Quidity and other PrePaid cards

BigSteveLondon

Hi all.

I saw a piece in The Daily Mirror yesterday about a prepaid card they are supporting called Quidity. It's run by Maestro and the basic point is rather than credit or debit cards, you put money on them to use online, abroad, or wherever. Just like a debit/credit card it can also be used in an ATM machine to withdraw cash.

I have been searching all the forums and articles and haven't found MArtin talking about these types of cards.

A few things concern me for example there is a transaction fee when ever you use them. A fee for withdrawing the cash. A fee for anual renewal. A fee for statements, etc, etc.

BUT i like the idea of having this card for online use rather than having something like a debit card linked to my bank account. Identity fraud would no longer be an issue as it's only whats on the card that is stealable.

Does anyone have an insight to these Pre Paid Cards they can share?
Do all the big company's do them?
Are they just a big con?

Thanks
Big Steve

nomoneytoday

Why would you want to pay someone to spend your own money??

BigSteveLondon

Exactly!
But i do like the security issue of it not being linked to a bank account. And the fact i know whats on it and i have no interet etc. But it seems that these benefits are eroded once the fees come into play.
I did a search thru Google and found out some more PrePaid cards like Extreme and Blue Corner:
http://www.moneyexpert.com/CreditCards/PrepaidCreditCards.aspx
(note the web addrss! that's gotta be passing off surely!)

It seems that these cards are an extension of the Gift Cards done by retail outlets. A popular 1 apparently is the Starbucks/Visa PrePaid card called Duetto, where you earn Starbuck points to spend instore.

For someone like me who has cut up all his cards and has bad credit now also, they seem ideal.

I just need to b sure of the advantages or disadvantages, and get 1 that can maybe benefit me elsewhere in the market. Maybe Tesco will do 1 where you can get club points or something therefore also giving discounts on the weekly shop.

Oh i dunno lol.

Psycho_mantra

I think you guys have misunderstood prepaid cards based on what the media's perception is.

Prepaid cards are not for everyone; they are for those who do not or cannot have access to other cards. So fi you got a terrible credit rating and cannot get a card which restricts you from spending online - get a prepaid card....

or if you are worried about getting into debt, then get a prepaid card which does not allow you to go into debt.

I think the quidity card from the mirror is great for some folk. I think the new splash plastic card is even better https://www.splashplastic.com; as they have removed annual renewal and transaction fees altogether and if you want to read the benefits of the card as well as the fee structure.

The media makes prepaid cards sound bad as that is their agenda - controversy sells!! I dont think you can categorically say that a prepaid card is good or bad without using it based on what your circumstances and means are!

Also the company that does the splashplastic card is also behind the Debenhams gift card, the ticketmaster gift card, all the arcadia brands gift cards (topshop, topman, miss selfridge, wallis, burton, evans,dorothy perkins, outfit), the western union travel card and the Mirror's Quidity card.

In fact, as you already know, the oyster card is a prepaid card! So prepaid cards just get bad press because the media knows its a hot topic to jump on!

I think prepaid is a great idea but thats just me and probably cuz i have had a prepaid card for over 4 years and with the new fee structures (splashplastic especially), i have not seen the need to apply for a credit card even though I am now eligible to do so.

Hope this helps!

BigSteveLondon

Fanntastic info. Thanks for that.

I read up on the Splash card. It's issued by Clydesdale Bank by the way. Seems ok, except a few ponts:
• although there may not be an annual fee, there is a 99p monthly maintenance charge which equates to the same thing lol.
• when you put money on your card there is a 30p charge for every £10 you put on.
• if you make a transaction outside the UK there is a 2.75% service charge of the total amount. That will definately affect online sales which is 1 of the things i wanted to use it for.

For me PrePaid sounds great, but i need to know about the fees etc to decide if it makes financial sence.

I'm surprised Saint Martin hasn't written about this yet as there are so many types of cards with so many different fee structures.
I trust the guy, so i'll wait a while to see if he does. Maybe i'll email him.

Thanks again.

Psycho_mantra

Hi stevie... I agree with you, surprised Martin hasn't spoken much about prepaid cards yet as there is definitely significant debate..

I guess the one thing I would reiterate is as I said before "Prepaid cards are not for everyone" even though the card companies might try to sell them as a universal option - they simply are not.

I think it is also worth clarifying that the 2.75% you mention for making purchases outside the UK is when you actually use the card in a foreign location -- like i did in Barcelona last year and again in Milan this year. It does not affect online purchases.

I am 100% sure of that cuz most of my spendin is done online...

You have mentioned other monthly and top up fees.. i think for someone who has a debit card - these are fees not worth paying but for someone who does not, this is a drop in the ocean..... if you spend £200 online on ebay - it would have cost you £207 pounds to do so - but without the prepaid card - you might not have been able to make that purchase anyway

I think the bottom line is: Get a prepaid card if you are either adamant that you dont want to get in debt or if you do not/cannot have access to other cards.

:T

that's it for now

BigSteveLondon

Thanks for clearing up that online thing m8 :beer:

You make some good points.

I think these cards will suit me, especially as it's also a discipline with regards finance lol. DON'T SPEND WHAT YOU DON'T HAVE! I've had credit cards & overdrafts since uni & having been spending what i don't have regularly lol. So now that i've got it all under control & have no credit cards or overdraft facility, these pre paid cards would def help with online purchaces where i don't want a link to my bank account (like my debit card). Currently i only use money i have made from selling items on Ebay, to purchace other items. That way i don't dip into my account. BUT a lot of sites don't accept Paypal, so unless i can find what i want on Ebay i'm stuffed. A PrePay Card could sort me out because i could put my earnings on there and spend wherever i like.

Cheers.

Psycho_mantra

Anytime Buddy. There is a lot of rumour and hearsay about prepaid cards and the media just loves criticsing these prepaid cards.

In effect, the media never takes the angle that their negative criticism means that there will be some folk out there for whom prepaid represents an ideal solution who end up being misinformed and hence do not go for a prepaid card but then thats not their agenda or concern, i guess.

Anyway, have fun with your prepaid card if you go down that route.

cheers

Psykicpup

Despite paying £7 a month for a 'plus' account my bank took away my debit card (my fault entirely not complaining) - the account came with extras such as car recovery, holiday insurance, mobile phone insurance that sort of thing - now I dont drive & dont have a passport & only have a cheap mobile so I changed account, saving the £7 & applied for a Prepay Mastercard which costs £4.95 a month (or £1 per transaction if you dont use it much).
I thought in comparison with the banks charge this was good value - at least I'm getting SOMETHING for my money each month.
I also like the security of using it online as its not linked to a bank account.

hurrah

Useful site with info on this subject.

http://www.which-prepaid-card.co.uk

Psycho_mantra

Hi Hurrah,
The site still has outdated info about a few cards in terms of fees - but its useful just to know the cards that are out there and then the links help in applying for the cards.

Best to review fees on the supplier website as the info is old on a few cards.

thanks