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MSE Senior Researcher, mainly responsible for looking after, and keeping up-to-date, ‘hard-core’ financial articles such as credit cards, savings and loans.
If you spot a rate change that we haven't already mentioned or added into articles or tips, Please send me a PM about it
There's a prepaid cashback debit card that Martin hasn't mentioned yet, but is definitely worth a look if you're a householder. It gives you a 5% cashback on everything you buy, in-store and online, at a whole range of shops such as Sainsbury's, Argos, Boots, Comet, Debenhams, Dorothy Perkins and loads more. You can even get 5% cashback on fuel at Sainsbury's filling stations. And you can use it anywhere else that accepts MasterCard transactions, though without the 5% cashback.
It's not for everyone, though, as you have to have to be a customer of Utility Warehouse to qualify for a card. If you are a customer, this is how it works. There's an application fee of £9.99 per card (you can have up to 5 for different family members, as long as they are 13 or older) and a monthly charge of £1, which is waived for the first 6 months. There is also a 35p charge whenever you top up your card, which can be done by phone, online or automatically (either every month or whenever your balance drops below a chosen amount).
But it seems, from reading Martin's article, that these charges compare very favourably with other prepaid cards - plus you get the 5% cashback from lots of retailers, so you should be able to get back far more than you pay out in charges. The cashback is credited to your monthly bill with Utility Warehouse, so you can't spend it but instead it's used to reduce you energy and telecoms bill. So it could be well worth while switching your phone, broadband, mobile, gas or electricity to Utility Warehouse in order to get a cashback card - and reduce your utility bills.
If you want a quick link, go to the Referrers Boardand search for Cashback Prepaid debit card.
Thanks for your post. Actually, this card came to our attention earlier this week, and we've been working to get the full details and add it into our full comparison against all the rest of them.
If it makes the grade, it'll go in the article this week.
Cheers
Dan
MSE Senior Researcher, mainly responsible for looking after, and keeping up-to-date, ‘hard-core’ financial articles such as credit cards, savings and loans.
If you spot a rate change that we haven't already mentioned or added into articles or tips, Please send me a PM about it
The cashback is credited to your monthly bill with Utility Warehouse, so you can't spend it......
That is the first catch with this "cashback card" - you don't actually get any cashback!
On top of the fees mentioned, you have to join the u w club (£1.72 to £2.94 a month) and get at least one utility from them - but their gas/electric is usually more expensive than the rest (they don't do dual fuel discounts, and don't have cheaper on line tariffs). So the "cashback" actually just reduces the cost of services you could get cheaper elsewhere.
In addition, there are risks (which they point out to you when signing up for the card, and make you agree to):
1) Any money you load on to the card is at risk if utility warehouse go bust - you have no protection, and would lose your money.
2) Although the card is branded as a mastercard, there is no protection from the Financial Services Compensation Scheme which is not applicable to the card, and no other compensation schemes exist to cover losses claimed in connection with the Card.
2) Although the card is branded as a mastercard, there is no protection from the Financial Services Compensation Scheme which is not applicable to the card, and no other compensation schemes exist to cover losses claimed in connection with the Card.
You get exactly the same ability to do a charge back with Mastercard's of all types (just not Maestro) as you do with a Visa card, debit or credit. So if a supplier goes bust and you used any Mastercard you can apply for a chargeback on the basis that the contract was never fulfilled. It is exactly the basis on which Cashplus offer "section 75 like" protection.
The utility warehouse is specific about there being no protection:
Quote:
By activating your Card you accept these Terms and Conditions and confirm you understand and accept the risks highlighted in clauses 2(b) and 18(d) of this Agreement.
Quote:
2(b): In the unlikely eventthat we become insolvent, the e-money on your Card may lose its value and become unusable, and accordingly you may lose your e-money.
