Virgin Money has launched pre-paid debit and credit MasterCards with mobile phone style ‘pay as you go’ and ‘monthly’ fees.
The cards – targeting parents and those keen to budget – can be loaded with a minimum of £2 before any money is spent.
However, if customers do switch between tariffs they need to be clear on the differences between fee charging structures.
As a ‘Pay monthly’ card customer you pay a £4.75 monthly fee and no UK transaction fees, whereas transaction fees are £2.95 each time for pay as you go.
Cash withdrawal abroad is 2.95% of the cash withdrawn with pay as you go, but £1.50 each time on the monthly tariff.
Users can load cards for free at the Post Office or Pay Point with cash regardless of tariff, for example.
But all users regardless of tariff pay ‘start-up’ charges of £9.95 and balance inquiry fees of £4.95.
Cardholders can get discounts from a range of Virgin companies including Virgin Experiences and Virgin Wines, as well as discounted vouchers for high street stores including Sainsbury’s, Boots and Debenhams.
Explaining the re-branding, Grant Bather, spokesman at Virgin Money, said: ‘Virgin Money tries to take any confusing financial jargon out wherever possible and most consumers understand and are familiar with the
term ‘pay-as-you go.
‘Anything that we and the industry can do to make products less confusing to the consumer should be embraced.’
For our verdict on prepaid cards see our prepaid cards guide.
Which? news RSS Feeds
For daily consumer news, subscribe to the Which? news RSS feed here.
If you have an older web browser you may need to copy and paste this link into your newsreader: https://www.which.co.uk/feeds/reviews/news.xml .
Find out more about RSS in the Which? guide to news feeds.
Or why not get weekly updates and money saving tips delivered to your in-box by subscribing to the Money Email?