Prepaid debit cards are a great alternative to bank accounts or credit cards, with a range of uses and benefits. Here’s why you should consider one.
What is a prepaid card?
A prepaid card is exactly what it sounds like; a card that you load up with money. You can then use it to pay for goods and services, as you would a normal debit card. Your prepaid card can be used for transactions that accept VISA or Mastercard.
As prepaid debit cards have no overdraft facility, you need to have enough funds on your card for the goods and services you are paying for.
Who uses prepaid cards?
There are many reasons why people get a prepaid card or an e-money account, as they cover so many purposes. Here are just a few.
Bad credit
If you have bad credit, you may find yourself limited to the type of account you can get, or be unable to get one at all. This can be an issue if you have household bills to pay, as many are paid electronically and require a Mastercard or VISA card. E-money accounts also allow you to use the payment services for Faster Payments, Bacs and direct debit.
Having an e-money account with a linked prepaid debit card means you can pay money into your account to cover any direct debit payments for your monthly bills. Not only will it relieve any credit rating worries, but it will save you from enduring the hold music you’re stuck with when you have to call and make a payment.
If you’re guilty of dipping into the bill money every month (we’ve all been there), our Vox Money Account and linked card lets you budget and manage your outgoings with the money wallets in your account. You can also access your regular wallet account for spending without dipping into the bill money you’ve put away.
Travel
In the past, you might have been forced to choose between paying hefty card fees or carrying large amounts of physical cash when travelling abroad.
With a prepaid card, you can load up the card with your holiday spends and use it as you would a standard card. You can load it up over time after you’ve booked your flights, or do it all in one go. Easy!
Saving
If you want to put money aside for a rainy day, a holiday or even to get ahead on next month’s bills, moving your money to a digital wallet is a great solution. Removing the temptation of extra funds from your main account allows you to put that extra cash out of sight and out of mind.
What you need to know about prepaid cards
We receive the same questions from people who are new to the world of prepaid cards. Here’s what we tell them.
Are prepaid cards safe?
In short, yes, prepaid cards are safe. While they don’t have the same Section 75 coverage, which automatically protects purchases over £100, account holders have access to Visa and Visa’s Chargeback scheme.
Chargeback is offered at the company’s discretion, so if you made an expensive purchase using your prepaid card that turned out to be faulty or didn’t show up, you have a good chance of getting your money back.
As for the account itself, access is password protected and the card requires a password with two factor authentication. There is also an option to log in with Face ID or fingerprint. Like many contactless cards, a Vox Money Account has a limit of £45. Any transactions above that will require your PIN code.
You also get the added benefit of security, as our card can be easily frozen from the app or marked as inactive online if it is lost or stolen. Having control and access to digital payments helps to make your life easier.
Can I send money from my prepaid card?
No, while a prepaid card works like a debit card, you can only send money from the e-account your card is linked to, which works just like a traditional bank.
You’ll have an account number and sort code, so you can send and receive money from any other UK bank account.
Can I take money from my prepaid card?
Yes, with your prepaid card, you can visit any ATM that accepts VISA and Mastercard, and get cashback at some retailers.
Yep, prepaid cards are just as convenient as they sound! Visit our sign up page to join the world of digital wallets today!
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