Prepaid Money Cards

[BENIDORM]

I have decided to try out the prepaid money cards, that is the pre-loaded 'credit card' type, that are now freely available throughout Europe.
The one that I am trying is from the UK, but in Euros, and is a 'Mastercard', I purchased it by post, from Tesco.

Now I intend to use it only for fuel purchases,hotels, restaurants and shopping, and if I did use it at an ATM for withdrawing cash, I would incur a charge of 3 Euros, which is the only charge that I would have to pay.

It would appear to be quite useful as I can top it up from my pre designated debit card,on the internet or by phone, and when I first loaded it, I found that the rate of exchange was about 1.5% in my favour, compared with High Street exchange establishments.

It was issued free and I also got a free second emergency card, which I can activate if I lost or damaged my first card.

I think it it quite a good idea, particularly when traveling as I know exactly what I am paying, instead of having to try and calculate rates of exchange on that particular day.

Now I would be interested to know if anyone else is using this type of card, and where did you obtain them from , and did you have any problems?

Regards,

Gordon

[lyndajo]

Like many other people here, I've picked up a lot of useful info on this site, and this is one of those gems. We have only ever used debit or the normal credit cards, but my partner does a lot of travelling, mainly through Spain, France and the UK. I will have a look at this. I would certainly be pleased to hear from others who use this type of card and the advantages it gives.

Thanks Benidorm for that.

[Devils Advocate]

What would be the difference/advantage over the system offered by Nationwide which a lot of people have switched to for foriegn use, whereby you top up your flexi card via your high yield e.savings account and incur no fees for withdrawels/swipes etc and an interbank rate of exchange.
DA

[BENIDORM]

Lyndajo,
I'll let you know how we get on with it...

DA,
I also have a Nationwide card, which I would use to draw cash on, however I think perhaps the pre- paid card is safer in respect that I can control it better and as I said I know exactly how much an item is costing me.It is always difficult to work out a daily exchange rate, which of course fluctuates so much.Also the pre-paid card I would consider safer in respect to fraud, as I can load it with smaller amounts.

I hope that my observations are of use to someone and I would be grateful if other members could pass on their findings, if they are already using such a product.
One point I forgot to mention , is that if you are going to obtain a UK card, then you will have to give a UK address.
And also I wondered if such a card would be useful to anyone receiving a UK pension, perhaps it could be a good way of monitoring and controlling a budget.

Regards,
Gordon...

[Paula]

There is a good write up on moneysupermarketdotcom about prepaid cards, including what questions to ask of the providers. There are a number that do have quite a few charges.

[BENIDORM]

Paula,
Thank you for pointing that out, I did actually look on the www.moneysupermarket.com site, and the Tesco card seemed to be the most reasonable to me...
The Tesco card also gave me 100 loyalty points, which equates to £4.00 when I exchange them for vouchers, which I then use to pay for my Channel Tunnel fares..This year I have had two return Channel tunnel trips, courtesy of Tesco..

Regards,
Gordon

[Paula]

Yes it would always be that when the supermarkets jumped on board that the deals would be significantly better. It will likely be the high st banks that have charges. I have been considering one for travel. I don't like using credit cards, and really do always carry far too much cash around for comfort. I think one of these would be useful when on a trip.

[Devils Advocate]

I'm going to have a look at this myself as it's new to me and sounds interesting.
Although Benidorm has stated the valid benefits of it, I still cannot at present see its advantage over his Flexi, but hoping there is. Surely you can counter the fraud aspect by not putting too much in the Flexi account and the other benefits seem similar.
I'm not knocking it though as I don't know anything about yet and will find out more.
Be very interested to hear of where it does score over the NW account.
Thanks
DA
PS I take it you can control it via the laptop, ie put funds in from a feeder account?

[BENIDORM]

DA,
I'm also not yet sure if it's of real benefit, as I stated, but thought it worth a try.
As a frequent traveler it will enable me to keep all of my traveling costs separate and I would feel happier about using it in service stations etc.

As stated previously you can load the card by internet or phone, I have loaded mine with my estimated total traveling costs plus 100 Euros, as a safe guard, you cannot exceed your limit, so no nasty excess charges, if you miscalculate.

I'm hoping that someone else will add their thoughts..

Regards,
Gordon

[Paula]

DA - I don't think the prepaid card would necessarily have any advantage for you over the Nationwide. NW is a very good deal. I think with Benidorm maybe wanting to keep his travelling expenses seperate etc, and the fact that Tesco have brought out a card with little charges plus the loyalty points, then it has attractions.
I bought one for my youngest daughter when she was on a long trip, to keep as a fall back security should any major problems arise. But at that time it did cost.
I can't think of anything that makes it more financially attractive than using a NW card. But I don't have the NW account.
Money saving expert always recommends the NW over and above everything for travel abroad. Abbey Zero credit card is also pretty good.

[Jool]

I looked in to this for a trip to USA but found that it was rather complicated if your lost the card or someone cloned it in an outlet and then cleaned the card account out - does anyone know if there is improved security and service in the event of a mishap?

[Devils Advocate]

Paula, well explained. I can now see an advantage as you say for keeping certain expenditures seperate from a main account etc...especially for travel expenses if you need the reciepts etc. for vat.(that is always my downfall losing them and having to trawl back).

Intesesting point Jools raises about it being complicated although to be fair setting up the full blown NW thing was a bit of a trial.
Only thing I can see that I don't like is the charge every time you withdraw from a hole in the wall (that's if I'm reading it right)...........I've never had a cash card yet where that happens, or at least one where you can avoid it happening.

DA

[BENIDORM]

Jool,
I think that they are probably more secure now, but of course it's like carrying cash, but you can have it stopped quickly, if lost or stolen, by phone and transfered onto the spare card that they give you, different number which is then activated.
What is foolproof nowadays ?, but at least it's another option, and as I said earlier I want to keep my traveling expenses separate, and I have only loaded it for one journey, so not so much money involved.Anyway I will report on it after my journey..

Regards,
Gordon