The Lemon Fool

My sister and brother-in-law have always been very suspicious of credit cards and used cash or cheque wherever possible. BiL had a credit card with a £250 limit which he used for small purchases on the internet. He passed away last year and my sister doesn't want a credit card with the same company since they were apparently very difficult to deal with.
She wants a credit card with a low limit (maybe up to £500 but preferably less) for small online purchases, or occasional use in shops. Had a quick look and can't find anything suitable. Indeed, I've seen comments that suggest requesting a low limit may raise suspicions about creditworthiness.

I wonder if a pre-paid credit card may be the answer. She could never lose more than what is loaded on the card. Potential downsides seem to be fees (annual fee or fee if not used often enough), and fees when trying to get money back off the card (unlikely to be a big issue). I've also read some reports of pre-paid cards being rejected when used for online purchases.

Any thoughts or suggestions?

--kiloran

I've also read some reports of pre-paid cards being rejected when used for online purchases.

I'm wondering if this can really be true? Simply because 'rewards' for online activities, e.g. for filling in surveys, are often in the form of cards (virtual cards in this case) pre-loaded with the amount earned and to be used for online purchases.

Why can't she just a debit card?

GrandOiseau wrote:Why can't she just a debit card?

Because she's paranoid (or maybe has been trained to be by hubby) that if a miscreant gets her card details, her bank account could be emptied. One option she is thinking about is a second current account and debit card with only £250 deposited.

--kiloran

kiloran wrote: I've also read some reports of pre-paid cards being rejected when used for online purchases.

That's possible because pre-paid cards are anonymous, and some transactions may require that the buyer is identified.

I've used such cards precisely for that reason - so the transactions cannot be traced back to me. Effectively it is like using cash.

I've never had a problem using them but then have not tried using them online, nor for any major purchases.

Having a credit card with an artificially low limit is quite useful, but there might be a problem with things like car hires where a deposit is charged to the card. Hiring a car is actually a good use for a low-limit card precisely because it makes it difficult for the hire company to try and sting you with a whole lot of charges for damage, parking tickets etc.

kiloran wrote:

GrandOiseau wrote:Why can't she just a debit card?

Because she's paranoid (or maybe has been trained to be by hubby) that if a miscreant gets her card details, her bank account could be emptied. One option she is thinking about is a second current account and debit card with only £250 deposited.

--kiloran

Does she realise that banks will pay the money back when fraudulent transactions occur? This has happened to me recently. They sent a new card and the money was repaid. Also banks have "velocity" checks so if there are several transactions in quick succession the bank will stop them until you call and verify the behaviour.

GrandOiseau wrote:Does she realise that banks will pay the money back when fraudulent transactions occur? This has happened to me recently. They sent a new card and the money was repaid. Also banks have "velocity" checks so if there are several transactions in quick succession the bank will stop them until you call and verify the behaviour.

Oh yes, we've been through all that, but she wants an easy life (not so easy after the loss of her husband) and would rather try to minimise the risk that she has to chase card companies for recompense.

--kiloran

kiloran wrote:My sister and brother-in-law have always been very suspicious of credit cards and used cash or cheque wherever possible. BiL had a credit card with a £250 limit which he used for small purchases on the internet. He passed away last year and my sister doesn't want a credit card with the same company since they were apparently very difficult to deal with.
She wants a credit card with a low limit (maybe up to £500 but preferably less) for small online purchases, or occasional use in shops. Had a quick look and can't find anything suitable. Indeed, I've seen comments that suggest requesting a low limit may raise suspicions about creditworthiness.

I wonder if a pre-paid credit card may be the answer. She could never lose more than what is loaded on the card. Potential downsides seem to be fees (annual fee or fee if not used often enough), and fees when trying to get money back off the card (unlikely to be a big issue). I've also read some reports of pre-paid cards being rejected when used for online purchases.

Any thoughts or suggestions?

--kiloran

The easy path...
Apply for a card, and accept any crap limit offered. If the limit is higher than desired accept it, but don't use it.
If said card offers a credit limit increase then decline it.
If you don't ask, you don't get.

