Many people look for an easy way to make payments online and in stores without having to carry cash around with them. One of these solutions is using a prepaid card. If you are considering a prepaid card, then take five to read our guide and find out how safe and secure they are.
What is a Prepaid Card?
A prepaid card is a type of bank card that is preloaded with money that you can use to pay for goods and services online, over the phone or in-store. There are many different options to choose from and people tend to get them to help with budgeting and to save having to carry cash around, which is far less secure.
If you use a prepaid card, you will also not be able to spend more than what is on the card as they don’t tend to have overdraft features. To continue using your card, you will need to top it back up with funds before you start to shop again.
How Safe is it to Use?
It is normal to worry that a prepaid card is less safe than a debit card, but this is not true. Prepaid cards are as secure as debit cards as they are PIN protected and you cannot release funds from them without successfully entering a PIN. those prepaid cards that are contactless enable, it is required to enter your PIN upon first use of the card and after 5 consecutive uses of the contactless feature in a day.
When you choose a prepaid card company, you should look for one that offers purchase protection so that you can claim if your item never arrives or if you have any issues with it when it does arrive. Choosing a prepaid card is a secure method of carrying money with you at all times, and you can order a replacement card if you lose yours without losing your balance.
Why Are Prepaid Cards A Good Choice?
In addition to it being a secure option, there are also other great reasons to choose a prepaid card. Take a look at our list of positives to help you make a decision:
- Some allow you to set transaction limits so that you are only able to spend a specific amount each day.
- You can leave the cash at home or avoid having to go to an ATM to withdraw funds as your money will be available on your card.
- You can use it abroad without needing to withdraw money or exchange it.
- You can use prepaid cards as gifts to securely send money to your loved ones.
- You can give your children prepaid cards and top them up with pocket money to help them learn to budget.