What is a prepaid card?
A prepaid card looks just like a normal credit or debit card, with a card number,
signature strip and company branding. But prepaid cards are unlike credit cards,
which provide you with a line of credit. They are also very different from debit
cards that are linked to a bank account with an overdraft facility. This is because
you can’t borrow money with a prepaid card – you can only spend the money you have
loaded onto it.
What are the benefits to owning a
prepaid card?
Our Prepaid cards can be used wherever MasterCard® cards are accepted. Anyone can
get one – no need for credit checks or a credit history. They are a great tool for
managing your money and helping you with your budget. There are no interest charges
on the card and there’s no danger of going overdrawn. Once the money loaded onto
the card has been spent, you can’t spend any more until you’ve reloaded it. Carrying
a prepaid card is safer than carrying cash as the card can be blocked if it’s lost
or stolen.
Contact us to start
your prepaid card scheme
Prepaid cards
It might look like just like a ‘normal’ credit card, complete with card number, signature strip,
Chip & PIN technology and branding, but a prepaid card is most DEFINITELY NOT a credit card.
It represents cash in ‘plastic’ form; it is not a ‘license to borrow’.
As such, a prepaid card must be loaded with cash before it can be used.
And because The Spectrum Financial Group’s cards use the MasterCard® system, they can
be used to withdraw cash at one million ATMs worldwide. They may also be used for telephone
and online purchases, as well as ‘face-to-face’ payments in the 25 million shopping outlets
worldwide bearing the MasterCard symbol of acceptance.
Fee-based products are making a comeback in the UK. As a result, prepay cards and, more recently,
managed banking schemes, are growing in popularity.
The intent to substitute cash with a vehicle that can be used with ease and appropriate
security has created an industry sector almost unknown five years ago.
In the US 32% of payments are made electronically, but only 21% in the UK.
There is a growing “sub-prime” population of Bankrupts, IVA and non-status individuals,
who find it increasingly difficult to get a piece of plastic that is more than an ATM
card – and the 2009 ‘credit crunch’ has added to this.
Anybody but anybody, regardless of their current financial circumstances or previous history,
can apply for a prepaid card. It carries absolutely no credit facilities and consequently
does not require credit checks as part of the application process.
A useful ally in helping individuals manage their money, it ‘polices’ spending – unless
sufficient funds are on it, purchases can simply not be made.
As well as providing a ‘safety net’ for spenders, the prepaid card is also a safer
way to carry ‘money’. Furthermore, if it is lost or stolen it may be blocked.
For more information download
the MasterCard® Prepaid Card
Guide