Traditionally, prepaid cards have been targeted towards low income families and marketed as an alternative payment mechanism by dedicated prepaid card providers, alternative financial service providers, supermarkets, etc and banks have been slow to adopt prepaid cards which may be attributed to their desire to avoid cannibalising their existing credit based product revenue.

The US market has also seen prepaid cards being subject to additional scrutiny from regulators due to criticism from various consumer groups who have complained about hidden costs and fees buried in terms and conditions.

Ryan McInerney, chief executive officer of consumer banking for J.P. Morgan Chase, stated “what we did is design a product for customers who want a low-cost alternative to traditional checking accounts and banking accounts, and for people really looking for the control and flexibility of the design that we put in place”.

Some view the launch of prepaid cards by J.P. Morgan Chase as an attempt to move less profitable customers into new accounts with the aim of improving earnings in a business that has taken a pretty significant  hammering due to new regulations.

Todd Maclin, Head Chase’s Consumer and Business banking unit said “when we get out of the overdraft business, we also get out of the check business, which means we get out of the paper business, which means we also get out of a lot of processing, which means we save a lot of money”.

A number of banks in the UK have tested the prepaid card market in the past but these have traditionally been prepaid travel cards with Euro, Dollar and Sterling prepaid cards being offered and these have been mostly restricted to existing customers and not really designed as a tool attract new customers. Some examples would be the Clydesdale Bank and Yorkshire Bank prepaid cards which were originally launched by PrePay Solutions (formerly PrePay Technologies) in 2006 but take up of the cards has not been wholsesale across the industry and traditionally FX houses and Foreign Exchange companies such as Caxton FX, Fair FX, MoneyCorp and myTravelCash have performed better in the FX market by offering a more friendly solution with excellent FX rates which can be availed by all consumers.

Amit Sharma, Senior Prepaid Consultant at leading UK comparison site Prepaid365.com, commented “it is interesting to watch the American experiment as the US market has traditionally taken the lead on prepaid innovations through the year and the best innovations have been adopted by providers on this side of the pond. However, it stands to reason that part of the reason why consumers are turning to prepaid cards with basic bank account facilities such as those provided by Secure Trust Bank or perhaps Thinkbanking is because of the growing frustration and mistrust towards banks and banking products and it would be interesting to see if banks can convince customers to walk back through the door with an enhanced product menu that includes prepaid cards; interesting times ahead”.

Related posts:

1. Prepaid Credit Cards are a Scam! NOT!
2. Financial Services Authority takes over Bank and Building Society Regulation
3. Prepaid Credit Cards with Basic Bank Accounts
4. Paying Bills With Prepaid Credit Cards
5. Lending To Businesses Falls at its Fastest Rate in Two Years

Prepaid Buzz

The further advantage is that prepaid cards are an enabling all inclusive payment solution and recipients do not need a bank account and can typically use the funds disbursed via the card at millions of locations worldwide subject to their scheme – such as MasterCard or Visa.

Corporates using prepaid cards as a disbursement mechanism typically use them as a payment solution to cover a variety of recurring business expenses including employee travel costs and supplier purchases. Due to the very nature of prepaid cards, funds on the card are limited to those loaded by the company and hence there is reduced liability and reduced exposure to fraud. There is also better monitoring and control and an avoidance of issues typically experienced with employee credit cards. It is also possible to restrict card access at certain merchants.

Some of the councils in the UK already benefiting from such disbursement solutions include the London Borough of Merton, Nottinghamshire County Council & Bury Council.

VISA and Obopay

Visa and Obopay, a leading mobile and instant payment solutions provider, recently announced a collaboration to enable near real-time payment solutions for disbursing electronic funds to a prepaid card.

This agreement will allow Obopay to offer its partners the ability to disburse funds from their corporate account directly onto a Visa prepaid card which they can provide to a payee. This I likely to have a significant impact across the industry with benefits being seen across the insurance, incentives, payroll, business expenses, charities and government disbursements sector. These are likely to be extremely beneficial in instances where recipients need to have access to funds immediately.

David Schwartz, vice president of product and corporate marketing for Obopay commented “By introducing a Visa prepaid card solution, Obopay offers near real-time disbursement capabilities that allow our customers to avoid the time delay of issuing cash or check”.

