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Author Topic: are there any benefits to pre-pay credit cards?  (Read 1924 times)

Offline moonzero2

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are there any benefits to pre-pay credit cards?
« on: 13 March, 2009, 10:51:39 AM »
following duffs question on the subject, what are the benefits of what seems to be a debit card you pay to use?

Is there any better consumer protection and if so what; and would this apply to all or individual cards?
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Offline Duffield1

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Re: are there any benefits to pre-pay credit cards?
« Reply #1 on: 13 March, 2009, 10:53:54 AM »
As I understand it, all credit cards, pre-paid or not, are regulated by the Consumer Credit Act, which would make the credit card company jointly responsible for any non-delivery of service or product.  So, if your holiday company gets bust, a prepaid credit card company would be liable in the same way as a conventional credit card.

The advantage is that you don't ever get into debt - you can only spend what you have, which is my new matra for life!

Offline siasl

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Re: are there any benefits to pre-pay credit cards?
« Reply #2 on: 13 March, 2009, 10:59:11 AM »
aye - it's a credit card so all purchases are insured.

Personally I prefer a regular CC with a direct debit mandate to pay off the lot every month - although I can appreciate that this can make it awkward to budget (I've been caught short once or twice!)

Offline robinsamuels

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Re: are there any benefits to pre-pay credit cards?
« Reply #3 on: 13 March, 2009, 11:25:20 AM »
I use a pre-paid credit card for online purchases. That way I know there is no way anyone can run up bills if my card details get passed to a scammer.

But, I was told when I took it out that there is no protection under the consumer credit act, as these cards are not regulated under the act. CCA only applies if there is an element of credit in an agreement and these cards do not allow any form of borrowing. Bank issued debit cards may give protection, but only if you use one which increases or creates an overdraft, as the overdraft is covered by CCA.