Pre-paid cash card

The prepaid card is far from a new idea. The concept is basically the same as a prepaid gift card or a mobile phone SIM card. A prepaid cash card looks like a credit or debit card, and gives users the ability to purchase products and services with a card but with a crucial difference which means a person can only spend the balance that has been preloaded onto the card. This means there is no risk of running into debt as it has no credit or overdraft facility.

One can simply start using prepaid cash card when money has been loaded on to a prepaid card by cash at a bank, Post Office, at Payzone or PayPoint terminals, bank transfer, through your employer or even by credit card.

When using for purchasing at a high street store, they work in exactly the same way as a credit or debit card. When purchasing just simply hand over the card and then you will be asked to enter your PIN number (supplied with the card) on an electronic keypad or to sign a payment slip so your signature can be matched with that on the back of the card (if there is no Chip on the card). The total amount will be taken from your card immediately and the transaction is complete.

To shop online, you'll find the item you want to buy and click on to the website's "checkout" page before filling in your details and those of your prepaid card. As long as you have enough cash loaded on your card, the purchase is completed and your item will be shipped to you.



Application of pre-paid cash card for consumers

• Buying groceries and petrol



• As a replacement for travellers cheques or travel cash for a low cost alternative to paying for goods and services abroad



• Topping up your mobile phone



• Internet shopping including eBay



• Paying bills



• Transferring money to friends and family either in the UK or overseas (known as remittance)



• Withdrawing cash from an ATM



• People who wish to use foreign currency on a holiday



• Newly arrived immigrant, who although earning, cannot yet obtain credit due to having no credit footprint in the UK



• A person who has a poor credit rating or a history of bad debt who cannot get a credit card



• Parent of a young person travelling abroad.