For more information about prepaid cards, their benefits and their use in business and consumer sectors, visit http://www.prepaid365.com

Related posts:

1. Visa To Launch New Digital Payment Service
2. Visa And Samsung Launching Contactless Payment For Olympics
3. Guide to Prepaid Credit Cards
4. Best Large Prepaid Provider Award for PCT at 2011 Prepaid365 Awards
5. LAUNCH ALERT: The Daddy of all Prepaid Cards – T24 Black Prepaid VISA Card Reviewed

Prepaid Buzz

A survey of more than 1,000 technology experts has found that the majority believe contactless payment will overtake cash and credit cards in this decade.

The survey found that more than 60% of technology experts felt that paying with smartphones will be widespread within just eight years.

Smartphones use Near Field Communication to make contactless payments, in which a sensor in the device and another in the payment terminal trigger a transaction.

The technology is becoming increasingly popular, with technology companies such as Google introducing the payment method.

Technology giant Apple is also rumoured to be developing its own contactless payment app, which is expected to use Near Field Communication. There are also a number of start-up companies looking to capitalise on the growing popularity of the payment method.

In the US, more than 10% of mobile phone users have made a payment using their smartphone, a trend that is set to continue this year and into the future.

“NFC is going to play a much more prominent role, a major role in m-commerce,” said Chris Silva, an analyst with Altimeter Group.

The timeframe for the growth of contactless payment has been the subject of much debate, as credit card companies are reluctant to allow different payment methods into the market.

“There was a relatively strong notion that it’s something that may not happen really quickly due to the reluctance of incumbents to cede their place in the market,” added Mr Silva.

There has also been concern about the security risks associated with contactless payment, as there have been a number of cases of users having their card details stolen.

It was revealed recently that users of Google Wallet could have their details hacked, thanks to a flaw in the payment technology.

It was found that anyone with a Google Wallet-enabled device can change the PIN by clearing the data on the app. When a new PIN is asked for, the hacker can access the funds in the account the smartphone is tied to.

Barclay’s contactless credit card has also come under fire recently, as it was discovered that details on the card could be stolen by simply waving a smartphone in front of it.

Prepaid credit cards are a good way to bypass most security risks, as they are not tied to a bank account and only have a specific amount of funds on them.

Related posts:

1. Contactless Card Holders in Danger of Electronic Pick-pocketing
2. Orange launches Orange Cash Contactless Prepaid Card
3. Free Added Value Payment Protection with Freedom Eagle Cashcard
4. Best Large Prepaid Provider Award for PCT at 2011 Prepaid365 Awards
5. Police Fear Rise In ATM Fraud During Olympics

Prepaid Buzz

It was found that the average male credit card user will spend 15% more with his plastic than the average female card user will.

The research also revealed that men spend more than women on typically male things, such as cars, sports and hardware.

Conversely, women were found to spend more than their male counterparts on typically female things, like clothes, healthcare and pharmaceuticals.

The gender-stereotypical spending is an interesting finding from the research, which was conducted by the Card branch of Santander.

It found that, when it comes to credit card spending, men are all about their cars. Men spend an average of 113% more than women on car rental with their credit cards.

Other car-related spending included at car accessory outlets, where men spend 108% more than women; and repair shops, where men spend 68% more than women.

It was also found that men spend more on keeping their car running, spending 63% more than women on credit cards at the petrol pumps.

Other areas where men out-spend women with their credit cards include on sporting events, hotels, dining at restaurants and drinking in bars.

But there are plenty of areas where women outdo the men on credit card spending. In true gender conformation, credit card spending is all about shopping for women.

The research found that women spend 83% more than men with their plastic in clothes shop, while also spending 38% more at department stores.

As well as dressing well, women also want to look and feel good. It was found that they spend 87% more than men at pharmacies, and 20% more on health care.

But it’s not all clothes and home furnishings; it seems women are taking on the weekly shop – spending 12% more in supermarkets than men.

“It’s revealing that people seem to conform to gender stereotypes in their credit card usage, with women using their cards more in clothes shops and department stores and men spending more on their vehicles, in sports shops and in bars and restaurants,” said Adam Mussert, from Santander Cards.

