How to Use Prepaid Currency Cards
Using a prepaid currency card is safer than cash and without the dangers of overspending that can come with credit cards. Knowing how prepaid currency cards work can increase the convenience of carrying a prepaid currency card and minimize some of the annoyances that sometimes accompany them.
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Things You'll Need
- Prepaid currency card
- Cash
- Card registration information
- Valid email address
- Valid mailing address
- Valid telephone number
- Internet access
Instructions
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Purchase the card. You will need to make an initial deposit to the card in cash at the time of purchase. The card limit is set by the amount of funds deposited to the card.
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2
Register the card. This is a safeguard against theft or loss. Some merchants will require you to register the card at the time of purchase, while others allow the user to register the card online.
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3
Set a personal identity number (PIN) for the card. This will allow you to use the card for cash withdrawals at ATMs. If you plan to use the card abroad, establish a four-digit PIN.
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4
Make purchases with the card. A prepaid currency card usually carries a Visa or MasterCard logo and works much the same way as a Visa or MasterCard debit card; and purchases are deducted from the card limit immediately. The difference is that the card is not linked with your bank.
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Check the card balance. This can be done online or by telephone. Many merchants have established toll-free telephone numbers to allow users to monitor transactions and keep track of the card balance. Merchants may send statements by regular mail or by email.
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Reload the card as needed. This can be done through the merchant where the card was purchased. Reloading the card can also sometimes be done by transferring funds from your bank account.
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Tips & Warnings
Signature purchases where the customer signs a receipt or the purchase is processed as a "credit" transaction are usually covered by the protections and dispute process put in place by Visa or MasterCard for debit card transactions. Purchases where the customer enters a PIN are not covered.
Keep the card even after all the funds are spent or the card has expired. You will need it to process returns for any merchandise purchased using the card.
To make a purchase that exceeds the available balance of the card, alert the merchant in advance that you will be using two payment methods for the transaction.
Prepaid cards designed for travellers often have additional benefits, such as lost luggage protection and travel assistance services.
Merchants such as gas stations, hotels and restaurants will often place a "hold" on the card for an estimated amount of the entire balance. This hold is usually larger than the amount actually charged. The amount of the hold is not available for the card holder to use until it is released, which can take several days.
Car rental agencies and hotels often will not allow reservations to be made with prepaid currency cards; however, they can be used to make the actual payments.
Fees for prepaid currency cards are often high, especially fees for ATM withdrawals.
Cards bought with foreign currency denominations can often only be reloaded in the same currency denomination.
