Prepaid Buzz

Jubilee To Damage Economic Growth

Alex Prescott — Thu, 17 May 2012 15:18:30 +0000

The Queen’s Diamond Jubilee celebrations could hamper the economy’s recovery due to a reduction in economic output, the Bank of England has warned.

As part of the celebrations, British workers have been given an extra bank holiday, which could lead to a drop in economic activity.

The Bank of England has said that the four-day weekend might encourage some workers to take longer breaks, while some businesses might arrange extended closures.

Spencer Dale, the Bank of England’s chief economist, has said that there was an impact on the economy last year, when the Royal Wedding reduced economic growth by around 0.4%.

“The Jubilee will have a slightly bigger effect in part because it’s happening in June rather than April, so the ability for companies to make up that output within the quarter will be that much less.”

The central bank has said that there could be a similar impact on the UK’s economic recovery this year, with an expected reduction in GDP of 0.5% as a result of the Jubilee.

According to the Bank of England, this drop in economic output will make it harder for the British economy to recover in the second quarter of this year.

Despite the economic setback created by the Diamond Jubilee, the Bank of England has said that the London Olympic Games will have a positive impact on the UK’s economy.

But it was noted that the effects of the Games would be hard to determine, as while spending in some areas will go up, other industries are likely to see a negative impact.

The bank pointed to the Sydney Olympic Games in 2000 as an example, which boosted the Australian economy by around 0.75%. It estimated that similar spending levels at this year’s Games would boost the British economy by around 0.2%.

“Trying to work out how (the Olympics) will affect it is very difficult, but our best guess is that it’s likely to boost growth in the third quarter,” said Mr Dale.

“The combination of the bounce back (from the Jubilee) and the Olympics we could see growth being exaggerated by more than 0.5 percentage points,” he added.

There is likely to be a surge in spending in the run-up to the event, although tourism associated with the Games could be at the expense of other leisure activities.

The economic downturn has put a squeeze on finances, with many people’s credit debt soaring. To avoid building up credit card debt, invest in a prepaid credit card instead.

Eurozone Crisis Halting UK Economic Recovery

Lucy Harper — Wed, 16 May 2012 14:54:08 +0000

Sir Mervyn King has warned that the continuing crisis in the eurozone is hampering Britain’s efforts to recover from financial meltdown.

The governor of the Bank of England has said that Britain is recovering from the biggest financial crisis in its history, but is being held back by a eurozone that is “tearing itself apart”.

Speaking ahead of the Bank of England’s publication of its quarterly inflation report, King said there was no clear-cut solution to the eurozone problems.

“We have been through a big global financial crisis, the biggest downturn in world output since the 1930s, the biggest banking crisis in this country’s history, the biggest fiscal deficit in our peacetime history and our biggest trading partner, the euro area, is tearing itself apart without any obvious solution,” said King.

“The idea that we could reasonably hope to sail serenely through this with growth close to the long-run average and inflation at 2% strikes me as wholly unrealistic. We’re bound to be buffeted by this and affected by it,” he added.

Citing financial problems across Europe, the Bank of England has reduced its growth forecasts for the next two years and warned that inflation will not fall as quickly as first hoped.

The central bank has cut its forecast for growth from 1.2% to 0.8% for this year, and from around 3% to 2% for next year.

The government’s inflation target of 2% looks even further away now, as the Bank of England stated that it wouldn’t be reached for at least year. The bank said that inflation would stand at around 2.5% at the end of this year.

However, it was predicted that inflation would be around 1.6% in two years’ time – compared to the bank’s previous prediction of 1.8%, which it made in its February forecast.

“We don’t know when the storm clouds will move away. But there are good reasons to believe that growth will recover and inflation will fall back,” King told a news conference.

Commentators and financial experts noted that the door was left open for further rounds of quantitative easing (QE) in the future, should the economy continue to struggle.

The central bank is unlikely to want to undertake further asset purchases, after £325 billion in purchases since 2009. But it has recognised that there may be no other option.

“We suspect that the Bank of England would prefer not to do more QE, but is prepared to act if underlying economic activity fails to improve,” said Howard Archer, a European economist at IHS Global Insight.

Small Business Vital To UK Economy

Alex Prescott — Tue, 15 May 2012 15:52:35 +0000

A fraction of small businesses in the UK play the biggest role in the country’s economic growth, a report has revealed.

With the UK back in recession, politicians and financial experts are looking at ways to boost the country’s struggling economy in the face of continuing job losses and turmoil in the eurozone.

But a report published by Santander Corporate Banking has found that less than 5% of small businesses in the UK play the biggest role in boosting the country’s economy.

