The convenience of using prepaid cards is one of their major attractions. You can load cash onto them or have funds transferred onto them and use them to pay for goods or services either in-store or online.
They are also a great option for people who have a poor credit report or who can’t otherwise open a bank account. There are no credit checks associated with taking out a prepaid card, so they are easy to get and easy to use.
However, with such ease brings along security concerns. Fraudsters are constantly on the lookout to scam people out of their money, and prepaid cards present them with another opportunity to do that.
Here are some top tips about how to use your prepaid card safely:
Never Write Your Prepaid Card Details Down
Each prepaid card comes with a card number, expiry date and CVC code on the back. These are the details you need to carry out many transactions online. If you keep your card safe, then you can keep these details under wraps too.
However, many people are tempted to write their details or record them somewhere else so they can refer to them if their card is lost or stolen. You should never keep such records as they can only increase the chances of falling into the wrong hands.
Don’t Save Your Prepaid Card Details on Public Devices
When shopping online, you’re likely to have your favourite stores, which you go back to all the time. Many online merchants give customers the option of saving their card details. While this makes it convenient for you to make a purchase each time you visit the website, you need to be careful.
You should never access websites that you have saved your card details on when using a public device or when using public WIFI. This leaves you open to being hacked and the details of your prepaid card falling into the hands of fraudsters.
Keep Your Prepaid Card Provider Aware of any Big Purchases
While prepaid cards are great for small purchases, especially contactless transactions, they are also a good option for bigger purchases.
However, when you intend to use your prepaid card to make a large purchase, it may be a good idea to warn your card provider. Any significantly large transaction can raise a red flag of suspicious activity, so giving your provider a heads-up will give them the peace of mind that nothing untoward is going on.
Be Mindful of the Protection Offered
Although prepaid cards can be a handy alternative to bank accounts, you need to understand how they differ. The Financial Services Compensation Scheme doesn’t cover many prepaid cards in the UK.
This means that whatever balance you have, the card isn’t covered if the card provider goes bust. The FSCS covers bank accounts for up to £85,000 if a bank or building society collapses.
Alternative Banking with Suits Me®
Although a Suits Me® card can sometimes fall into the prepaid cards category, it’s not just a prepaid card. It’s so much more. You don’t need to worry about having to go through extensive credit checks or provide proof of address, with lots of documentation.
With Suits Me®, you will not only receive a contactless Mastercard® debit card without any card purchase or delivery fees, but you will also gain access to online banking and a mobile banking app to manage all your finances.
Once you open an account with us, you’ll be able to access a whole range of banking features which will make banking in the UK a lot easier.