Pros and cons of Prepayment Credit Cards

You can use them pretty much on any site that accepts Mastercards, although technically I think they're classed as debit cards, which of course is understandable.

I found no problems with mine and its reassuring that i canot over spend and cannot get caned by penalties etc. It sits really well alongside a basic bank account with internet facilities so that i have all the banking facilities that im likely to need apart from borrowing which i really dont want to have anyway having learnt my lesson.

You don't get the protection that normal credit cards provide as it is a debit card, not a credit card.

If you are able to get a debit card this would be cheaper and give you all the same benefits.

Make sure it is from a reputable company, and not a scammer who is going to run away with your money.

One thing i dont understand is why a basic account doesnt have a debit card, after its not a credit card and you can only draw funds from the account if the funds are there to draw on. Perhaps its because debit cards are often mulipurpose cards and they cant be bothered to offere simplky a debit card. A debit card would help banks see a customers spending habits and enable them to offer the customer better facilities as the situation improves.

Some banks do, for example Natwest will give a basic account with a SOLO debit card pretty much regardless of credit history.

Ah, but a solo/electron card isn't a normal debit card, it's a special one which is supposed to check funds are in the account before allowing a purchase. With normal debit cards, on-line checking is optional, and this makes them more flexible. Solo/electron are not universally accepted because of this.

With normal debit cards, on-line checking is optional, and

Whose option is it? The retailer or the Bank? I agree with you the solo/electron are not univerally accepted and thats why so far ive opted for a pre paid mastercard which is accepted just about anywhere/

The reason they are not accepted everywhere is that not every retailer can be bothered to dial up each time some punter proffers one of these "nuisance" cards, or to install equipment which is permanently on-line.

AIUI it is a condition of the bank that *if* they go on-line, the transaction will be declined if insufficient funds are available, and if they *don't* go on-line, the retailer may not get his money if by the time the payment is processed there are insufficient funds.

Interesting, I didn't realise that. I always assumed all debit cards checked your balance (I never use them, too dangerous IMO).

I am amazed by some of this.

A few months ago I had an argument with RBS Credit Cards because I forgot a payment date ( I normally post a cheque) , but made it online on the actual payment due date. I got the late payment fee, queried, and got the "x working days to clear..." argument.

Technically, this seems to suggest that when I fill up the car or get the shopping from tesco, paying with HSBC Maestro, I have in effect got in on interest free credit for a few days. I always assumed it was an online balance check when using debit cards, and if it clears their paid ?

The money will leave your account pretty much immediately, but it will take about two days to reach Tesco's bank account.