Dubbed Growth Champions, this group of small businesses was found to be responsible for two thirds of all private sector employment – making them vital to the UK’s economy and its recovery.

“This research shows a small group of businesses make an extraordinary contribution to the UK economy,” said John Williams, Head of Santander’s Breakthrough programme.

“These Growth Champions demonstrate a fantastic ability to excel against the backdrop of difficult trading circumstances, delivering significant growth in both employment and net worth,” he added.

The research found that these small businesses fared better than most during the recession of 2007 and 2008, creating more than 170,000 jobs.

This is all the more impressive given the performance of many other similarly sized companies during the recession, shedding more than 400,000 jobs.

“Contrary to popular thinking, these champion businesses operate across a wide range of industry sectors and are spread evenly across the UK, proving that fast growth is not confined to the technology industry or the South East,” added Mr Williams.

The report looked at the growth patterns among businesses with a turnover of between £500,000 and £10 million, across a number of industry sectors.

The highest concentration was found in the social work sector, with 14.5% of Growth Champions coming from this area, followed by complementary medicine such as homeopathy with 11.4%, and architecture and engineering activities at 7.7%.

Santander has argued that by identifying common elements to these well-performing businesses, economic growth will be able to accelerate.

“Banks have a responsibility to support businesses to accelerate growth at all stages of their lifecycle,” said Mr Willams

“Using the common characteristics exhibited by Growth Champions, we can identify the fast-growth businesses of the future and provide the support they need to help them fulfil their potential,” he added.

The double dip recession has hit consumers as well as businesses. If you are struggling with debt and other financial troubles as a result of the downturn, consider investing in a prepaid credit card. This will help you manage your money and avoid future debt.

Holidaymakers Spend More Than £500 Before Going Abroad

Philip Thomas — Mon, 14 May 2012 14:18:29 +0000

British holidaymakers spend as much money before they leave the country as they do while they are abroad, research has revealed.

The Association of British Travel Agents (ABTA) has found that, despite the economic downturn putting a strain on people’s finances, our holiday spending starts before we’ve even left the country.

It was found that British travellers spend an average of £532 each before their holiday, on items such as travel services and holiday products.

A collective £31.2 billion is spent each year by those of us going on holiday, about the same amount which is spent abroad – a collective £31.6 billion.

“Part of the excitement of going away on holiday is about the preparation,” said Victoria Bacon, Head of Communications at ABTA.

“For many holidaymakers, splashing out some of their budget on a new summer wardrobe, buying a few new books and magazines and getting their duty free at the airport are all part of the experience,” she added.

The research found that the biggest pre-holiday expense is clothes and shoes, with many of us splashing out on a holiday wardrobe before go.

Holiday clothing accounts for 1.83 billion each year, which is closely followed by duty free spending in the airport, at £1.77 billion.

Other big expenses include cameras and other digital accessories, with Brits spending an average of £759 million. This is followed by spending on magazines and books at £543 million, and toiletries and pharmaceuticals at £529 million.

“Add to this all of the jobs that are supported in travel agents, at airports and in shops and it is clear that the outbound travel sector makes a very important contribution to the UK economy,” said Ms Bacon.

“This demonstrates conclusively that going abroad on holiday is good for British business,” she added.

ABTA used the research to put forward the case for an end to Air Passenger Duty (APD), which it said is destroying the British aviation industry.

“For too long it has been assumed that by going abroad on holiday, money is being taken out of the UK economy,” said Mark Tanzer, ABTA Chief Executive.

“This report proves conclusively that the foreign holiday market makes a huge contribution to the UK economy and is an essential component of a healthy and dynamic UK economy.”

If you are planning a trip abroad this summer, the chances are you’ll be doing some pre-holiday spending. But you can keep costs down while abroad by using a prepaid travel money card such as Caxton FX, Fair FX and myTravel Cash to name a few.

By using a prepaid card, you’ll be able to avoid expensive bank fee while abroad and also benefit from a good exchange rate.

More Customers Denied Refunds By Credit Card Companies

Philip Thomas — Fri, 11 May 2012 14:32:36 +0000

Shoppers attempting to claim money back from their credit card company, after receiving faulty goods, are increasingly being denied a refund by their card provider.

The Financial Ombudsman Service, the independent watchdog for the finance industry, has said it handles as many as 100 complaints per week from customers who’ve been effectively ignored by their credit card company.

Credit card customers should be protected by Section 75 of the Consumer Credit Act, which is designed to protect card users financially.

Section 75 was once a little-known regulation. But as people’s credit card usage has increased over the years, so has knowledge of its benefits.

“It’s more important than ever that people know their rights if you use credit and something goes wrong,” said Chief Ombudsman Natalie Ceeney.

