Prepaid Cards Guide Discussion Area

Anthorn

eDicky wrote: »

I don't have a problem with a prospective bank initially offering the limited prepaid service, pending issue of their full banking authorisation.

That's where we differ: I don't like a "bank" actually turning out to be a prepaid card. Such "banks" are two a penny at the moment. But hey if you don't mind being conned it's your money and your decision. If they do actually turn out to be a real bank and get FSCS protection I might change my opinion.

SnowTiger

Anthorn wrote: »

That's where we differ: I don't like a "bank" actually turning out to be a prepaid card. Such "banks" are two a penny at the moment. But hey if you don't mind being conned it's your money and your decision. If they do actually turn out to be a real bank and get FSCS protection I might change my opinion.

That's harsh. Monzo is work in progress. The bank cards they send out even have BETA on them.

They're upfront about what they offer and what they plan to offer: https://monzo.com/about/.

And https://monzo.com/faq/:

What is Monzo?

We are building a bank for people who live their lives on their smartphones. For people who want to get things done in a click and who don’t see the need for branches and cheque books. We’re focussed on building the best current account in the world and ultimately working with a range of other providers so that Monzo can be an intelligent hub for your entire financial life.

[...]

When do you launch?

Until we get our restrictions lifted in 2017, we’re live with limited-edition Alpha and Beta cards (Monzo MasterCard® Prepaid Debit cards). These cards can be topped up and used at cash machines, in-store, online and at contactless terminals. They will allow us to test features with real users like you and iron out early bugs.

[...]

Is my money safe with Monzo?

Once our banking licence restrictions are lifted, your money will be protected by the Financial Services Compensation Scheme (FSCS) meaning that all your money up to £75,000 is guaranteed by the British Government.

During our Alpha and subsequent Beta testing periods, your money will be held in a separate, protected account by Wirecard, our issuing bank. In the unlikely event Wirecard were to become insolvent, your funds would be protected against any claims made by creditors. All card transactions are processed by the MasterCard network and are protected by MasterCard rules.

Additionally, we guarantee that you will never lose money as a result of any mistakes or problems we make while testing.

The important, legal bit: Your money will be held by Wirecard Card Solutions Ltd. (WCDS) who are authorised by the Financial Conduct Authority (FCA) to conduct electronic money service activities under the Electronic Money Regulations 2011 (Ref: 900051). The card itself is an e-money product and although it is a product regulated by the Financial Conduct Authority, it is not covered by the Financial Services Compensation Scheme. In the unlikely event that Wirecard Card Solutions Ltd (WDCS) becomes insolvent, your funds may become valueless and unusable, and as a result you may lose your money. However as a responsible e-money Issuer, WDCS ensures that once it has received your funds they are deposited in a secure account, specifically for the purpose of redeeming transactions made by your card. In the event that WDCS becomes insolvent funds that you have loaded which have arrived with and been deposited by WDCS are protected against the claims made by creditors.

Con:

• Persuade (someone) to do or believe something by lying to them
• An instance of deceiving or tricking someone

Where's the con?

Anthorn

Monzo, previously Mondo, do keep saying they are building a bank but not a lot is happening there apart from having a banking licence. In comparison, for example, Starling has not yet released it's new app-based current account and is therefore not yet open for business and has a similar banking licence and is already a member of FSCS. What that difference tells me is that Starling is on the way to becoming a real bank but who knows about Mondo/Monzo. All we know about Mondo/Monzo is that it says it's building a new kind of bank but so is Tandem. The con is Mondo/Monzo tout themselves and are touted by others as a bank but in reality they are not a bank. The optimistic amongst us may add "not yet" to that last statement.

I'll concede that Mondo/Monzo are a bank in the loosest sense of the word in that they store money but that's about it.

gregor123

Anthorn wrote: »

You miss my point: I would not top-up with £100 any prepaid card which doesn't have any kind of protection for my money whether it's FSCS or some other insurance scheme. Where the service goes bust it's a case of "Oops! Never mind eh" and my money has been spirited away into the wide blue yonder.

I've had Pockit for quite some time and Soldo is new but I trust it but I don't top-up with £100 on those either.

