TEI corporation

The definition of a prepaid credit card is: A payment card (such as MasterCard), pre-loaded with your own money, which you can then use wherever the payment card is accepted, including on the internet and abroad.
Prepaid cards have a much wider acceptance, and can be used internationally. They are the same as credit cards, but without the credit. The prepaid card provided comes with your own name, and even CHIP & PIN cards.

 

The prepaid card is not a credit facility, so you do not need to pass a credit check. Even if you have bad credit or CCJs you are guaranteed to be approved for a prepaid card. However, like most Money products, you are still required to provide details verifying your identity and address (for example a passport, driving licence or national identity card + utility bill or an official letter with your permanent address). Your details are verified online, and give you an instant approval. This is an electronic identity check, not a credit check!

- Everyday shopping
- Internet shopping
- Mail order and telephone order
- Topping up your mobile phone
- Paying bills
- Paying monthly subscriptions
- Withdrawing cash from ATMs

Convenience
- Prepaid cards do not get you into debt, as only transactions up to the balance loaded onto the prepaid account will be authorised. Therefore, you can only spend what you have paid in! You can manage your account online. So, you are always within easy reach of your balance.
As it’s your own money, and not credit, there are no interest charges, late payment or over limit fees.
You are in complete control of your funds, and do not need to carry around large sums of cash! In most cases, if your card gets lost or stolen, your remaining balance will be transferred across to a new account, and you will receive a replacement card.

 

Money management
- Can help you budget your money.
- No interest charges on the card.
- There’s no danger of going overdrawn on the card. Once the money loaded onto the card has been spent, you can’t spend any more until you’ve reloaded it.

 

Security
- Carrying a prepaid card is safer than carrying cash. The card can be blocked if it’s lost or stolen

 

Prepaid cards are widely accepted across the internet. They are issued under a MasterCard, Visa Electron, Maestro or Amex badge, and therefore have the same acceptance as credit and debit cards.
So, rather than paying cash in the high street, you can get some great deals online, and save €€€'s. Goods and services are usually much cheaper online, so you can grab some bargains using your chosen pre-paid card.
You can also use a prepaid card to register for services such as Ebay or Paypal. You can then grab even better deals, and pay via Paypal immediately. This replaces the need to send cash, cheques or postal orders, which can add another 7-10 days before you receive your goods.

Comparing prepaid cards to debit and credit cards

Prepaid card	Debit card	Credit card
No credit checks	Credit check to open the bank account to which the card is linked.	Credit check to approve card, decide credit limit and set interest rate.
No line of credit (so no borrowing and no debt).	Account can have an overdraft facility.	Line of credit that can be increased over time
No interest charges	Interest charges on money borrowed against an overdraft and with no interest free period.	Interest charges on money borrowed against the credit limit, if there is an outstanding balance after the interest-free period.
Small fees may be charged depending on the type of service.	Fees if you exceed an agreed overdraft.	Charges such as late payment fees, over-limit fees, cash advance fees, foreign exchange charges, duplicate statement fees and nonactivity fees. These are explained in the T and Cs for each card product.
Only require basic customer information.	Require full customer information.	Require full customer information.
Can be used wherever MasterCard and/or Maestro are accepted,	Can be used wherever MasterCard and/or Maestro are accepted, depending on the brand mark on your card.	Can be used anywhere MasterCard is accepted.
Can sometimes be used at an ATM	Can be used at an ATM	Can be used at an ATM
Can be cancelled/blocked if lost or stolen.	Can be cancelled/blocked if lost or stolen.	Can be cancelled/blocked if lost or stolen.

 

Prepaid Payment Cards in Business

 

Prepaid cards should not just be seen as a mechanism for individuals with a bad credit history to be approved for a Visa or MasterCard.

The use of prepaid cards extends far wider, and can be an extremely effective tool, for consumers and businesses regardless of credit history. In the above and bellow sections we provide enough details of common scenarios where prepaid debit cards can be more beneficial than traditional credit cards in the world of business.

Your prepaid card can be a great way of managing Pay Per Click (PPC) Search engine campaigns. An account may be reloaded with the monthly or weekly budget for the campaign, therefore making it impossible to overspend.

The business prepaid card will have your company name or your name.