In the last five years in particular, the use of Section 75 has shot up. But where credit card companies would once payout without question, evidence shows that more and more are taking a stricter line when it comes to refunds.

Many customers have complained of receiving a standard letter from bank staff rejecting their claim outright, while the Financial Ombudsman Service has seen a spike in complaints in the last few years.

Section 75 states that if a consumer pays for something using their credit card, the credit card company is liable if something goes wrong with the purchase.

This can be anything from faulty goods, to the company selling you the goods going out of business. To claim on Section 75, the consumer must have spent a minimum of £100 and a maximum of £30,000.

“Credit cards offer a greater level of protection to consumers than payment by cash or cheques – meaning that purchases can be made with much greater confidence,” said Craig Jones, spokesperson for the UK Cards Association.

The law can be very useful to shoppers and card users, as it prevents them for paying off a debt on something that they either did not receive or was faulty.

Customers are now being urged to know when Section 75 applies, as it does not protect you should you change your mind about a purchase.

“Section 75 gives you great and unique protection,” said Doriena Koldenhof, of the UK Cards Association, the trade body for banks, says:

“But the law in this area can be complex and each claim has to be assessed on a case-by-case basis,” she added.

An alternative to credit cards is a prepaid card. These offer many of the benefits as a credit card, but with added fraud security as they are not tied to a bank account.

Improvements In Manufacturing Output Can’t Halt Recession

Lucy Harper — Thu, 10 May 2012 15:59:01 +0000

Manufacturing output in the UK was better than expected in March, the latest figures from the Office for National Statistics (ONS) have suggested.

The ONS said that manufacturing output in March rose 0.9%, compared to the previous month. This was better than initial forecasts for manufacturing output, which had estimated a rise of 0.5%.

But the surprise performance, despite outstripping estimates, did nothing to the change the GDP for the first quarter of this year – which saw the UK economy fall back into recession after a 0.2% contraction.

This is due to the poor performance of the manufacturing sector in February, when output slumped by 1.1% compared to the previous month.

In addition, a wider measure of overall industrial output, which includes energy production and mining, dipped by 0.3% in March.

This has been put down to one of the warmest Marches on record, which suppressed demand in the energy sector.

There were steep declines in mining and quarrying, especially in oil and gas extraction, and a fall in electricity output.

Analysts have said the performance of the manufacturing sector shows that the UK economy is not on its knees, but is still vulnerable to international markets.

“The US has been something of a bright spot for exporters, but even there signs have appeared to show growth weakening,” said Chris Williamson, chief economist with financial services company Markit.

“At the same time, demand at home clearly remains very subdued amid ongoing low levels of business and consumer confidence. There appear to be very few sources of new sales growth for UK producers at the moment,” he added.

In the face of rising inflation and a double dip recession, the Bank of England’s Monetary Policy Committee (MPC) announced today that it is halting its programme of quantitative easing.

After a £325 billion asset purchase programme in recent years, £50 billion of which came in the last few months, additional quantitative easing was not expected this month.

“The combination of sluggish activity and sticky inflation put the MPC in a difficult position, and this decision is likely to have been a close call,” said Ian McCafferty, chief economic adviser at employers group the CBI.

“But it appears that the persistence of inflationary pressures tilted the balance in favour of keeping the stock of asset purchases unchanged,” he added.

With the British economy still in turmoil, many people are finding it hard to make ends meet each month – racking up debt in the process.

To avoid debt, consider taking out a prepaid card. This well help you manage your money as you can only spend what is pre-loaded on to the card.

Real Time Disbursements on Prepaid Cards: Visa and OboPay

Rob Howard — Thu, 10 May 2012 07:10:23 +0000

Prepaid cards give companies an exceptional degree of control over disbursements and pay outs and also eliminate or reduce expenses associated with the issuance of paper cheques. The added advantage of prepaid cards is that they also eliminate the risks of handling cash and hence, provide insurance benefits to boot and this is one of the primary reason why a whole myriad of organisations from charities to PayDay lenders have been exploring the option of using prepaid cards for disbursements.

The further advantage is that prepaid cards are an enabling all inclusive payment solution and recipients do not need a bank account and can typically use the funds disbursed via the card at millions of locations worldwide subject to their scheme – such as MasterCard or Visa.

Corporates using prepaid cards as a disbursement mechanism typically use them as a payment solution to cover a variety of recurring business expenses including employee travel costs and supplier purchases. Due to the very nature of prepaid cards, funds on the card are limited to those loaded by the company and hence there is reduced liability and reduced exposure to fraud. There is also better monitoring and control and an avoidance of issues typically experienced with employee credit cards. It is also possible to restrict card access at certain merchants.

