Guide to Prepaid cards - 3/5
What are the charges?
Arguably the main disadvantage of a prepaid card are the costs and fees associated with using them. Here is a guide to some of the potential costs to look out for:
- Card application fee - Is there a charge for opening your account? If so is money loaded onto the card so that you have a balance on the card?
- Monthly service charge - Is there a monthly subscription fee and what do you get for this charge? For example does the prepaid card company provide free top-ups, an online service, a helpline or other additional services for you, funded by this fee?
- Customer call helpline - Are you charged at premium rate, national rate or standard rate for essential calls to the company's helpline?
- Credit card/cash load - Is there a charge every time you top-up and does this vary by the manner in which you top-up, for example transferring funds from a credit card or in cash at the Post Office or at a Payzone or Paypoint terminal?
- Deposit fee - If you deposit funds at a bank, does the bank take a fee for providing the service? If so is there more cost effective way of reloading which is still convenient?
- ATM withdrawal fee - Are there costs when you withdraw cash on your card? Is this higher for foreign transactions?
- Purchase/Internet transaction - Is there a charge when you purchase goods on your card and do these vary for online transactions? This could also be higher if your transaction is made overseas.
- Account termination fee - Is there a charge for closing your account?
- Card replacement - If you lose your prepaid card or it is stolen/damaged how much will the prepaid card company charge for a replacement?
- Card renewal - Like a credit card, a prepaid card will have an expiry date. Are you charged for renewal?
- Inactivity fee - Some firms charge a small sum if the card is not used for a defined period of time.
Now that you understand how prepaid cards work you will want to know which companies are out there and what you will get when you sign up.
If you would like to skip directly to another part of this guide, click on one of the links below:
What is a prepaid card and how does it work?
Prepaid card uses and benefits
Which card is right for you?
Frequently Asked Questions