However, as prepaid cash cards have become increasingly popular, more and more cards have appeared on the market making it more difficult to find the right one for you.
So, when you’re looking for prepay cards, it’s vital that you shop around.
Fees and charges
When you compare prepaid credit cards, always look at the fees and charges levied by each card. Typically you will find that most cards have some fees and charges although there are several ‘prepaid credit cards no fees’ deals in the market. Common fees include:
- Card purchase fee – a charge to buy the card in the first place
- Monthly fees – a monthly cost for maintaining your pay as you go credit card account
- ATM fees – charges for withdrawing your cash via an ATM
- UK transaction fees – the fee charged for each UK transaction you make with your card
- Load charges – charges for loading cash onto your prepaid cash cards
Always make sure you know what fees and charges apply to the prepaid cards you’re considering in both the UK and overseas. We explain why below.
Using your prepaid cards abroad
One of the most popular reasons that Brits take out prepay cards is to use them overseas. Prepaid travel cards allow you to load up your card with cash before you go on holiday. You can then use them abroad to withdraw local currency from an ATM or to pay for goods and services.
Taking a prepaid card abroad offers security benefits as you don’t have to carry a large quantity of cash or traveller’s cheques in a foreign country. And, it can help you keep your holiday spending under control.
When choosing prepaid travel cards, make sure you know what fees and charges apply when you use your card overseas. And, it’s also important to establish that you benefit from a competitive exchange rate between sterling and the currency of the country you’re visiting.
Our comparison table can help you compare the features and benefits of a wide choice of prepaid cards in order that you can find the right card.