Prepaid cards can be a great alternative to traditional debit and credit cards for many people. If you’re weighing up the pros and cons of prepaid debit cards, the security of your money is sure to be something you’re thinking about. Read on for our ultimate guide to the security and benefits of using prepaid cards.
What is a prepaid card?
A prepaid card is a type of debit card. Unlike traditional debit cards, a prepaid card is not connected to your bank account. Simply load money onto your prepaid card as and when you need it, and you can spend this money anywhere you’d normally be able to use a debit or credit card.
How safe are prepaid cards?
Prepaid cards offer an equivalent level of security to traditional debit cards. They are PIN protected and are not connected to your bank account, so you’re less likely to be affected by fraud when shopping abroad or online.
In addition to this, icount prepaid Mastercard holders benefit from purchase protection, which provides support on all purchases should you receive an incorrect or damaged item, or if your item goes missing on its way to you.
Benefits of prepaid cards
No more overspending
If you’re prone to dipping into your overdraft, a prepaid card may be a useful tool to help you manage your day-to-day spending. Once money has been loaded onto your prepaid card, you cannot spend more than that amount. This also makes prepaid cards a good way to teach young adults about money management, and introduce them to budgeting.
If you’d like more information about budgeting and managing your spending, our money guides are a great place to go for advice.
Benefits of prepaid cards on holiday
From currency exchange fees to ATM charges, costs can quickly mount up when spending money abroad. With a prepaid card, such as icount’s prepaid MasterCard®, you won’t be charged commission on your currency exchange, nor will you encounter fees when withdrawing cash abroad. Taking a prepaid card on holiday with you is also safer than travelling with cash and, should you lose your card, you will receive a replacement with your money on it.
Should you get a prepaid card?
Prepaid cards can be a useful financial tool for everyone. Whether you need a helping hand to manage your day-to-day spending, or you’d like to build your credit score, a prepaid card can help.
Head over to our prepaid cards page, if you’re interested in finding out more about the prepaid card options available to you, or applying for an icount prepaid Mastercard.