5 reasons to use prepaid cards
Protection against fraud
One potential advantage of prepaid cards is that they're not linked to your bank account. You can therefore use them to buy goods online, safe in the knowledge that a fraudster who managed to get hold of your prepaid card details could not run up credit at your expense.
It is, however, worth noting that Section 75 of the Consumer Credit Act does not offer any protection for prepaid card losses. So, should goods purchased with a prepaid card fail to arrive or prove unsatisfactory, you will only be able to chase the retailer – not your card provider – for a refund.
To ensure you are properly protected, choosing a Visa-backed prepaid card that offers cover under the Chargeback system could therefore be a sensible option.
Jessica Bown, financial journalist at moneysupermarket.com offers tips and advice on all things money-related to help iVillagers make the most of their hard-earned cash.