What are the fees?
Due to the fact that they are not usually related to an existing account, pre-paid cards tend to come with their own types of fees and charges. Cardholders may typically see charges for the following:
- Issuing of the card and initial loading
- Annual or monthly management fees
- Loading of additional value on to a card
- Transaction fees, both at home and abroad
- Cash withdrawals at a cash machine or via cashback at the point-of-sale
- Replacement of a lost card
- Closure of an account and settling of any remaining value
Prepaid card issuers should issue a full list of the fees and charges associated with their product when the card is issued. They will also tell you how they will let you know of any changes. Charges are often expressed in £, euro, or US$.
In general you should of course look for cards that have low fees – but you should also be thinking about which fees you are more likely to incur. For example, if you plan to use the card for purchases but never to withdraw cash then make sure the transaction fees are low – and don’t worry about the cash withdrawal fees. More information on fees and charges can be found in the Summary Box.