Prepaid "credit" cards are a waste of time - no S75 protection, inactivity fees, on top of the issuer having your money with no incentive to give a ****.
Unless you are completely uncreditworthy and need plastic or they offer some other attraction (e.g. load £ and accumulate a balance in $ for US spending), IMHO for a UK based person spending money in the UK they are a waste of time.

PochiSoldi

I have to confess that I've another who's concerned about privacy, fraud and data protection. I have a Revolut prepaid card and I'm very happy with it. It's definitely not anonymous, and to be honest, I didn't know there were anonymous cards. You can have both pounds and euros charged on it. They verify ID and address via photos taken with a mobile phone. The phone app is very good. I can charge the card, check the balance and receive immediate notifications when it's used. What I find interesting is that I can turn the contactless function on/off. Why don't all cards have this feature?

So far, no problems online or in shops. The only disadvantage is the very low limit on cash withdrawals, but I have the free account so can't complain.

Steve

Hi,

I had a Halifax Visa Electron card which I used to use to avoid credit card fees on Easyjet, Ryanair etc when I used to fly a lot. I kept about £100 in it as for the flights above that I used a regular Visa to get the protection.

No interest and I ran it down to less than £20 when last month they said it was being turned into a current account next month! It has just been closed.

I don't need one now but searching shows HSBC has one. Back in the day there was only about 3 available.

If she can live with not receiving interest on say £50, this might be a way to go.

Wuz

stevensfo wrote:I have to confess that I've another who's concerned about privacy, fraud and data protection. I have a Revolut prepaid card and I'm very happy with it. It's definitely not anonymous, and to be honest, I didn't know there were anonymous cards. You can have both pounds and euros charged on it. They verify ID and address via photos taken with a mobile phone. The phone app is very good. I can charge the card, check the balance and receive immediate notifications when it's used. What I find interesting is that I can turn the contactless function on/off. Why don't all cards have this feature?

So far, no problems online or in shops. The only disadvantage is the very low limit on cash withdrawals, but I have the free account so can't complain.

Steve

I have been espousing the benefits of Revolut on here and elsewhere since I started using mine in 2016, quite early in the company's life. WRT the OP, I doubt it's the answer to someone who's suspicious of the data implications of plastic cards though.

BTW Steve, there is no limit on cash withdrawals. If you mean the £200 per month limit, that's just for commission free limit foreign currency withdrawals. After the first £200 per month, a small fee is levied to cover the same applied by the ATM provider on Revolut. You can withdraw as much cash as you have in your account, either in sterling in the UK, or local currency abroad.

BTW Steve, there is no limit on cash withdrawals. If you mean the £200 per month limit, that's just for commission free limit foreign currency withdrawals. After the first £200 per month, a small fee is levied to cover the same applied by the ATM provider on Revolut. You can withdraw as much cash as you have in your account, either in sterling in the UK, or local currency abroad.
Top

Thanks a lot for that. I obviously didn't read the small print.

Re. data implications, I just like the idea of using a card however and wherever I want without that info necessarily being available to my bank. Probably just paranoia in my old age.

Steve

And I just like using Revolut tbh. Can't really explain why, but the App with all its simple analytics showing what has been spent when, where and on what, I just find quite seductive! Better than a boring old bank, and so far, just as safe (in fact more so when compared to recent IT fiasco).

New tech is very often better than evolved old tech. A bit like the underground metro systems around the world; London is an old underground train service trying to evolve constantly and keep up with new entrants, whilst other newer metro systems have leap frogged into the lead.

BrummieDave wrote:New tech is very often better than evolved old tech.

Whilst that may be true in some cases. It is also the case that it often takes the law a long time to catch up with new tech. There is far more STATUTORY protection on credit cards than prepaid. Which means ultimately, you are far more likely to get your money back. Yes, it might be a faff. But in the long term you are protected by LAW.

Personally, I can't see why anyone who can get a proper credit card would use a prepaid instead. Ultimately, despite all the FUD they spread, there is far less protection for your money. If you're worried about your bank knowing, use a different CC provider.

Gryff

Gryff,

Just as the banks develop different products to aim at certain customers, so will their clients select products depending on their requirements. The Revolut card is not a credit card. It has its uses and fills a niche.

