Prepaid cards have boomed in the UK in recent months after proving a huge success in the US and parts of Europe. They functionally work in a similar way to debit and credit cards, although they are topped up with cash in advance and do not provide a credit facility or have any association with your bank account.

There are many different types of prepaid card, with a wide variety of benefits and charges, so it is important that you compare prepaid cards before going ahead and applying. There are so many reasons for obtaining a prepaid card and they can benefit everyone, no matter how old you are or what your interests are.

Prepaid cards for teenagers

For the majority of prepaid cards you need to be 18 years old (the Orange Cash Card is available to over 16s), but there are some prepaid cards designed specifically for teenagers which can be accessed provided there is a joint account holder over the age of 18. These prepaid cards are perfect if you or your children are planning on carrying large amounts of cash.

More and more people are using the internet to make purchases nowadays, from music downloads to apps for smartphones, and these often require payment by a credit or debit card. Prepaid cards provide the perfect solution to this problem as they are accepted at any outlet that accepts MasterCard, Visa or Maestro (depending on your card issuer).

Prepaid cards for parents

When you start travelling on family holidays, you might wonder about what payment method is most appropriate. Traveller’s cheques and foreign currency are becoming less and less popular due to the inconvenience and security issues associated with them.

One popular and inexpensive way to take and spend money abroad is with prepaid travel cards. These cards will usually incur a small set up fee (although you can get free ones), and additional fees for withdrawing cash from ATM machines but are still much cheaper than paying commission on foreign currency, or foreign transaction fees. They are also much safer and secure than cash because if it is stolen, you can only lose the balance of the card (in the worst of scenarios because you can cancel your card and get the money left on the card put on a new card for a small replacement fee), and there is lower risk of identify fraud as the card is not attached to your personal information such as a bank account.

In addition, if you are on holiday with your family, you can take several prepaid travel cards and provide your teenagers with one, allowing them freedom to spend the way they want, to your budget, without fear of them losing cash.

Prepaid cards for the over 60s

Research from Age UK shows that 73% of older people use cheques as their preferred payment method. This could become a large problem as cheque acceptance is set to decline with the abolition of the guarantee card. More modern ways of using money such as digital banking and online payments are alien to the older generation so it is more likely that they will revert to using cash.

This is where prepaid cards come in as always carrying large amounts of cash is a serious security issue, as you could have it stolen or lose it. By using cash to top up a prepaid card, all you have to do is use the card like a credit or debit card. Prepaid cards are the perfect solution for the over 60s as cheques become less common.

There is also a more prominent reason that the over 60s should take advantage of prepaid cards, and that is to budget. Using cash can make it very hard to control your outgoings, whereas a prepaid card prevents you from over-spending your pension money, and keeps you on track.

Compare prepaid cards

There are so many options available, it is imperative that you compare prepaid cards before applying for one, however the prepaid Orange MasterCard known as the Orange Cash is a great solution for everyone. It costs £5 to buy, can be loaded with a maximum of £5,000, and can even be used around the world (although it would of course be better to use a prepaid card designed specifically for use abroad). This makes it ideal for students, adults and pensioners trying to budget and manage their money.