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Prepaid Mastercard
What is a Prepaid Mastercard?
A Prepaid Mastercard is a payment card that can be topped-up with value. Once topped up it can be used to make payments wherever Mastercard is accepted.
A Prepaid Mastercard differs from a credit card as everything is prepaid. It does not provide cardholders with a line of credit. It also differs from a debit card as there is no link to a bank account and there is no overdraft facility. With a Prepaid Mastercard consumers can only spend the value they have loaded onto their card.
How does it work?
Cardholders can use their Prepaid Mastercard in exactly the same way as they would use a debit or credit card. When you use a Prepaid Mastercard, the transaction value (plus the transaction fee) is immediately deducted from your account balance. As long as you have enough value available, you can continue to use your Prepaid Mastercard for purchases. When the account balance is low or at zero, cardholders will need to top up before they will be able to purchase again.
Prepaid Mastercard |
Debit Card |
Credit Card |
No bank account required |
Bank account required |
Bank account required |
No credit checks |
No credit check, identity check is performed |
Credit check to approve card, decide credit limit and set interest rate |
No line of credit (so no borrowing & 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 an overdraft and with no interest free period |
Fees are charged depending on type of card |
Fees charged if you exceed an agreed overdraft |
Charges such as late payment fees and over-limit fees |
Can be cancelled/blocked if lost/stolen |
Can be cancelled/blocked if lost/stolen |
Can be cancelled/blocked if lost/stolen |
Pay Now, Buy Later |
Buy Now, Pay Later |
Buy Now, Pay Later |
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