Some of the councils in the UK already benefiting from such disbursement solutions include the London Borough of Merton, Nottinghamshire County Council & Bury Council.

VISA and Obopay

Visa and Obopay, a leading mobile and instant payment solutions provider, recently announced a collaboration to enable near real-time payment solutions for disbursing electronic funds to a prepaid card.

This agreement will allow Obopay to offer its partners the ability to disburse funds from their corporate account directly onto a Visa prepaid card which they can provide to a payee. This I likely to have a significant impact across the industry with benefits being seen across the insurance, incentives, payroll, business expenses, charities and government disbursements sector. These are likely to be extremely beneficial in instances where recipients need to have access to funds immediately.

David Schwartz, vice president of product and corporate marketing for Obopay commented “By introducing a Visa prepaid card solution, Obopay offers near real-time disbursement capabilities that allow our customers to avoid the time delay of issuing cash or check”.

For more information about prepaid cards, their benefits and their use in business and consumer sectors, visit http://www.prepaid365.com

Visa And Samsung Launching Contactless Payment For Olympics

Philip Thomas — Wed, 09 May 2012 22:34:23 +0000

Visa is to showcase a new mobile phone payment system at the London Olympics this year, the payment firm has announced.

The company has partnered with South Korean electronics firm Samsung to launch a limited edition version of Samsung’s new smartphone – the Galaxy S3.

The Galaxy S3 was launched at an event in London last week and is due to go on sale in the coming months. As Samsung is an official partner of the Olympic Games, the Galaxy S3 has been designated as the official phone of the Games.

In addition, a limited edition version of the Galaxy S3 will be launched for the Olympics, which will be enabled with Visa’s mobile payment application payWave.

The two companies have said that the special edition phones will be able to be used at payment points throughout London.

It is estimated that there will be around 140,000 mobile payment points throughout the city by the time the Olympic Games starts – in taxis, some shops, and the Olympic Park.

“Mobile payment services enabled by NFC technology are gaining momentum around the world,” said DJ Lee, Executive Vice President at Samsung’s Mobile Communications Business.

“The Samsung Galaxy S3 is the ideal device to showcase the ease and convenience of Visa’s mobile payment application at the London 2012 Olympic Games.”

Both Samsung and Visa are keen to encourage consumers around the world to use NFC-enabled devices to make contactless payments, and have said that they see the Olympics as the ideal event to showcase the payment technology.

“The future is mobile and cash usage will only continue to decline as people use their mobile devices to manage their money, shop and pay,” said Sandra Alzetta, Senior Vice President of Mobile at Visa Europe.

“This summer our partnership with Samsung will showcase all the advantages of the future of payments: security, convenience, speed and flexibility being forefront among them.”

Recent figures show that annual global figures of NFC-enabled devices stood at 30 million units in 2011, with this figure rising to 700 million by 2016.

Around 20 countries are due to launch NFC services in the next 18 months, which could mean that contactless transactions could top $50 billion worldwide by 2014.

“Mobile payments are set to transform the payment process around the world, and will revolutionise the way people pay in the run up to, during, and beyond the London 2012 Games,” said Mike Regnier, Personal Current Accounts & Credit Cards Director at Lloyds TSB.

TransCard Continues to Grow Prepaid with First Citizens Bank Programme

Rob Howard — Wed, 09 May 2012 13:00:10 +0000

TransCard recently announced the launch of the First Citizens Bank Prepaid Programme heralding its continuing growth within the prepaid sector and adding to its growing list of prepaid programmes with financial institutions.

The agreement between TransCard and First Citizens Bank in Luverne, Alabama includes the provision and marketing of prepaid payroll cards, gift cards and generic everyday money prepaid cards through all their branches in Crenshaw, Butler and Lowndes counties. First Citizens Bank will also be participating in the new TransCard Prepaid RPM (Rapid Program Management) program, which pairs a select group of Master ISO’s with our financial institution partners to accelerate the growth of their prepaid programs.

Travis Colquett, First Citizens Bank VP and Compliance Officer, stated, “We are very excited to get our prepaid programs off to such a rapid and successful start. TransCard has a commitment to customer service, technology, and community development and to financial literacy that is in keeping with our history and mission.”

The news follows on from recent announcements from TransCard who in March this year also gained Near Field Communication (NFC) certification for MasterCard PayPass® contactless payment transactions which will basically allow financial institutions and corporate clients working with TransCard, the ability to offer contactless payment programs that are either stand-alone or connected to an existing TransCard prepaid card account.

