards are renowned to be more expensive to manage than traditional credit cards, and have many fees including loading, transaction and purchase fees.

The Wallet Doctor Summary:

UK’s Best Prepaid Cards: Our Top Pick!

TABLE GOES HERE

How Safe Are Prepaid Cards?

However, there are a few drawbacks to using a prepaid card:

No protection under Consumer Credit Act Section 75 for purchases between £100 and £30,000, compared to using a credit card. To learn more about Section 75’s consumer benefits click here.

Prepaid cards lack coverage under (FSCS) Financial Services Compensation Scheme (FSCS). Exception: Tesco Clubcard Pay+ is covered.

Using a Prepaid Card For Travelling!

Prepaid Cards Poor Credit History!

Owning a Prepaid card gives an advantage to people that tend to overspend when given the freedom of a credit card, due to the fact only what has been credited to the card can be spent.

Prepaid Cards For Under 18s

Benefits of a PrePaid Card

Some potential costs can include the following:

No Credit Checks:
For people unable to obtain a credit card prepaid cards are a blessing and give the freedom of a credit card but without the risk.
Budget Management:
Prepaid cards provide an excellent way of budgeting and debt prevention by capping spending limits.
They also offer a way for young people to learn about responsible financial management, while still allowing a parent to maintain control.
Security:
Using a prepaid card helps to reduce financial loss in the case of theft or card fraud. Since the only amount at risk of fraud or theft is the balance of the card.
Also if the card is lost then you are more likely to be able to get the money back as it´ll still be on your card when you replace it, whereas if you lost the cash the likely hood of getting it back is slim to none.
Alternative Currencies:
Prepaid cards can help control your spending abroad, without the risk of incurring unforeseen charges. It is more convenient than changing up money into the local currency and also provides you with some protection if your card is lost or stolen.

What are the drawbacks of PrePaid Cards

Some potential costs can include the following:

Protection: Unlike a credit card Prepaid cards are not covered by Section 75 of the Consumer Credit Act Protection.
Fees: Prepaid cards are renowned to be more expensive to manage than traditional credit cards, and have many fees including loading, transaction and purchase fees.

The Wallet Doctor Summary:

Top Prepaid & Credit Cards

We’re constantly scouring card providers to find you the best rates possible. We’ve sorted them by prepaid cards and credit cards. Just click one of the tabs below to see what you can apply for.