Pre-paid Debit Cards
 
Although they’re relatively new, prepaid cards are becoming more and more popular. Many stores offer ‘prepaid gift cards’ - you may have already used one! But prepaid payment cards aren’t just limited to gift cards. There are prepaid cards for everything, from sending money to family and friends, to managing travel funds, to shopping over the Internet. Prepaid Cards are a secure substitute for cash, cheques and gift certificates.

 Comparing prepaid cards to bank debit and credit cards

No credit checks
Credit check to open the bank account to which the card is linked.
Credit check to approve card, decide credit limit and set interest rate.
No line of credit (so no borrowing and no debt).
Account can have an overdraft facility.
Line of credit that can be increased over time
No interest charges
Interest charges on money borrowed against an overdraft and with no interest free period.
Interest charges on money borrowed against the credit limit, if there is an outstanding balance after the interest-free period.
Fees may be charged depending on the type of card. Read T and Cs carefully where they will be clearly explained.
Fees if you exceed an agreed overdraft.
Charges such as late payment fees, over-limit fees, cash advance fees, foreign exchange charges, duplicate statement fees and nonactivity fees. These are explained in the T and Cs for each card product.
Only require basic customer information.
under 18's
Require full customer information.
 
Require full customer information.
over 18
Can be used wherever Visa - MasterCard and/or Maestro are accepted, depending on the brand mark on your card.
Can be used wherever Visa - MasterCard and/or Maestro are accepted, depending on the brand mark on your card.
Can be used anywhere Visa or MasterCard is accepted.
Can be used at an ATM
Can be used at an ATM
Can be used at an ATM
Can be cancelled/blocked if lost or stolen.
Can be cancelled/blocked if lost or stolen.
Can be cancelled/blocked if lost or stolen.
 
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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