Some come with different fees depending how you make the payment, e.g. Load charges: Some cards charge you for loading cash onto them. UK transaction fees: These are charged every time you make a purchase on your card.Ĭash withdrawal fees: Charged every time you withdraw from a cash machine (ATM). Some also charge you for transferring any funds left on the card back to your bank. one month.Īdditional card fees: Some providers let you take out additional cards for your family or colleagues, but they usually charge a fee for this.Ĭancellation fees: Some cards charge this when you close your account. Inactivity fees: These are charged on some cards if you do not use your card for a certain length of time, e.g. Monthly or annual fees: A set amount charged every month or year until you cancel your prepaid card. Some cards come without this fee or waive it if you top it up with a certain amount. Fees vary between providers but may include: Setting up the cardĪ card purchase fee: The one off cost of first buying the card, which is usually between £1 and £15. Use for your business: Some cards can be used for a business' spending.Īdd additional cardholders onto: Joint prepaid cards allow two or more holders. Use abroad: Some cards have lower fees when you use them outside the UK. These come with prepaid cards and can be used instead of a normal bank account. If you take out a basic bank account, you could have your wages paid directly onto it by your employer. Ask your provider for the sort code, account number and reference number needed to send money to the card. Other people can also pay money onto your prepaid card by bank transfer.

Pay in cash at a bank, post office or PayPoint store Sign in to your prepaid card's online account and make a payment from your debit card Send a bank transfer from your current account Set up direct debits and standing orders to automatically pay your bills with some prepaid cards In person using contactless transactions or your personal identification number (PIN)īy phone or mail order using your card number You can use prepaid cards to pay for things with any business that accepts card payments. This means you should be able to get one even if you have bad credit and have previously been turned down for current accounts or credit cards. What are the advantages of prepaid cards and should you get one? No need for a credit checkĪs you aren’t able to borrow with them, most prepaid cards are available without a credit check. This is the company that processes the transactions. They also have a MasterCard or Visa logo on them. Prepaid cards look the same as credit and debit cards and have a 16 digit card number, chip and magnetic strip. Payments are rejected if there isn’t enough money on your card to cover them. So, if you had £5 on the card and loaded another £50 onto it, you could spend up to £55 before you need to top it up again. There is no overdraft facility and you cannot get into debt with a prepaid card. When you pay money onto the card, it is added to your balance, and this is the maximum amount you can then spend without adding more funds. The difference is that you can only spend money you have already loaded onto the card. You can use a prepaid card to make purchases or withdraw cash in the same way as a credit or debit card. However, because they don’t let you borrow, they are a great alternative for people who want to keep a firm handle on their spending or have previously been turned down for other types of plastic. A prepaid card can be used in the same way as a debit or credit card and looks the same too.

Prepaid debit credit cards