Prepayment Mastercards, Optimum, Pockit, Etc., Help !

mrbrian

Please can anyone offer any advice on the subject of prepayment Mastercards ?.

For several years now I have been using a Virgin Money prepayment Mastercard for all of my online shopping and more recently, in the covid lock-down period as a contact-less card in some shops however, I have just been advised by Virgin Money that they are withdrawing this product completely from the 20th of September leaving me with no means of shopping online as I don't have a bank account due to being retired and living on benefits.   I have no idea why Virgin Money are withdrawing this card, for me it is utterly brilliant, I can get all my online shopping with it, they only charge around one percent fee per transaction, I can top up at any Post Office or corner shop with Paypoint and I don't need a bank account with this.  I urgently need to find a replacement for this card that doesn't involve opening a bank account.

Virgin Money have recommended I apply for the somewhat similar 'Optimum' prepayment Mastercard which I have tried to apply for however, before I could even complete the 3 stage online application form I was declined each time at the first stage (name, address and telephone number) and, despite clearly stating on their website "no credit check", when I spoke to them, they referred  me to a credit reference agency called Trans Union who were only able to say it could be because I had made several failed attempts to complete the online application form ?.   Can only say Optimum were most unhelpful, it seemed as though they weren't even interested in sorting it out or helping in any way.

Next I applied for a 'Pockit' prepayment Mastercard, got the online application form completed first time, then sent them email copies of my identity and address documents which they subsequently requested but haven't heard anything back from them since I applied over four weeks ago.  Pockit Customer services are appalling, dozens of attempts to call them over the past two weeks, hours wasted on the phone, endless recorded messages, never get an answer, and if you press 2 on your phone keypad you supposedly get a call back, except when the customer service agent calls back, they hang up as soon as you answer.  I have also emailed them several times to ask for an update on my application and only ever get an outdated automatic reply with some waffle about their accounts being frozen by the Financial Services Ombudsman which I know is an issue that has already been resolved some time ago, no proper answer to my enquiry from a customer service representative.  I thought that these days such appalling poor service was illegal in the UK ?.  Does anyone know anything about what is going on at this company ?, am I ever going to receive a Pockit prepaid Mastercard ?.

I should point out that I am of good financial standing and see no reason why I would ever be declined for any card, especially one which I have to load up with cash before I can use it to buy anything, a prepayment card is not a credit card, I am not asking for any credit facility etc.  Without one of these cards I will basically be excluded from all internet shopping and contact-less payment shops.

Any ideas how or where to get another prepayment card which doesn't involve opening a bank account, as I'v not had a bank account for years and I just don't need or want one, all I need is a prepayment card for internet shopping to replace the one I currently have?.

Thank's

Gerry1

You need to open a basic bank account.

jonesMUFCforever

If you don't have a bank account how do you get paid?

Emmia

Surely a bank account with a debit card is the answer here? If you find it hard to go to a branch, or want something separate from your normal bank, then one of the internet only banks - Monzo, Starling etc., could be an option for a card (account) that you "add money to" when you need it...  but isn't your main account.

[Deleted User]

Apply for a credit card or current account. Most banks will also offer Post Office access to deposit funds including Virgin Money and Starling. 

If you just want a prepaid card with contactless, you could look at Revolut but you can't add cash directly to it. 

AstonSmith

jonesMUFCforever said:

If you don't have a bank account how do you get paid?

He says he's on benefits so perhaps he's using one of those withdraw-only Post Office Card Accounts.

mrbrian said:

I should point out that I am of good financial standing and see no reason why I would ever be declined for any card, especially one which I have to load up with cash before I can use it to buy anything [...]

They aren't actually checking your credit history/rating. They're using the information held with credit agencies to confirm your address and identity details as part of the Know Your Customer laws.

I have to agree with the sentiment of the thread so far in wondering why you're invested in using prepaid cards rather than opening a free bank account. You might not have needed or wanted one for years (even though you could have avoided prepaid card fees), but you really ought to reconsider.

jet01

If the OP really wants a prepaid card instead of an actual bank account then Monese probably have the lowest fees. For their basic plan you just pay a one of charge to have the card delivered and then UK card transactions are free. The basic plan gives you a combined allowance of £200 per month for cash withdrawals and Paying in cash via PayPoint. Also allows DD and standing order payments to be made from account without charge. Go over the monthly allowance and you pay a 2% fee. Paid for plans increase the monthly allowances. Should work out cheaper than Pockit for most users. I think you need to have a EEA passport or driving license for ID to open the account but they don’t use CRAs to verify identity as they are primarily aimed at people new to the UK. 

He would really be better off with a basic bank account though as per all the posts above because then you can avoid most charges altogether for the kind of usage he wants. However, most banks will use CRF data to confirm identity when opening accountS online due to Know your Customer requirements but in some cases you can get round this by taking ID and proof of address into a branch. 

eDicky

mrbrian said: I don't have a bank account due to being retired and living on benefits.

This is no reason for not having a bank account...

The_Urbanite

I have a lot of experience with a lot of these cards.

Stay well away from them if you're looking for a serious main account. These firms come and go like the wind, charge you for services a proper bank offers for free and have nasty tendencies to block accounts and access for days and weeks on end.

The people who operate the Virgin Money card are the same people who operate Optimum.

If you don't want a standard bank account for whatever reason then maybe look at a basic account with one of the big banks.

jim1999

I'd recommend reading the MSE guide: https://www.moneysavingexpert.com/banking/basic-bank-accounts/

Perhaps the Virgin Money M Account might be worth asking about, given that you're somewhat familiar with Virgin Money?

MinuteNoodles

Who the hell doesn't have a bank account in the 21st Century? It's almost impossible to do without one and you'll certainly be making your life a whole lot harder than it needs to be, an example being having to faff around going to the post office to take out your benefits and faff around with pre-paid cards. Not only that but you're costing yourself money by not being able to pay things by direct debit. For example you pay more for gas and electricity, and not just a little bit more, by paying by quarterly billing. Just open a bank account and have your benefits paid into it, they'll give you a debit card and you can save yourself time and stress having to go to the post office every week. If you need cash you just ask for cash back when you pay by debit card at your local shop.