PrePaid Credit/Debit Cards ?

Hi,

With us both being older and slower these days, one of our concerns when out shopping is that either our physical credit cards or our phone wallet cards are lost or stolen and that we might loose more than just money.

Equally leaving card details on sites like Amazon does make us a bit concerned if the account was hacked /scammed which seems to happen quiet a lot.

Not being that up to date with all the modern payment methods have only just heard about Pre Paid debit/credit cards where you can just load in quiet small amounts and only that balance can be spent if someone stole it.

From what we can see its an ideal answer to our concerns, but just wanted know know if there are any drawbacks we may have missed ?

 

I can't answer your question @ricky101 , but I won't have the card that you can just 'show' to the machine for payment. Many years ago, a friend told me about an occasion when she was out with another friend, and their card was nicked. She noticed quite quickly, but by the time the bank was notified, the thief had already spent a couple of hundred pounds on it.
I don't know if things have improved, but I believe the amount you can tot up on them has increased. I assume that if you notify your bank, any withdrawals after that will be null and void, but I don't know about the initial amounts until that happens.

It sounds like the pre loaded card could be a good idea, unless you were going to [or wanted to] spend more than you have on it, and then couldn't add more in time.

 

I was under the impression all credit cards have a limit, which I think you can set yourself, not sure about debit cards but it must be possible to set a limit, I dont keep lots of money in the current account so that kind of limits it I guess.

 

The information in this link may help you @ricky101. There may be fees involved, depending on the provider, and no legal protection for transactions over £100.

https://www.moneysavingexpert.com/credit-cards/prepaid-cards/

 

I use my credit card for everything @shiney, and paid off every month by direct debit, unless I absolutely need cash for something, which is very rare now. I'm just very careful about protecting my purse when I'm out.
I think a lot of people don't know about the protection for anything at plus £100 though.

 

I struggle to remember the number for my debit card as I use it so rarely!
I had to get cash last year for one of the car parks when I was walking, as the machines aren't always reliable for using a card. Stood for ages trying to remember it!

 

I only use a credit card for online purchases, and then its often via Pay Pal.
Debit card when shopping in person.

Online is the only reason I have a credit card.

I tried to pay for a holiday some years ago with my credit card and although it was within my limit I had to go through all kinds of stuff on the phone before they allowed the payment, it just came up as unusual and they needed to know it was me.

Should add, if you have a mobile app, you can put a stop on any card with just one click if you lose it.

 

Thanks all for the replies.

Appreciate these cards do not offer the same consumer protection as a full credit card.

It was more that we could just add a hundred or so at a time to cover our day to day local shopping so that if it was stolen the thief could only spend whats left on the card and could not run up thousands before we had chance to report it.

Suppose we could ask for a lower limit on the full credit card but they do not like doing that and say if we did , then we cannot change it again for over a year.

 

I suppose you have to weigh up what's most important for you @ricky101, and how comfortable you are about carrying your cards etc.
For women, carrying a bag is always more risky as it's an obvious target, and it's why I prefer to use a zipped pocket in a jacket whenever possible, especially an inner one. However, that doesn't help if you're paying online.
I only use a credit card that gives me something in return too. No point otherwise, although I had it as an emergency when I bought my first property, mainly for anything unexpected with the car, as I needed that for work.

 

I use a debit card online for savings and I know the daily limit is £25,000, but there are safeguards - you have to have a pin number sent to you on your phone and also I have to type in my email address. But in a shop I don't know if there is a limit (just your whole bank balance maybe!). I did ask the bank once and they said they may telephone you, but not sure if that's later or while you're in the shop (if you have a mobile with you). And we don't use contactless anyway for security reasons.

 

Thank all again,

Its nice to be able to get others practical views on things like this.

Thought the Pre Paid cards might be a simpler safer way, but now not sure if thats the case.

Hope you have all been watching the various BBC morning Scam Watch programs this last week ? Been some shocking cases but some useful advice, particularly the one about the Land Registry fraud and how you can set up an Alert service with them to prevent it.

Stay safe !

 

I can see prepaid cards have their uses, for instance if going to a gym or swimming pool and using lockers that may or may not be secure or something else where you need a bit of cash. Having a phone not connected to any bank might be an idea too, when out and about.