Prepaid Credit Cards

What a Prepaid credit card is and how does a Prepaid credit card work?

Does that word ‘card’ tell you something?  Yes, it looks like a credit card or a debit card and you have the same ability to purchase goods and services just as you do with either a credit or a debit card.  The difference lies in the fact that with prepaid credit cards you can only spend the amount of money on the card and no more.  It does not have credit or overdraft facilities attached.

Access to the card is by Pin number when you purchase the card and money can generally be added onto the prepaid card at a bank, Posts Office, Payzone or PayPoint terminal or by transfer through your bank.   Not all Prepaid cards have these loading facilities so you need to check with the card provider when doing your research before purchasing.

Why should I use a Prepaid credit card?

There are significant advantages to using a Prepaid credit card over other cards:

• Spending control – this is a huge advantage to some people who have difficulty in managing a credit card.  Also if you are giving funds to another person like say a child, you can control the spending allowance and as well as that you can access details to see where and how the monies are being spent
• No credit checks – this can be a good way for someone with a not so good credit history to still be able to carry a card.  Identity checks will be carried out to ensure you are using a card under your own name, but that is all
• Travelling away – if you or someone you are funding is travelling, especially abroad, a Prepaid credit card is an ideal way to access cash.  It is a much superior and safer way to have cash than carrying a number of travellers’ cheques.  With the availability of being able to fund the card via the internet these cards make an ideal method of payment for services and goods

Bankwest Zero Transaction Account

Limited time offer:When you apply for a Bankwest Zero Transaction Account you also receive a FREE MasterCard Debit Card with your savings account. This gives you access to your own funds with the benefits and convenience of having a MasterCard Card

Features:

• Free access to all major bank ATMs Australia wide – thats over 10,000 Bankwest, CBA, Westpac, NAB, and ANZ branded ATMs.
• No monthly account fees.
• Fee free unlimited transactions*.
• Deposit a minimum of $2,000 per month (e.g. salary).
• MasterCard Debit Card access.
• Cheque book access.
• Online and phone Banking.
• Your choice of 6 different colours
• Awarded Money Magazines “Best Everyday Account” for branch access and electronic transactions.

Researching which prepaid credit card is best for you

What credit card and Prepaid credit cards to have in common is the fact that there are various fees to consider.   The following are factors to take into consideration before making your final decision:

• Consider the use you are going to have of the card – is it for everyday use and do you need to keep track of expenditure on the internet and do you want to reload it on the internet
• Are you travelling – because you could be anywhere in the world wanting to reload your card it would be important to choose a provider that has 24 hour service otherwise you could be needing money and not be able to reload it because it is not business hours
• Do you need more than one card – if you are looking to have two or more cards on the one account, check that there are no additional fees because of this fact
• Reload options – very important is the reload option, especially if this is going to be your main spending card for everyday needs.  You don’t want to be out shopping and find you have no money left on your card.  You need to make sure there are a good range of reload options to suit your needs
• The basic fee check – like any banking service there are fees so check how much these are and when they are charged

Although a relatively new concept in card spending, the prepaid card market is growing at a rapid rate and over time there will be more competitive deals which should bring down service costs and also have more provision for better service.  Consider the options listed above and shop around for the best deal to give you maximum service at the cheapest cost.

Pre-paid Credit Cards Comparison