Pre-Pay Credit Card For the UK

MasterCard want to bring their pre-pay cash cards to the UK from the United States and think it will be just as popular here as they already are in the US. The Pre-pay cash cards are aimed at those who are unable to set up a basic bank account or have adverse credit and would find it difficult to obtain an ordinary UK credit card.

Next month is when MasterCard plan to launch the Cashplus Card in the UK and they definitely think it is going to be a winner. In the US they have already became highly successful and they have become a $2 trillion market. It is estimated that there are 1.4 billion of these pre-pay cards in circulation in the US. They have become successful in a very short time; it has only been a matter years since the launch in America.

So what would it cost to have one of these cards? Just to obtain the card it will cost the consumer just under10 pounds, and when you have your card you have a choice of two different ways to pay. It will cost you 1 pound every time you make a transaction or you can choose to pay a monthly subscription fee of 4.95 pounds a month. If you want to withdraw money from a cash machine using your Cashplus card it will cost you 2 pounds.

The way the card works is similar to the way we all top up our mobile phone credit and you will be able to use the card anywhere that has the facility for normal debit or credit card transactions.

The Cashplus payment card will be aimed at student or children, people who have had bad credit in the past and can’t get credit now and oven 7 million migrants who do not meet the requirements for a bank account. There are over 20 million UK households that do not have a bank account and 50% of the adult population does not have a credit card.

With this card these people would be able to purchase goods online, reserve flights, book hotels or concert tickets, something they would not have been able to do.

The card is praised by supporters for offering a facility which will not encourage people to go into debt. You can only spend what you have put on the card; there is no overdraft facility or extra credit limit.

MasterCard are so enthused by their product that they are already in talks with numerous other card issuers regarding themed cards. They already have themed cards in the US with even celebrities finding themselves on the cards. They are starting to become a collector’s item in the US.

The company is counting on the diversity of the card for its popularity; they can not only be used as a cash card but can accommodate the gift card market or can even be used instead of traveler’s cheques.