18(d):
The Financial Services Compensation Scheme is not applicable to the Card. No other compensation schemes exist to cover losses claimed in connection with the Card. This means for example that your only protection for Internet, mail order or telephone transactions is your statutory protection under the Sale Of Goods Act and other applicable legislation. Where the Card is used in such situations and we are unable to resolve thedispute, you will be liable for the transaction.
This has nothing to do with the FSCS, it is Mastercard's scheme for chargebacks (and card acceptance) and is never mentioned in the T&C's of any agreement. Look at one for say a current account with a Visa debit card it does not say "you can ask for a charge back if...". Most people in the bank themselves wont know what you are talking about, indeed Matrin has started a campagin to highlight the issue.
Any Visa or Mastercard branded card whether prepaid, credit, or debit card transaction is subject to a possible chargeback at the customers request.
In fact reading through them, you can also do a chargeback on a Masetro card for good not deliverred (which is not common knowledge at all) if it was placed though e-commerce, I assume that means on-line.
I got a prepaid MC a while back. Its a payzone one. I was concerned about gaurenteed money on my card. They sent a group email to all their customers saying that all monies on the card were guarenteed up to £10,000 (the max limit).
Quentin, compensation and getting your money back are not one and the same thing. James
Edit: in addtion Mastercard rules stand for all Mastercards, companies cannot pick and choose. They even dictate the size and exact colour of the logo as printed on the card and on stickers for shop windows. They have it down to an art form.
I got a prepaid MC a while back......They sent a group email to all their customers saying that all monies on the card were guarenteed up to £10,000 (the max limit).
The card we are discussing is a utility warehouse club card. The uw operates its own ts + cs, which clearly state any money you have loaded on your card but unused would be lost should they (uw) go bust. It seems prepayments you make are in fact paid to the uw's account, rather than held in a secure account by a bank.
The uw run their ts + cs along different lines to most utility companies (eg, if you build up a large credit balance due to your monthly direct debit payment being higher than needed for your energy useage, then you find that you agreed to this balance being non -refundable! The only way to get it back is to sign up with another supplier and switch away!)
There is also a difference between a bank going under and losing your money because the are not part of a compensation scheme, where you get x pence in the pound and a Mastercard chargeback due to a card transaction (which is a contract) being broken by one party.
Mastercard rules stand for all Mastercards, companies cannot pick and choose.
The uw make it clear that the Mastercard aspect of their card has no benefit for their cardholding members:
Quote:
Your rights and obligations relating to the use of this Card are subject to this Agreement between you and us; you have no rights against MasterCard International Incorporated or their respective affiliates.
You are misunderstanding what is being said there.
They are sayying you cannot sue Mastercard themselves, you have no "third party" rights to sue them.
A chargeback is processed by merchants who process Mastercard transactions, i.e Barclays Merchant Services, BMS is not Mastercard. The money comes back from the person you paid it out too who did not keep to their side of the contract, it is not Mastercard who pay it out.
Uw cover that too, and make you agree you have no rights beyond as I already pointed out:
Quote:
your only protection for Internet, mail order or telephone transactions is your statutory protection under the Sale Of Goods Act and other applicable legislation. Where the Card is used in such situations and we are unable to resolve thedispute, you will be liable for the transaction.
I posted about this to point out there are catches to this so called "cashback" card.
If someone is interested in a prepay cash card, then maybe now they are aware of what the uw make you agree to, they will look at another provider who doesn't have the disclaimers they include.
The key there is "we are unable to resolve the dispute" that means we put through a chargeback and it gets declined as it was outside of the scheme rules/we made a mistake/you made a mistake/you waited too long etc. etc. Then they have been unable to resolve the dispute and yes you would be liable. There are rules to chargebacks thats why I posted the link to the merchant rules.
Pls be nice to all MoneySavers. There's no such thing as a stupid question, and even if you disagree courtesy helps. Take care over copyright. Use excerpts and links rather than copying long text. This site asserts copyright on all comments posted on the board.
Pls be nice to all MoneySavers. There's no such thing as a stupid question, and even if you disagree courtesy helps.
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