Contactless payments are one of the fastest growing areas within the payments industry and MasterCard recently announced the launch of the MasterCard PayPass Wallet Services initiative to allow customers to make contactless payments through cards and mobile phones in stores with NFC terminals. In addition to this, those looking to shop online will also be able to save their details in the wallet and then make one-click purchases similar to the services offered by some online retailers like Amazon.com as well other online businesses such as Fiverr.

Earlier in the year, Barclaycard had launched their Smartphone payment app called Pingit and it would seem that Barclaycard are set to continue their advance on the mobile payments industry by recently announcing the launch of it’s ‘mobile’ contactless offering called PayTag. This is being positioned as the low-tech alternative to investing in an NFC-enabled handset. It is basically a contactless sticker that will enable customers at Barcalycard to use their mobile phone into a contactless payment device.

According to payment giant Visa, the number of contactless UK based point of sale terminals will rise by 50% to 150,000 this year. Asda, Waitrose, McDonalds, Boots, WH Smith and Tesco are just some of the firms to have commited to the technology.

Banks Adding Prepaid Cards to the Product Menu

Rob Howard — Wed, 09 May 2012 08:10:15 +0000

J.P Morgan Chase are looking to take the lead amongst a growing number of mainstream banks that are looking to add additional alternative financial products such as prepaid cards to their product menu with the aim of attracting new customers and retaining existing ones. The first initiative involves test marketing a re-loadable prepaid card across 200 branches.

Traditionally, prepaid cards have been targeted towards low income families and marketed as an alternative payment mechanism by dedicated prepaid card providers, alternative financial service providers, supermarkets, etc and banks have been slow to adopt prepaid cards which may be attributed to their desire to avoid cannibalising their existing credit based product revenue.

The US market has also seen prepaid cards being subject to additional scrutiny from regulators due to criticism from various consumer groups who have complained about hidden costs and fees buried in terms and conditions.

Ryan McInerney, chief executive officer of consumer banking for J.P. Morgan Chase, stated “what we did is design a product for customers who want a low-cost alternative to traditional checking accounts and banking accounts, and for people really looking for the control and flexibility of the design that we put in place”.

Some view the launch of prepaid cards by J.P. Morgan Chase as an attempt to move less profitable customers into new accounts with the aim of improving earnings in a business that has taken a pretty significant hammering due to new regulations.

Todd Maclin, Head Chase’s Consumer and Business banking unit said “when we get out of the overdraft business, we also get out of the check business, which means we get out of the paper business, which means we also get out of a lot of processing, which means we save a lot of money”.

A number of banks in the UK have tested the prepaid card market in the past but these have traditionally been prepaid travel cards with Euro, Dollar and Sterling prepaid cards being offered and these have been mostly restricted to existing customers and not really designed as a tool attract new customers. Some examples would be the Clydesdale Bank and Yorkshire Bank prepaid cards which were originally launched by PrePay Solutions (formerly PrePay Technologies) in 2006 but take up of the cards has not been wholsesale across the industry and traditionally FX houses and Foreign Exchange companies such as Caxton FX, Fair FX, MoneyCorp and myTravelCash have performed better in the FX market by offering a more friendly solution with excellent FX rates which can be availed by all consumers.

Amit Sharma, Senior Prepaid Consultant at leading UK comparison site Prepaid365.com, commented “it is interesting to watch the American experiment as the US market has traditionally taken the lead on prepaid innovations through the year and the best innovations have been adopted by providers on this side of the pond. However, it stands to reason that part of the reason why consumers are turning to prepaid cards with basic bank account facilities such as those provided by Secure Trust Bank or perhaps Thinkbanking is because of the growing frustration and mistrust towards banks and banking products and it would be interesting to see if banks can convince customers to walk back through the door with an enhanced product menu that includes prepaid cards; interesting times ahead”.

MasterCard Launches Mobile Payment System

Lucy Harper — Tue, 08 May 2012 15:08:39 +0000

MasterCard is to launch a new payment service this autumn, incorporating a number of different payment methods, the card company has announced.

Dubbed MasterCard PayPass Wallet Services, the service will allow consumers to make purchases in-store with their mobile phones, or over the internet

The new service is due to launch in the UK, USA, Canada and Australia in the third quarter of this year, with other countries added in the future.

MasterCard has said that PayPass Wallet Services will incorporate three factions. Firstly, the acceptance network for consumers to pay easily and quickly either in-store on online; secondly, the wallet itself – allowing banks to create their own wallets.

The final component is what sets the MasterCard wallet apart from similar payment systems such as V. me from Visa. In a unique feature, PayPass Wallet Services will allow third parties to create payments systems under their own brand.