Credit cards can be useful for consumers, with some offering a range of rewards. But they can also be a dangerous spending tool, forcing people into heavy debt.

A prepaid card is a far more sensible option for both men and women. By loading a set amount on a prepaid card, there is no danger of over-spending or acquiring debt.

No related posts.

Prepaid Buzz

The National Institute of Economic and Social Research have estimated that Britain’s economy grew by 0.1% in the three months up to February.

This is a much better outlook than the previous report, which showed that the British economy contracted by 0.2% in the three months up to January this year.

In terms of trade, Britain has seen a recent improvement in exports. After the recession, exports from the UK were down – driven partly by a weakened demand from other countries.

But that has started to change, and British exports to China are growing at a rate of 20% per year.  Net trade also made a positive contribution to GDP in the fourth quarter of last year – driven by a growth in exports and a decline in imports.

Manufacturing is another area helping to pull the British economy back to its feet. Manufacturing output was found to have increased by 0.1% in January this year.

While this is less of an improvement than was hoped for, indications suggest it will continue to grow for the rest of the quarter. The fall in inflation will help the sector, as manufacturers will be paying less for raw materials.

A slower rate of inflation has also helped the retail industry, which had an unexpectedly strong Christmas period. Inflation now stands at 3.4% – a positive sign for the year ahead.

The UK retail industry may have benefitted from a positive period of spending over Christmas, but this doesn’t mean that savvy British shoppers will stop looking for new ways to gain value on the high street. Prepaid cards are becoming increasingly popular.

An innovative new addition to the prepaid credit card market may offer exactly that. The new Pockit prepaid card, a unique MasterCard which was launched this month, may be able to help shoppers get the most from their spending.

Danny Jatania, CEO of Pockit, explains the benefits of the new card:

“Everyone wants the best value out of their shopping now, not just people on a budget. While prepaid cards are useful to keep a lid on overspending, consumers from all sorts of backgrounds are using them.”

The new Pockit Prepaid MasterCard offers savings on purchases from partners including Marks & Spencer, Talk Talk and Aviva.

The card is available on a pay-as-you-go or monthly contract basis. The pay-as-you-go option has a one off-fee of £5 and 45p for each additional transaction. The monthly contract will cost you £3 per month.

No related posts.

Prepaid Buzz

What are Prepaid Cards

Prepaid cards, as the name suggests, can actually be used to purchase something provided it was loaded prior to usage but they cannot be used to access additional funds like most credit cards can provide.  Prepaid cards contain the money you load into them and nothing else.  If you have used all the money in the prepaid card then you need to add funds to the card so you will be able to use it again. There are different providers of prepaid cards that you can choose from and availing the services of such provider will depend on the terms and conditions of the provider.  You can actually consult with the said provider on how you can get the maximum benefit of the prepaid cards especially when you send money to India.  Know that availing a prepaid card comes with a fee and it may vary among different providers.  It is wise to know more about the provider that you have in mind before availing their services.  The good thing about a prepaid card is that anyone can have it and the minimum age that can avail in most providers can be as low as thirteen years old with parental consent.

In availing prepaid cards, there’s no need to check for the credit standing of the applicant just as long as he or she can provide for what are required in the application form like some fees to be paid and perhaps some pertinent documents that the provider will need like some personal information regarding the one applying for the card.  Prepaid cards are available almost anywhere and remittance can be made through the use of these prepaid cards.  The processing is easy and will not take a long time before you can have your own prepaid card.

To send money to India using the card, you simply need to reload the card.  Once the card has been reloaded it will be ready for use.  Choosing a provider that can give you the most benefits will be a wise decision on your part.  In order to make an intelligent decision in choosing the right provider, you can actually read the reviews regarding the providers that you have in mind then choose the right one for you. Some cards allow you to share money with shared balances whereas others allow you to send money from one linked card to the other.

Find out more prepaid credit cards such as the First Premier Prepaid MasterCard and how prepaid cards can be used for money remittance at Prepaid365.

