Find out how to choose the best prepaid card for the way you spend.
When it comes to choosing a prepaid card it's important to compare the different features available with each card so that you can find the best option for the way you spend.
Taking the time to do this will help to make sure that you get a convenient, value for money, facility for spending without the need for credit.
Features to compare include:
- Fees -
Whatever you're looking for from a prepaid card it's important to get the lowest fees and charges so that your money goes as far as possible. Make sure you compare all of the costs that you're going to incur during your use of the card and not just the headline sign up fee. Think about how often you're going to need to reload, use an ATM and make purchases and compare the fees accordingly. What Do Prepaid Cards Cost to Run? for more information on the costs associated with using a prepaid card. - Account management -
Think about how you'd like to manage your card account. Is it important that you can top up and access statements online or is having lots of retailers nearby that allow you to reload going to be more important? You should also think about where you're going to be using your card. Does the provider allow overseas transactions and what are the costs involved? - Special features -
Some providers tailor their cards for use overseas and offer good deals on foreign currency withdrawals accordingly, others offer discounts when you use your card to make purchases with certain retailers. Think about how you're going to want to use your card and go with an option that provides you with features that will be of most benefit to you. - Security -
Find out what the provider's policy is on fraudulent transactions. Do they offer any kind of guarantee or purchase protection on your card? - Customer services -
Make sure the card provider has a 24/7 customer services helpline that lets you credit your card at any time so that you're never left high and dry without any cash. You should also compare the call charges so that you know you're not paying more than you need to when you top up. - Transaction usage restrictions -
Some, but not all, prepaid cards place restrictions on the way you can spend on the card. For this reason it's important to check the terms and conditions carefully before you apply to ensure that you're going to be able to use your card in the way you need to. In particular, many prepaid card providers do not allow pre-authorised transactions to be made.
These are transactions whereby an initial authorisation for funds is required before the full value of the transaction is known. It includes those made at pay-at-the-pump petrol stations (where your card is entered and authorised before you fill up your car), car rental firms (where you pay an initial deposit for the car hire but are later charged for any damage or fuel payments required), tabs or any other deposits for goods and services whereby your card is used as a guarantee and the full purchase amount will later be billed to your card.
For more information on how prepaid cards work read our article What are Prepaid Cards and How Do They Work?
