Prepaid credit card - do you still get buyer protection?

m33r4

I was mulling over the idea of getting a pre-paid credit card for a trip to Spain. If I pay for services abroad with this card and the services are not delivered to my satisfaction or there is an issue with a purchase and the seller refuses to cooperate/refund, will the pre-paid credit card provider come and help with the dispute like say Barclaycard does?


Thanks.

benjus

These cards are not credit cards - there is no element of credit involved. So you don't have any protection from the Consumer Credit Act.

However, the chargeback system from the card network should still be available, but it is not something you have a right to under law.

See http://www.which.co.uk/money/credit-cards-and-loans/guides/prepaid-cards/prepaid-card-pros-and-cons/ - interestingly, that article implies that Chargeback is only available for Visa prepaid cards. AFAIK Mastercard offers a chargeback system, so I'm not sure why they say this.

m33r4

Thanks for the reply ^^^

I therefore don't see the benefit of such a card other than a simpler way of carrying cash if I don't get protection as a consumer.

stilltheone

m33r4 wrote: »

Thanks for the reply ^^^

I therefore don't see the benefit of such a card other than a simpler way of carrying cash if I don't get protection as a consumer.

:rotfl: Was worth a laugh.

Amber_Babies

We've recently returned from Majorca (touristy area) & bought a prepaid card thinking it would be easier. No such luck!!!

We went for a week & ate in several restaurants, only one restaurant accepted it. The supermarket accepted it once then the following day it wouldnt without a passport then the 3rd time wouldnt accept it at all.

You cant change it back to sterling upon return to UK so we ended up drawing the money out over a period of a few days at the ATM which cost 2 euros per transaction.

I might consider it if I was going to US / Canada etc where cards are more common but definately wouldnt recommend it for Spain after my experience.

HTH

Kate

stilltheone

Amber_Babies wrote: »

We've recently returned from Majorca (touristy area) & bought a prepaid card thinking it would be easier. No such luck!!!

We went for a week & ate in several restaurants, only one restaurant accepted it. The supermarket accepted it once then the following day it wouldnt without a passport then the 3rd time wouldnt accept it at all.

You cant change it back to sterling upon return to UK so we ended up drawing the money out over a period of a few days at the ATM which cost 2 euros per transaction.

I might consider it if I was going to US / Canada etc where cards are more common but definately wouldnt recommend it for Spain after my experience.

HTH

Kate

This is why I never advise the purchase of a foreign currency card.

iceburn

Amber what card did you have for example we had the travelex and travel escape card when we went to France. Travelex was useless but the escape was great as was the aa one. Hence using the aa and escape in few week time and throwing travelex in the bin

shaunskankdog

Mycashplus do. I have several prepaid cards, and taken them to Thailand, Cambodia, Vietnam, Singapore, Bali, Spain and Italy...never a problem. With cashplus it is free.
Google mycashplus. I just I hope I read it right. Apologies if misunderstood.

lcbjcomc

As far as I know cashplus offer protection

stilltheone

shaunskankdog wrote: »

Mycashplus do. I have several prepaid cards, and taken them to Thailand, Cambodia, Vietnam, Singapore, Bali, Spain and Italy...never a problem. With cashplus it is free.
Google mycashplus. I just I hope I read it right. Apologies if misunderstood.

You have to pay for these cards.

ERICS_MUM

Another "issue" with these cards is that the money held on them is not covered by the Financial Services Compensation Scheme as it would be if the money was in your bank account. If the card issuer should go bust you could not claim back your money from the FSCS.

I don't know if the cards are "protected" under any other law or scheme though - perhaps someone can shed some light ?

The other thing is how do you keep track of your remaining balance on the card ? I manage my bank account very well but my spending patterns are very different when I'm on holiday and I find it difficult to keep a running total !

I would always worry about losing the card or damaging it.

Sorry to sound like a Luddite ! I know lots of people use them and like them but I'm very cautious about money when I'm abroad.