Related posts:

1. Prepaid Money Transfer Cards: Redefining Money Transfer Across the Globe
2. Top Tips for Using Prepaid Travel Money Cards

Prepaid Buzz

Such things will not happen to prepaid MasterCard.  When you load some funds on your prepaid card to be used in online purchases, make it a point to load only the needed amount for the purchase so that even if your card is cloned, the culprit won’t be able to get anything from your card because there will be no more funds to withdraw .  The prepaid card is not a credit card that can provide additional funds when needed which will be include in the next billing statement.  Another good thing about a prepaid card is that you won’t be able to go over the limit that you have set for yourself in order to monitor your expenses.

Availing a prepaid MasterCard won’t subject you to a credit check since you will be the one to provide the funds for it prior to its use.  Just make sure that you are availing the correct card for your self and that you did understand very well the terms and conditions set forth by the card company even if it is a prepaid card.

One of the biggest benefits of a prepaid card is that you can purchase at any store (that accepts it) and even buy online using the card without having to worry about over spending.  There will be absolutely no interest that will ever accrue because purchases can only be drawn against your money or the money that the prepaid card still contains.  You can expect that there will be no debt to pay since no credit was extended and availed in the first place.  If the card will be used to avail some cash advances, the transaction will be denied.  There are also no monthly payments since all purchases were deducted directly from the prepaid card’s account. You can also pay bills online using your prepaid card.

Find out more about MasterCard Prepaid Cards such as the First Premier Prepaid MasterCard at Prepaid365 and why these prepaid cards are great for online shopping.

Related posts:

1. Safe and Secure Online Gaming with Prepaid Credit Cards
2. First Premier Prepaid MasterCard Sales Increase by 230%

Prepaid Buzz

They allow an average individual to enjoy the benefits offered by a credit or debit card. People having low credit worthiness can depend on these credit cards to perform various types of transactions such as making reservations for car rentals, hotels and purchasing items online.

Prepaid credit cards are now being used for Money Transfer, Travel, Gaming, Online Shopping, Payroll and Expense management, Privacy and Gifting.

Prepaid Cards in the Gambling Arena
Despite the fact that consumers are extremely wary of sharing their credit/debit card details online, over 6 million people indulge in online gambling every month. The main reason for the anxiety around credit or debit cards is that these cards tend to be linked to a bank account which means there is a greater risk of loss to fraudsters. Prepaid cards can be an excellent alternative in these circumstances. As a prepaid credit card, it is not linked to any bank account and a scheme branded (MasterCard or Visa) prepaid card can be used for making purchases on gaming and gambling sites.

The usual age checks apply which is great but one of the biggest advantages in this era of social responsibility is that you can only spend up to the value of money loaded onto the card. This means better control and no overspending even if you want to whilst gambling online. In addition to providing a different secure payment method, prepaid cards also provide online gamers and gamblers with an excellent way of staying in control.

Find the right prepaid card for you
Find out more about the benefits of prepaid cards for gaming and gambling at Prepaid365 or visit our consumer prepaid card comparison section to find the best prepaid card to suit your needs.

Related posts:

1. Prepaid Credit Cards with Basic Bank Accounts
2. O2 Announce Prepaid Credit Card Launch
3. First Australian Dollar MasterCard Prepaid Credit Cards Launched by PFS
4. Best Way to use a Prepaid Card
5. Travelex Supports British Judo With Prepaid Credit Cards

Prepaid Buzz

With prepaid cards, you load funds onto your card and use that money to make purchases and get cash – you are not borrowing money from a bank or other financial institution. Read on if you are interested in finding out what prepaid credit cards are all about.

Credit on Prepaid Credit Cards

Also known as a Prepaid Debit Card or just as a Prepaid Card, a prepaid credit card is similar to a regular credit card, except that there is really no credit limit as such and that funds available on the card are actually the funds that you have loaded on to the card. So essentially a prepaid credit card is not really a credit card at all.

Prepaid credit cards typically come with a whole set of fees attached typically relating to issuance, loading, usage and cash withdrawals. Depending on the plan you choose, you can get a pay monthly or pay as you go prepaid credit card. These cards are especially useful for those with bad credit or a non existent credit history and in such cases, the benefits of prepaid credit cards far outweigh any of these potential extra charges.

Getting Prepaid Credit Cards

The important thing to remember is that a prepaid card does not give you access to credit – so you do not really need to undertake and pass any credit checks as such. This also means that even if you have a non existent credit history, bad credit or even have CCJ’s, you are still more than likely to get approved for a prepaid credit card.