“We realise that when it comes to payments, no single wallet will rule them all,” said Ed McLaughlin, chief emerging payments officer at MasterCard.

“PayPass Wallet Services simplifies the shopping experience while providing flexibility and choice to merchants, banks and consumers,” he added.

In terms of benefits to the consumer, MasterCard is focusing on the ‘one-click payment’ feature. This means that, whether it’s via the internet or in a shop, payments will be quick and easy.

MasterCard has said that consumers will be able to save up to 25 credit cards – including brands other than MasterCard – on PayPass Wallet.

They will also be able to save shipping information with each card, meaning that when they are buying online they’ll be able to enter one password and choose from the information stored.

With half a million payment points for NFC-enabled to smartphones around the world, consumers will also have choice when it comes to buying in-store. As with online payments, customers will be able to select a credit card from those saved in the system.

“Consumers are looking to pay for goods when, how and where they choose,” said Mr McLaughlin.

“Merchants want flexibility to easily accept digital payments so they can convert more browsers to buyers both online and in store,” he added.

MasterCard has also said that the PayPass Wallet Service will have all the existing security measures the company has in place. If you are concerned about fraud, investing in a prepaid credit card could be right for you.

A prepaid credit card works in much the same way as a normal credit card, but it is not tied to a specific bank account – making theft or fraud much harder for criminals.

Strength Of Pound Up Against A Number Of Currencies

Alex Prescott — Sat, 05 May 2012 01:41:23 +0000

The pound has continued to gain strength against other currencies, meaning British holidaymakers can enjoy a much better exchange rate this summer.

One pound will now buy Brits around 1.20 in euros – an increase of nearly 10% on the same time last year. This means that a family exchanging £500 will get around £50 more for their money.

But it is not just in the eurozone that Brits can take advantage of the strong sterling. The pound is also strong against the US Dollar.

Those opting for a trip to the US this year will get around $160 for £100, compared with just $142 for the same price last year.

The pound’s strength against the euro has been put down the economic downturn blighting the eurozone, as well as political uncertainty in some countries.

“It’s good news for Britons buying currency ahead of a trip to the eurozone,” said a spokesman for foreign exchange firm Travelex.

“Weeks of speculation over the future of the euro, Spain’s economic crisis, and the political uncertainty in France and the Netherlands, have seen the value of the euro fall to a level not seen for years.”

There is debate over how long the pound’s strength will last, with some warning that it could drop to reduce the burden on exports.

“We would advise those looking to exchange sterling to be wary of the recent pound strength and look to exchange as soon as possible,” said Stephen Hughes, director of currencies.co.uk.

“It may also be worth considering a forward contract to fix the exchange rate at its current level,” he added.

But other industry experts said that the strength of the pound could continue for some time, and even improve in the future.

“Buying euros must be tempting right now, but I think the UK economy is in much better shape than the eurozone so there may be more of a rally to come,” said Chris Towner, director at currency broker HIFX.

There was also good news for holidaymakers heading to European countries outside of the eurozone, with the pound rising against a number of other currencies.

Since last summer, the pound has risen by 14% against the Turkish lira, 16% against the Polish zloty, and by 12% against the Croatian kuna.

One of the best ways to take advantage of the improved exchange rates is with a prepaid travel money card. By using one of these, you’ll be able to secure the good exchange rate and keep it for as long as you have the money on the card.

Business Group Predicts Economic Growth

Lucy Harper — Thu, 03 May 2012 15:40:50 +0000

The UK’s economy will return to growth in the second half of this year, a leading business lobbying organisation has said.

The reassurance has come from the CBI, which has also predicted that the speed of economic growth in the UK will increase next year.

It is a positive prediction, which flies in the face of some pessimistic forecasts from the finance and business industry.

But despite the positive projection for the latter stages of this year, the CBI reduced its forecast for overall GDP growth for 2012 as a whole.

The business group had previous GDP growth of 0.9% for the year, but has reduced this prediction to 0.6% – following the economic figures for the first quarter of 2012 from the Office for National Statistics (ONS).

The ONS said last month that GDP in Britain was down 0.2% in the first quarter of this year, meaning the UK is now technically back in recession.

“Despite the disappointing GDP estimate for the first quarter from the ONS, we still think the UK economy will grow in 2012, with faster growth next year,” said John Cridland, Director-General of the CBI.

“Optimism among businesses has been increasing since the turn of the year, with manufacturing demand holding up. And that is beginning to translate into more jobs and investment.”

The CBI has said that quarter-on-quarter growth is expected to be flat in the second quarter of this year, as the extra bank holiday for the Queen’s Diamond Jubilee reduces economic activity.