My other objection specifically regarding Monzo is that it touts itself as a bank and it is supported on MSE and elsewhere as a bank but it is in fact predominantly a prepaid card! Pretty much unique though in demanding a £100 initial top-up in order to get the card in the first place!

you are spot on! they arent banks! they are prepaid based current accounts. Like you, i would be raising my eyebrows if they started asking for an initial load of £100

maybe it should be pitched to the real housewives of cheshire??

gregor123

Anthorn wrote: »

Monzo, previously Mondo, do keep saying they are building a bank but not a lot is happening there apart from having a banking licence. In comparison, for example, Starling has not yet released it's new app-based current account and is therefore not yet open for business and has a similar banking licence and is already a member of FSCS. What that difference tells me is that Starling is on the way to becoming a real bank but who knows about Mondo/Monzo. All we know about Mondo/Monzo is that it says it's building a new kind of bank but so is Tandem. The con is Mondo/Monzo tout themselves and are touted by others as a bank but in reality they are not a bank. The optimistic amongst us may add "not yet" to that last statement.

I'll concede that Mondo/Monzo are a bank in the loosest sense of the word in that they store money but that's about it.

im always weary of new money products - i like going for an established provider... I wonder if the owner of icount got on to Monzo/Mondo as his surname is similar - or if it is another facility of his?? im going to check it out now

Anthorn

email received from Monzo today: Apparently they've renamed Black Friday, "Monzo Top Up Day" and I'm at "the top of our waiting list, so top £100 credit now in the app and you'll get your card on Tuesday."

ROFL as if.

Anthorn

eDicky wrote: »

Your point was clear enough, I didn't miss it. My point is that if you're so nervous about having £100 on the card, you can simply take it out of an ATM. Funds can be loaded to Monzo again instantly from any debit card when you have use for it, which at least doesn't cost £1/£2 as for Soldo.

I don't have a problem with a prospective bank initially offering the limited prepaid service, pending issue of their full banking authorisation.

Well, eDicky, you do have an apparent penchant for potentially risky financial products which don't have guarantees. First there is Revolut which currently has cards and accounts in suspension leaving some of its customers up the creek without the proverbial paddle which I have warned about several times.
http://forums.moneysavingexpert.com/showpost.php?p=71669432&postcount=620

Now it's Monzo "Bank" which very clearly identifies itself in its own FAQ as a prepaid card without any guarantees whatsoever. What's next? How about the Mickey Mouse Bank:
https://www.disneybaby.com/products/mickey-mouse-bank/

Anthorn

Advised by email:

Pockit are on a mission to build a product which is transparent and fair for all our customers.

You’re currently able to pay into your Pockit account by debit card for no charge. From 01 February 2017, a 99p fee will apply when paying in by debit card.

We’re making this update because debit card deposits come with a cost to us. Adding a fee will help us continue to offer this method of making deposits in the long-term

This will make Pockit just 1p cheaper than for example Soldo for debit card deposits but it still has the edge due to no monthly fee.

eDicky

Anthorn wrote: »

What's next? How about the Mickey Mouse Bank:
https://www.disneybaby.com/products/mickey-mouse-bank/

Hey, that's nice. But I prefer the DUMBO Bank, down the page, even more cute...

I didn't receive the Pockit email. I've rarely topped up though...

tonytonyh

APS - Cashplus - A warning!

Hello there, I signed up specifically to share my experience with the Cashplus gold prepaid card (APS Group). I had the card for a good few years, gradually using it for more and more things such as direct debits, standing orders, salary and even the occasional iAdvance loan (where they lend you up to £500 on a short term basis). Throughout, I always stayed within the balance, paid my fees etc on time and actually got used to it being a pretty useful account. Then suddenly, out of the blue, they sent me a letter saying that the "review team" had looked at my account and, in line with their terms and conditions, they were closing it in six weeks time. Considering I couldn't think of any reason why they would do this to a long term loyal customer, I called them up and asked...

"Sorry, but we can't give you any information"

They were able to confirm that the account would indeed be closed, but were unable to offer any explanation whatsoever and that it was being closed in line with their terms and conditions. Now I checked, and it is in line with their terms and conditions - so they are quite entitled to do so - but it's a complete mystery why they would seemingly randomnly turn their back on a good long term customer that hasn't put a foot wrong. Incidentally, they still charged me a "card renewal fee" and a monthly subscription just before they closed the account

Now it's not the end of the world for me because my credit is OK and I've also got regular current accounts to fall back on, but this could be catastrophic for people who properly rely on the account for direct debits and standing orders etc who have been turned away by the high street banks. I just thought it was a really odd thing to do as well without explanation.

Wondering if anyone else has experienced similar?

Cheers

Tony H