However, as with most financial services, you still need to provide details to verify your identity and your address (typically a passport, driving license and a utility bill with your UK address should suffice). Most UK based prepaid card issuers can verify your details online to provide you with instant approval and your prepaid credit card would come through in the post in 7-10 days.

The Benefits of Prepaid Credit Cards

Well, the main benefits are that prepaid credit cards are available to all regardless of their financial status. There are no credit checks or bank accounts necessary in order to apply for these prepay credit cards. Prepaid Credit Cards allow you to spend without the fear of debt or fraud at millions of retailers online or on the high street.

You can even use them to withdraw cash from ATM’s. Prepaid cards can be MasterCard, Maestro or Visa branded. Prepaid cards with the MasterCard brand can be used to make purchases in-store, online and over the phone at over 28.5 million locations worldwide and to make withdrawals at over 1 million ATM’s worldwide

Click here for more detailed information on the benefits of prepaid credit cards.

Using Prepaid Credit Cards

As there is no credit on Prepaid Credit Cards, you cannot get into debt but also there is no interest payable on the card which makes prepaid credit cards an outstanding proposition for all. You can get prepaid credit cards for all kinds of things which include

• Travel
• Shopping
• Money Transfer
• Gaming
• Payroll
• Banking (if you do not have a bank account)

and much much more.

Find out more about Prepaid Cards

Visit Prepaid365 to find out more about prepaid cards and prepaid credit cards and review and compare prepaid cards.

No related posts.

Prepaid Buzz

Typically, you need to add funds on the card before you can access those funds and most prepaid cards usually have some fees attached to them. Furthermore, they really do not provide any credit whatsoever. So if you are looking for a credit facility or access to additional funds, these cards really are not for you. So with the fees, it may almost seem that you are borrowing your own money at a cost – so the overriding question would be – why would anyone really need prepaid credit cards?
Why You May Benefit From Prepaid Credit Cards

1. Prepaid Credit Cards Provide Access: Not everyone qualifies for credit and debit cards because of their credit history or their social status or because of CCJ’s. Prepaid credit cards can provide such individuals with access to electronic payment devices in the form of prepaid credit cards which thus gives them access to services and purchase options which they would not have normally had access to otherwise. This means that these individuals now have access to online shopping, internet purchases, discounts for electronic purchases and other such similar offers.
2. Ability to Improve Credit History using Credit Builder and Credit Booster Tools: Whilst this has been quite prevalent with Prepaid Credit Cards in the US, this is something which is becoming more popular in the UK as well. A few prepaid card providers now have relationship with credit reporting agencies such as Experian and Credit Expert and provide features which allow cardholders to build their credit history. Of course, misuse can result in you actually making it worse too.
3. Prepaid Credit Cards Provide Enhanced Security: Prepaid credit cards usually have lower limits when compared to credit and debit cards and they are not linked to your bank account which means if your card security was comprised, the losses would be limited to the amount that is usually held on the card. So in essence, they do limit your exposure to fraud.
4. Prepaid Cards Can Help With Budgeting: Prepaid Credit Cards can be used as a tool to help teenagers and kids learn to budget and manage their finances responsibly. Also great for avoiding impulse purchases as funds on your card are limited.
5. Prepay Cards are Great for Travel: Foreign Exchange rates on prepaid travel cards are usually 8-10% better than what you could get on the high street or the airport which means 10% more spend money in your pocket.

Why You Do NOT Need a Prepaid Credit Card

Well, if you have an excellent credit history and already have access to electronic payment resources such as credit and debit cards, you may decide that prepaid credit cards is really not for you. Perhaps you are more risk taking and less risk averse than the average individual and given the lack of that need for access, you may just decide that Prepaid Credit Cards simply do not tickle your fancy.

Find out more about the benefits and uses of prepaid credit cards and find the best prepaid credit cards at Prepaid365 – the UK’s leading prepaid card comparison site. Review and compare prepaid cards across the UK.

Find the right prepaid card for you
Visit out consumer prepaid card comparison section to find the best prepaid card to suit your needs. If you wish to use a prepaid card for your business, visit our business prepaid card section.

No related posts.

Prepaid Buzz