However, the business group predicts that growth will improve in the second half of the year, as a result of global economic recovery and a moderate boost from the Olympics.

While improvements in the global economy will benefit the UK economy, the CBI has said that it still poses a threat to economic recovery.

“The global economy continues to pose a number of significant challenges. Concerns over Eurozone stability are on the rise again, oil prices remain high and confidence among businesses and households are still fragile,” added Mr Cridland.

“We have always said that the path back to sustainable economic growth will be a long and difficult one, with many bumps along the way. To re-balance our economy towards exports and investment will take time and patience.”

The current economic turmoil has put a strain on people’s finances, with many struggling with debt. A good way to avoid debt is to invest in a prepaid credit card, which bypasses the danger of debt by being pre-loaded with a set amount of funds.

Bank Warns Of Long Recovery For UK Economy

Alex Prescott — Wed, 02 May 2012 21:39:57 +0000

As the UK sank back into recession in the first quarter of this year, a leading bank has warned of a long road to economic recovery.

Lloyds Banking Group has said that the UK economy faces a number of challenges ahead, and faces a “long and difficult” recovery period.

The warning comes as Lloyds sets aside an additional £375 million to compensate customers who were mis-sold payment protection insurance, following a spike in complaints in February and March.

This large ring-fencing of funds meant that Lloyds saw a fall in bottom-line pre-tax profits in the first quarter of this year.

The banking group saw a 9% drop in profits to £288 million for the three months to 31 March, down from £316 million in the previous quarter.

Despite the fall in profits, the first quarter of 2012 was significantly better than the first of 2011 – when Lloyds reported losses of £3.5 billion.

After a turbulent period for the Lloyds, and the finance sector in general, the bank is under no illusions when it comes to the future.

“We think that the economy will be reasonably flat this year, but it is going to be a long and difficult recovery,” said Antonio Horta-Osorio, Chief Executive of Lloyds Banking Group.

“We expect it to recover to growth in 2013 and expect unemployment to peak at close to 9% by early next year.”

It is an ominous warning, but one that Lloyds itself is already heeding. The bank is currently in the process of reducing its costs.

Lloyds is trying to streamline its operation, by reducing its loan book, cutting costs, reigning in bad debts, and reducing non-core assets.

“Despite the surprising further provision for PPI redress and the weak income prospects we believe this was a positive update from Lloyds,” said Nic Clarke, an analyst at Charles Stanley.

“It has made good progress de-risking the group balance sheet by reducing non-core assets and improving its funding position.”

Despite the progress made by Lloyds, it is still struggling with its plans to sell 632 branches – highlighting the tough market for banking asset sellers.

Although mistakes have been made by Lloyds in the past, with the bank having to be bailed out by the government, it is trying to put things right with its streamlining measures.

If you are struggling with debt, it can be easy to accumulate more debt through credit cards. But investing in a prepaid card will help you avoid further debt, while still giving you some of the benefits of a credit card.

Visa To Launch New Digital Payment Service

Alex Prescott — Tue, 01 May 2012 15:31:26 +0000

Visa is to launch a new digital payment service that incorporates all types of digital payment methods in one virtual wallet, the payment company has announced.

The new payment method from Visa is called V.me, and is effectively a digital wallet that allows users to make payments on their laptop or mobile device.

Visa will initially launch V.me in Spain, France and the UK in the final three months of this year, before rolling out the new service to other countries.

While the service may draw comparisons with Google’s new payment service, Google Wallet, Visa has said that there is clear distinction between the two payment services.

While Google Wallet is a payment system focused primarily on mobile payments, Visa’s V.me can be used in a number of different scenarios.

The payment company has said that V.me is a digital wallet, rather than a mobile digital wallet, meaning it is not restricted to mobile payments.

As well as being used for click-to-buy payments on a laptop or computer, V.me can be used for NFC payments using wave-to-buy transactions and touch-to-buy with a mobile payment service.

“V.me sits at the heart of Visa’s future of payments,” said Mariano Dima, Executive Vice President of Product and Marketing Solutions at Visa Europe.

“For the first time, consumers and retailers will have a streamlined online checkout experience through an acceptance mark that offers industry-leading security and, when a Visa card is used in a V.me wallet, the same protection and rights that come with any Visa card transaction.”

Visa has said that it will use the payments processor MobilePay for advice on the new service, and to ensure V.me is able to meet the demand from customers and retailers when it launches later this year.

No banks or retailers have been announced as partners for the payment system, but Visa has said deals and partnerships will be announced in the near future.

Visa claims the service will be a safe and secure way of paying for things in a number of different digital ways.

