Hi All,

It seems this forum is full of threads about peoples negative experience with prepaid cards. If it's with transaction fees, loading fees, helpline fees, monthly charge fees, cards arriving late, pin number not being given, websites refusing them......I ask, is it worth it?

With most creditcards you can ask for a limit to suit you. If your son/daughter is going to University, get them a card with a £500 limit and pay their balance off after a few days.

If you are using it on holiday, why? A credit card gives you more fraud protection and I'd rather be spending their money than spending my own. It tends to give them a better incentive to look after you.

They market it as a way of having the acceptance of a creditcard with the assurance you can't spend money you don't have. Surely we are all adults and can control ourselves and not overspend on our creditcards..

I think prepaid cards are aimed at people who couldn't control themselves, did overspend, got in trouble and as such there's a big smoking hole where their credit status used to be. Credit cards have their benefits and you can ask for a limit to suit you- but if you're a good little soldier they put it up for you. This country has a tremendous debt problem and this is one big factor; access to cash that's not yours, that you never asked for, that doesn't come cheap. People think they are adults with discipline but after a bad day, a spangly new toy on credit cheers you up and a minimum payment seems a small price to pay...slippery slope that a lot of people are trying to clamber back up, sadly. I suppose a prepaid card is good for those who have already fallen into the trap once, or are underconfident that they would manage a card well. It's in the same line of thinking as pay-as-you-go phones, utility key meters etc- shame the customer service and set-up is so bad on these cards!

I understand what you are saying but for those such people I don't see the benefits that a perpaid card gives as opposed to their normal debit card. If they are only spending their own cash I'm not sure what difference it makes which cash that card is on. Sure, your Cash Card might not be accepted as a Visa/Mastercard, but is that such a big deal? If you like spending the cash you have, everyone takes cash..

Some people's credit is so rubbish they can't even get a debit card or a bank account. Some people don't like to use their debit cards on the internet either; that's all there is I guess.

They do have their uses.

They help control spending. For some its easier to load up a card with their monthly budget limit and then hide their debit card to prevent over spending.

Great for online purchases. I use one as a safety buffer between my 'real' banking and internet transactions. The first time I use a new site I use a pre-paid. That way if its a scam or the site is hacked there is no danger to me, the card is pretty much disposable. I only ever put my purchase amount onto the card before ordering.

Travel: They can help limit losses if stolen, also I've found that in many cases the bog standard UK Maestro card won't work in some shops. (Esp in Canada or US)

Kids: Very handy for teaching teenagers how to manage their money.

No i dont think they are that usefull. I used mine once in 2 years and they closed it down as i never used it. Its just yet another way for companys to make money....... And its very rarely these cards would be on a credit file anyway as they are not credit cards. I was told that by my refrence agency.....

There are loads of banks that will give you a debit card now www.halifax.co.uk cash card account

www.capitalone.co.uk

They're pretty pointless imo

I'm thinking of getting a Mastercard Prime, not because I'm rubbish with money (I'm not), but because I don't want my main financial details floating around the net!!

I would say a good credit card is safer. They will fight any dodgy charges, rates are better and you can also get reward points.

Why bother?

I can save a lot buying online, even taking into account the transaction and reload charges, that's why. Example: A game from GAME would release at £30, you could probably pick up the same game online (new) for around £20. £10 pound saving - £1 transaction fee equals £9 saving.