Pre-paid credit cards

**Russ** · 06-08-2005, 12:21

http://www.sky.com/skynews/article/0...402913,00.html

On the surface they seem like a good idea - but don't we already have debit cards?

**Matt D** · 06-08-2005, 12:24

Quote:

Originally Posted by Russ D

On the surface they seem like a good idea - but don't we already have debit cards?

Can't have a debit card though if you don't have a bank account...

Quote:

Originally Posted by that link

This would let them tap into millions of consumers who cannot get a bank account or have poor credit histories, reports the Financial Times.

**Russ** · 06-08-2005, 12:26

Spose....

clarie · 06-08-2005, 12:30

Some 2.4 billion people in Britain do not have bank accounts...wow...population certainly has shot up since I did geography at school.

danielf · 06-08-2005, 12:31

Quote:

Originally Posted by Russ D

Spose....

Presumably, unlike debit cards, these can also be used for offshore internet transactions. In fact, they could cut the risk of fraud as you could buy one for a single transaction.

Roy MM · 06-08-2005, 12:33

Damn good idea, you can keep a better eye on your spending when you know the card has a limit.

ian@huth · 06-08-2005, 12:43

How can they be called credit cards if they don't allow you credit?

Quote:

However, the cards do not have overdraft, credit or cheque facilities.

They must work just like a debit card as they can only debit money from an account which has a positive balance.

Graham · 06-08-2005, 13:06

Quote:

Originally Posted by Russ D

http://www.sky.com/skynews/article/0...402913,00.html

On the surface they seem like a good idea - but don't we already have debit cards?

<sarcasm>What a brilliant idea!</sarcasm>

Instead of the card companies waiting for someone to spend money before they can get the benefit of the interest on it, now they get you to pay *up front* and get your money right away so they can cash in on it!

Meanwhile the customer's money is tied up in the card and when they *do* spend it, the shop has to pay the regular commission to the credit card company, so they win again!

Of course that also means that many businesses will decline to take these cards for small purchases or charge extra for the priviledge...

**Russ** · 06-08-2005, 13:08

Of course, I'm speaking from the consumer's point of view....

Jules · 06-08-2005, 15:06

I think it is a great idea for people that can not get credit and debit cards but want to save money by buying off line etc

punky · 06-08-2005, 16:33

Quote:

Originally Posted by Graham

<sarcasm>What a brilliant idea!</sarcasm>

<snip>

Or, it could just be a simple, and full proof way for children to have all the benefits of having a credit card without having the rigmerole and responsibility of having a proper one. Not only is it convenient, it is safe. Kids would no longer have to carry cash on them, just the pre-paid credit card. If it is stolen, the cash is safe. It is much more flexible than a debit card, you can transfer them to whoever you like. It is like a store gift card that can be used to buy anything.

I guess you think calling cards similiarly are an evil con conjured up by big corporations to bleed people dry?

Quote:

Meanwhile the customer's money is tied up in the card and when they *do* spend it, the shop has to pay the regular commission to the credit card company, so they win again!

Of course that also means that many businesses will decline to take these cards for small purchases or charge extra for the priviledge..

Whilst you think Visa and Mastercard should do this out of the goodness of their own heart, I for one recognise they are a business and running this scheme actually costs them money. Therefore they will need to recoop that cost, and hopefully, make a bit of money for themselves.

Some shops already have a minimum spend for CC, so it isn't like much is changing. However the prepaid CCs will deal with small amounts so the commission for smaller amounts would be structured so it is more advantageous for the shopkeeper to take up. It would do Visa/Mastercard absolutely no use if shopkeepers won't honour them for transactions, would it?

Shaun · 06-08-2005, 17:02

Those with a poor credit rating would be better off opening a secured credit card with Capital One. there is a credit check and they use that data to decide on what deposit to charge you.

It also helps build your credit rating back up as your payment history is reported back to the agencys!

An excellent all round card except the interest rate (29.9%) but if you pay it off each month that shouldn't bother you

Tuftus · 06-08-2005, 19:21

Quote:

Originally Posted by Roy MM

Damn good idea, you can keep a better eye on your spending when you know the card has a limit.

My card has a limit... I cant spend more than it...

Angua · 06-08-2005, 19:21

Didn't they trial something similar in Swindon (or somewhere similar) called Mondial IIRC?

**Maggy J** · 06-08-2005, 20:07

I actually like the idea.I refuse to have a CC but I would like something like this for using online...