A prepaid card is a quick and easy way to get a debit card without opening a traditional bank account
If you’ve been refused a bank account, have poor credit history, or just want a simple alternative, a prepaid card can be a useful solution. You load money onto a prepaid card and can only spend what’s available- no overdraft, no borrowing, no debt.
That’s why prepaid cards are so popular. But they’re also useful for much more. Let’s explore what you can do with one.
Table of Contents
- Why Do People Choose Prepaid Cards?
- 5 Things You Can Do with a Prepaid Card
- Load Money onto a Prepaid Card
- Withdraw Cash from ATMs
- Shop Online Using Your Prepaid Card
- Shop In-Store with Ease
- Use a Prepaid Card for Holiday Money
- How Suits Me Can Help
- Frequently Asked Questions
Why Do People Choose Prepaid Cards?
There are a variety of reasons people may choose prepaid cards, including:
- Poor or limited credit history. Issuers of prepaid cards do not carry out credit checks and only require that you be able to prove your identity. This means the whole process is a lot quicker and easier and gives access to banking products that people may have previously struggled to be accepted for.
- Being new to the UK. Most new arrivals don’t have access to documents such as proof of UK address straight away, making opening a bank account difficult or slow.
- Wanting a simple way to budget and manage money. By only loading set amounts onto a prepaid card, people who may struggle with budgeting can track spending and ensure they do not fall into debt.
5 Things You Can Do with a Prepaid Card
1. Load Money Onto a Prepaid Card
Prepaid cards work by having money loaded onto them first. You can only spend the amount of money that is on the card at any given time as there is no overdraft option.
This means that you will have to top-up your balance by loading money onto your card.
You can top up by:
- Transferring funds from a bank account- whether it be your personal bank account or someone else’s.
- Getting paid wages or benefits from a third party.
- Loading cash onto your card at certain designated retail outlets.
There may be some card loading fees, so make sure you are aware of them before you load funds into your prepaid card.
2. Withdraw Cash from ATMs
Carrying a lot of cash around can be risky. If you lose it or have it stolen, it’s very hard to recover it.
You can use a prepaid debit card to withdraw cash from ATMs as and when you need it.
3. Shop Online Using Your Prepaid Card
Prepaid cards have a card number, sort code and expiry date just like regular debit cards. This means you can use them for online purchases.
It’s worth remembering that you can only spend the money that is on the card. There is no overdraft or credit facility with prepaid cards, so when you are shopping online, you will be paying upfront.
4. Shop In-Store With Ease
You can use prepaid cards in shops anywhere car payments are accepted.
Most are contactless, so you can make quick payments without entering your pin. It is important to remember that most places require a PIN to be entered when spending over £100.
5. Use a Prepaid Card for Holiday Money
Prepaid cards are great for travel. You can load a set budget before you go and stick to it while abroad.
Some travel prepaid cards also let you hold foreign currencies, which helps lock in exchange rates and avoid overspending.
How Suits Me Can Help
At Suits Me®, we don’t only offer our account holders a prepaid card, but an account that comes with a whole variety of banking-like features so our account holders can manage their money with ease.
With a Suits Me® account, you get:
- A contactless prepaid card
- Access to your online account and mobile app,
- The ability to send and receive money in the UK and internationally via a partner in the Suits Me® app
- Access to our exclusive cashback reward programme, where you can get discounts with some of the best retailers across the UK – all you have to do is use your prepaid card to make a purchase and we’ll do the rest!
Our accounts are designed for people who want something simple, accessible and flexible- without the barriers of traditional banking.
Frequently Asked Questions
Can I use a Prepaid Card for Subscriptions Like Netflix or Spotify?
Yes. As long as there’s enough money on the card, you can use it for most online subscriptions and recurring payments.
Can a prepaid card expire?
Yes. Like any payment card, prepaid cards have an expiry date, but you can usually request a replacement when it expires.
Are prepaid cards accepted everywhere?
Most prepaid cards are accepted anywhere that takes debit cards, but a small number of services may not accept them. It’s important to always check first.
