Citibank Prepaid Card and United Airlines

neilsolaris

Hi,

One of my friends is due compensation from United Airlines, and the airline told her that the refund will be loaded onto a Citiband Prepaid Card.

Neither of us had heard of it before. On initial investigation, it seems to me that if she were to redeem the card for cash (at an ATM for example), she would be charged a transaction fee, possibly £3. Also, I don't know the maximum she can withdraw, so it might take her more than one transaction. This doesn't seem fair to me.

Am I correct in assuming this card is not an ideal way for her to receive the compensation that she's legally entitled to? Does she have the right to insist that the airline refunds her by cheque or bank transfer?

Thanks for your help.

forgotmyname

Use it like a credit card in any shop etc. No charges to spending?

neilsolaris

Thanks forgotmyname. That was my first thought. She is owed 600 euros, and I think as long as she spends it within 6 months then she won't be charged a fee. But I still think a cash refund would be better for her.

System

There will be no charges only for usage in the currency of the card.

If it is issued in the US, it will not have a chip and some retailers in Europe have been known to refuse to take swipe only cards.

pvt

BA pay flight delay compo using the same method - pre-loaded credit card.

It works fine as long as you use it to buy stuff rather than want cash.

In the US they are quite common. As a promo I've been given cards with $10 pre-loaded, and they work fine in Starbucks, or to pay for Internet access online.

neilsolaris

Thanks for all your replies. I forgot to mention that my friend lives in the UK? Will it still be cost free for her to make purchases in the UK using the card? The airline is American, and the compensation is 600 euros, so I'm not sure at what stage the compensation is converted to her local currency.

Also, does anyone know anything about the legal position, in insisting that the airline compensates her in cash (i.e. cheque or bank transfer)? I can't imagine that if I booked someone to do some work for me, they'd be particularly happy with me issuing them with a prepaid credit card afterwards!

taxidad

I live in the UK and I have just been told that I will be receiving flight compensation from United Airlines in the form of a prepaid card. May I ask how your friend got on with it or did she request cash instead?

System

I don't understand why the compensation is in Euros for a US airline in the UK? Wouldn't United offer US$ or £ Sterling?

surrey_jim

Can your friend link the account to PayPal and send money to their bank account?

neilsolaris

Hi Surrey Jim, I'll look into that.

The reason I mentined euros Heng, is because the compensation is a European legislation. For flights that I delayed into or out of the UK, for a certain distance and for a specified delay to the destination (and other criteria), then then are legally obliged to compensate the passenger up to 600 euros. However, they may well exchange the money into pounds before issuing the card, but they might not. I'm not sure.

marleenv

Hi everyone


I have received a delay compensation prepaid card from United as well. Same as Neils friend, because of a delayed long-distance flight (thank you EU :-) ). It is very easy to get your money. I registered my card online, but I'm not sure that that is even necessary.
A few days after you receive the card, you get your PIN sent. Then, you can just go to the ATM and get your money. You can make 2 free cash withdrawals so that should do.
This was easy for me, because I live in the Euro zone and 600 euros can be withdrawn from the ATM. This might be a bit more difficult in GBP because of exchange rates.

It is also possible to link the card to PayPal, but if you want to send the money to your bank account, PayPal will take 4,5% + 0,35 euro of your payment. Alternatively, you can spend the money on-line but then it might be difficult to pay exactly 600 euros.

Long story short: just wait for your PIN and visit the ATM.