As you remind us, I will use a credit card for certain purchases because I am assured of some protection.

But for other transactions, I will use other means.

Re. LAW, well I remember discussions about 'ring-fencing' and the FCA going back almost 20 years to TMF and it's only now that we've learned that nobody had a clue. So I will do as the banks do, diversify and use data protection, secrecy laws and anything else I can make up to MY advantage, and not the banks.


Steve

I had a prepaid Mastercard as a 'welcome' gift from some utility - it was OK but a bit of a pain when I got to, say, £3 left on it, as you could not use it as part payment (or, nowhere I tried to would allow that, it seemed they checked the balance somehow and then rejected it as not having enough money on it).

It was not accepted in some places but I can't recall where.

I say get a Monzo account - I only use mine for holidays, but it's a bank account with a Mastercard (no s&% protection though as it's not a cc) you can use online, you can put however much you want in it.

Mel

melonfool wrote:I had a prepaid Mastercard as a 'welcome' gift from some utility - it was OK but a bit of a pain when I got to, say, £3 left on it, as you could not use it as part payment (or, nowhere I tried to would allow that, it seemed they checked the balance somehow and then rejected it as not having enough money on it).

I was told by one retailer that they cannot check the balance and then just charge that amount. They can only offer it for the entire payment and it either goes through or it doesn't.

I managed to get away with it once by getting them to put through two separate transactions for the item. That worked only because I knew exactly how much was left on the card.

But these things are really annoying and I hate the trend of businesses using them rather than just giving you a discount or the cash back.

I was furious as the 'card provider' set me up with some stupid online account which I had to use to 'activate' it and they wanted stuff like my address, DOB etc. I told them in no uncertain terms that all of that was none of their business but they insisted on having it, then refused to send me their data protection policy.

I complained to the original provider but I doubt it made any difference.

I am so fed up with everything coming with an online account. I've just complained to Aviva and as a result I now have an online 'complaints portal' I have to use to track my complaint. Honestly, you couldn't make it up!

Mel

melonfool wrote:I had a prepaid Mastercard as a 'welcome' gift from some utility - it was OK but a bit of a pain when I got to, say, £3 left on it, as you could not use it as part payment (or, nowhere I tried to would allow that, it seemed they checked the balance somehow and then rejected it as not having enough money on it).

It was not accepted in some places but I can't recall where.

I say get a Monzo account - I only use mine for holidays, but it's a bank account with a Mastercard (no s&% protection though as it's not a cc) you can use online, you can put however much you want in it.

Mel

Slight segway here, but see a lot of people recommending Monzo...
Monzo has been something i've debated over for a long time, but i've never seen much more value than just monitoring my social spend. Now they have brought out their version of a market place i'm just damn right confused about them!
Claim to be transparent etc, but i'd love to know how they'll evaluate the best deals for users now that they have referral commission to think about

charliewolfsen wrote:

melonfool wrote:I had a prepaid Mastercard as a 'welcome' gift from some utility - it was OK but a bit of a pain when I got to, say, £3 left on it, as you could not use it as part payment (or, nowhere I tried to would allow that, it seemed they checked the balance somehow and then rejected it as not having enough money on it).

It was not accepted in some places but I can't recall where.

I say get a Monzo account - I only use mine for holidays, but it's a bank account with a Mastercard (no s&% protection though as it's not a cc) you can use online, you can put however much you want in it.

Mel

Slight segway here, but see a lot of people recommending Monzo...
Monzo has been something i've debated over for a long time, but i've never seen much more value than just monitoring my social spend. Now they have brought out their version of a market place i'm just damn right confused about them!
Claim to be transparent etc, but i'd love to know how they'll evaluate the best deals for users now that they have referral commission to think about

I've never heard of 'a market place', it's not visible in my account. I'm not interested in it whatever it is.

I just use it as a bank account (which is what it is) with a lot more granularity in the breakdown of expenditure. I also have one 'pot' to save into. I tend to only use it on holiday though, so it's got no money in it currently, though I have £4.65 in a 'pot'.

Mel