Features of Pre-paid Debit Cards
 

A prepaid card is a payment card that can be loaded with money by you or someone else.

A prepaid card looks just like a normal credit or debit card, with a card number, signature strip and company branding. But prepaid cards are unlike credit cards, which provide you with a line of credit. They are also very different from debit cards that are linked to a bank account with an overdraft facility. This is because you can’t borrow money with a prepaid card - you can only spend the money you have loaded onto it.

You can use a prepaid card in the same way that you would use a debit or credit card. It’s easy to use your card. To buy something, this is all you need to do:

At the shops
Simply hand your card to the salesperson at the till.

Telephone shopping
Read out the card details over the phone.

Mail order shopping
Complete the order form, including the card details.

Internet shopping
Input the card details at the ‘check-out’ step of your Internet purchase.

When you use a prepaid card, the money is immediately taken from the amount loaded onto the card - not from a line of credit or a bank account. As long as you have enough money available, you can continue to use your prepaid card to buy what you need.

When the amount remaining on your card is low or at zero, you may be able to reload (or ‘top up’) your card in a number of ways, such as:

- cash top-up at post offices or convenience stores,
- funds transfer from a bank account,
- on-line through an Internet account.

Please check with your card provider for details.
 
Who can use a Prepaid Card?
  • An individual who has less than perfect credit or does not qualify for a bank account.
  • A person who does not want to carry too much cash.
  • Backpackers and Seasonal workers
  • A person who does not wish to pay credit card interest charges
  • Parents who want to give their children secure and limited spending capabilities.
  • Cardholders who would like to budget their finances.
  • Overseas Travellers as a replacement for travellers cheques
  • Employees who wish to disperse funds onto these cards, decreasing  payroll distribution costs, simplifying bank reconciliation,  reducing fraud and eliminating lost cheque cancellation and replacement.
  • Low-cost money transfers  It’s simple to add an additional card which may be sent to a relative or friend within Australia or overseas.
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