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uSwitch and prepaid debit cards
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Eugene Gold Thursday 24 June 2010 |
I read a very interesting comparison published by uSwitch.com about the costs of using credit and debit cards abroad. This is pretty topical just now with the summer holidays coming up and household incomes coming down.
There was the usual advice about shopping around for the best deals but it was the bit about pre-paid cards that caught my attention.
They also warned against carrying large amounts of cash. I was going to joke that bank charges are pretty awful but the pickpockets are worse. Then I read that banks pulled in £700 million from transaction charges and withdrawal fees in overseas holiday locations and begun to wonder who the real thieves were.
What uSwitch did was to introduce me to prepaid, pay-as-you-go debit cards which you load up with money for use in shops, restaurants etc., and can also use to withdraw currency from hole in the wall machines. The plus point being that, by only loading a small sum of money, you limit your losses in the event that the card is lost or stolen.
However, the really big advantage is that, in the event of a problem, it is only this one card that is compromised. You do not have to run around canceling cards and changing bank account pin numbers, etc. For those of you that have not had the experience of doing this from abroad, let me tell you that it is no fun at all.
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Mark Allen, London 25 June 2010, 04:49PM | |
Pay-as-you-go debit cards to use abroad sounds like a very neat idea. It horrifies me the amount of money banks steal from us by transaction charges and withdrawal fees overseas. | |
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Shelley, Dulwich 28 June 2010, 11:48AM | |
Pay-as-you-go cards sound like a great idea, but I find it hard to belive that they don't charge you for withdrawing cash. My Father had one of these type's of card and was charged for even using it to make a purchase, so beware. | |
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Kelly J, Newcastle 28 June 2010, 05:04PM | |
This sounds like a great way to stick to a budget. I tend to over-spend on holidays, with a pre-pay card you can’t spend anymore than you have loaded. | |
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Jane, Kent 28 June 2010, 06:06PM | |
Yes, I agree with the budgeting element of prepaid cards. If you are a parent, you might find prepaid cards a good option for children & teenagers - they are safer than cash and could help to teach your child about budgeting. If they are going away on holiday or a gap year they are a great idea too. | |
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Karen, Leeds 29 June 2010, 11:55AM | |
These prepaid debit cards are a very good idea for buying goods online, safe in the knowledge that a fraudster who managed to get hold of your prepaid card details could not run up credit at your expense. | |
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Chris Thomas, London 29 June 2010, 12:38PM | |
There are downsides to these prepaid cards. Unfortunately, with prepaid cards being a relatively new phenomenon the market isn’t too competitive just yet (though it is expanding). Consequently, there are still a lot of fees to watch out for. | |
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Andrew, Sevenoaks 30 June 2010, 12:46PM | |
There are a few cons to consider with using prepaid cards abroad: 1) Card application fees - There could be a charge for obtaining a prepaid card. 2) ATM withdrawal fees (which are often higher overseas) - Generally you shouldn't need to withdraw cash because it will be pre-loaded on to your card, but if you do you are likely to face charges. 3) Charges for top-ups - Will you be charged on each occasion you top-up - and does this depend on the manner in which you top-up? | |
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Davina, Edinburgh 1 July 2010, 01:25PM | |
These pay-as-you-go debit cards sound like a great idea and hopefully if the idea catches on then the banks that rip us of with everyday transaction charge may sit up and take note and reduce their charges. | |
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Jim Warren, Eltham 6 July 2010, 05:08PM | |
After reading this I will certainly shop around for a prepaid debit card with decent rates for my upcoming trip to Turkey. Just a bit wary of the potential fees involved when withdrawing cash abroad. | |
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