Prepaid Cards
If you are making an order with Prima-med and you don't own a credit card and you don't wish to own a credit card, there is another way to pay. Pre-paid cards are a convenient way of buying online, while avoiding the risk of running into debt, a factor commonly associated with credit cards. While they are already popular in the USA, many people in Europe have yet to hear of them.
Please click on the titles to find out more about pre-paid cards today.
What are the benefits of a prepaid card?
Prepaid cards can be used in the same way as a credit card. However, there is a difference. There is no risk of running into debt with a prepaid card as it is completely funded by your own cash and therefore the money you have in your prepaid account is the money you have to spend. There are no credit checks and no interest to pay. Consequently, a better description would be a prepaid debit card, a prepaid Visa card or a prepaid MasterCard rather than a 'prepaid credit card'.
Prepaid cards run on the same principle as prepaid phone cards or prepaid gift cards. You load money onto a card that can then be used at retailers and online merchants. It can even be used to pay your bills and top up your mobile phone, and you can withdraw cash with the prepaid Visa or MasterCard at an ATM.
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What are the benefits of a prepaid card?
There are numerous benefits to the prepaid card. These include:
- Available to everyone- No credit checks.
- Safety - If you're buying online or on the phone and your card is used fraudulently you can get your money back.
- No debt risk -With a prepaid card there is no chance of spending too much as you are limited to the amount you put on your card.
- The card for travel - As well as being able to top up the card, depending on the specific provider, you will be able to use it at ATMs worldwide. Additionally, if you lose your card you can contact your provider and they will send a new one to you. Some providers even offer 0% foreign exchange fees.
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The main disadvantage of the prepaid card is the high costs and fees associated with them. Here is a guide to some of the potential costs that you will need to consider before choosing a company. These costs will vary from company to company. As more companies enter the prepaid card market the more competitive the fees will become which will benefit consumers.
- Card application fee
- Monthly service charge
- Customer call helpline - Check Rates
- Credit card/cash load - Check if there is 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?
- Bank deposit fee - If you deposit funds at a bank, Post Office, supermarket etc, does the bank take a fee for providing the service?
- 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.
- Courier delivery - Do you pay to have your card sent to you quickly?
- 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?
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The leading names in prepaid cards currently are Cashplus, Cash2Go and Amex Travellers Cheque Card along with Speedcard, I-Money and I-Travel. There also prepaid Visa cards and prepaid MasterCards.
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