Although some prepaid cards have already gone “contactless”, the rollout is expected to continue apace in 2011.
This variation of the prepaid card has long been used in settings like universities and hospitals, letting users access newsagents, parking, and vending machines without having to hunt for coins. Today the payment method is rapidly going mainstream, with many banks issuing contactless debit cards and starting to include contactless prepaid cards in the mix.
As everyday prepaid cards go, the contactless feature adds an extra layer of convenience, allowing users to merely wave their card within a few inches of a receiver to complete a transaction. This type of card uses a microchip with a tiny radio antenna that transmits the card data to a reader without having to make physical contact. Because no PIN is required for such transactions, they are limited to £15 each, so that someone making off with your contactless card can’t do as much damage. Plus, you will be sporadically prompted to enter your PIN for a purchase to ensure you are the rightful owner of the card before a purchase can take place and you are protected against unauthorised use altogether as long as you notify your card issuer as soon as you know your card has gone missing.
Retailers that accept contactless cards include stores like Krispy Kreme and Pret a Manger. You should see a ripple symbol on the store’s credit card signs (usually right on the entrance door) if the store accepts this form of payment. You’ll find more retailers in London accepting contactless payments than elsewhere, though it is catching on throughout the UK.
Contactless prepaid cards are now available from Visa Contactless, American Express ExpressPay, and MasterCard PayPass, with Altair Financial being one of the UK’s leading issuers of the MasterCard branded contactless cards. Your personal spending patterns should help determine whether the best prepaid cards for you are the contactless variety. If you have to flit into the newsagent’s on the way to work every day and want to get your coffee and paper that much faster, then it may be a good choice for you.
Whether you choose a contactless prepaid card or one of the “old fashioned” ones, compare prepaid cards to find one with a fee structure that minimises the amount you’ll have to pay to obtain and use the card. For example, if you’re getting a prepaid card as a one-off thing, look for one with the lowest set-up fee. If you plan to keep it long term and reload it repeatedly, look for one with the lowest reload fees. If you plan to use an ATM regularly, look for one with the lowest ATM withdrawal fees.