However, there have been incidences recently of payment methods being vulnerable to digital thieves and pickpockets – something which could become more commonplace as digital payments become more popular.

One secure method of payment is to use prepaid credit cards. A prepaid card works much in the same way as a regular credit card, but as it is not tied to a bank account there is a greatly reduced danger of being the victim of fraud.

Further UK Economic Woe Predicted

Lucy Harper — Tue, 01 May 2012 08:25:41 +0000

The British economy faces several years of financial hardship with banks and insurers likely to suffer most in 2012, a report has suggested.

The UK was plunged back into recession last week, and a report by the Ernst & Young Item Club has predicted that insolvencies will go up to levels not seen since the 1990s.

The report also said that the faltering UK economy will also affect corporate lending by banks, with lending to businesses unlikely to recover to 2008 levels before 2016.

The Office for National Statistics’ revelation that GDP in Britain had shrunk by 0.2% in the first quarter of this year did not come as a shock to many in the industry.

“The double dip in recession comes as no surprise to us,” said Azad Zangana, a European Economist with asset management company Schroders.

“We have been forecasting another recession since last November when the Eurozone crisis intensified. Indeed, we are forecasting a further falls in GDP for the second quarter which will be caused by the extra special bank holiday to celebrate the Diamond Jubilee.”

The UK is not the only country to have fallen back into recession in the first three months of 2012 – it joined Belgium, the Netherlands and Spain, amongst others, after a dramatic fall in construction output.

According to the Item Club report, the bad news is set to continue for the financial sector. The report predicts that loans to businesses will fall by 6.8% this year – extending the contraction of 6.1% in 2011.

Write-offs on corporate loans are also expected to rise, increasing to 1.9% of loans in the corporate sector – compared to 1.6% in 2011.

“Although 1.9% doesn’t sound big, this will be the highest annual rate of write-offs since the mid-90s, and the more loans banks have to write off the less money they will have to lend,” said Neil Blake, a senior economic adviser to the Item Club.

“Consumer-led sectors such as retail are likely to be hit disproportionately hard as discretionary household spending is cut back amidst difficult labour-market conditions, especially in regions hit hard by government spending cuts.”

The report said that insolvencies are likely to be worst in the north east of England and Wales, as “economic output is set to contract by 0.1% and 0.3% respectively.”

The corporate sector is not the only area that is struggling financially at the moment. Retail industries and consumers themselves are also feeling the pinch as the economic downturn continues to bite.

Awards Season Special From T24 Black Prepaid

Prepaid365 — Mon, 30 Apr 2012 13:16:55 +0000

To celebrate the awards season, the team at T24 Prepaid have come up with some excellent award season special offers on the revolutionary T24 Black Prepaid Card.

As part of a time limited offer, consumers can choose from two amazing packages

T24 Black Awards Season Special Offers

T24 Black premium offer: 170 USD (Normally 240 USD)
20K standard load limit with a higher load limit with extened ID Verification
T24 Black Limited Offer: 110 USD
20K USD load limit but no additional complementary services

Get these offers now by visiting the T24 Prepaid Card website at http://www.t24blackcard.com/

Note: These offers are only available for a limited time and may be withdrawn at any time. So take advantage of these wonderful offers from T24 Black as soon as you can. Visit the review section for the T24 Black Prepaid Card review.

Prepaid365 Awards 2012 – Daily Survey Winners April 2012

Prepaid365 — Sun, 29 Apr 2012 03:35:33 +0000

Listed below are the winners of the Prepaid365 Daily Survey Competition sponsored by Kalixa Prepaid and T24 Prepaid in April 2012

Updated: 29.04.12

All the best for the Grand Prize Survey to win an iPad sponsored by T24 Prepaid – http://www.prepaid365.com/awards/2012/grandprize.html

Keep Tweeting!

More Parents Take Their Children Out Of School For A Holiday

Lucy Harper — Sat, 28 Apr 2012 02:32:13 +0000

More and more parents are taking their children on holiday during term-time, despite facing fines designed to curb the practice.

With the UK now officially back in recession, many families are feeling the financial squeeze more than ever. While people are making cutbacks in a number of areas, the family holiday is a priority that few people are willing to give up.

It has been found that three out of ten parents are planning to take the family holiday during term time – meaning that children run the risk of falling behind on schoolwork.

This is despite the fact that they face a fine for taking their children away from school, which has gone up by 60% in the last year.

Fines were introduced in 2004, and mean that parents face a charge of £60 if they are caught – a figure which rises to £120 if the fine is not paid within 28 days.

Far from acting as a deterrent, the fines appear to be doing little to prevent families from holidaying during term-time. The number of parents taking their children out of school has gone up from 7% in 2004 to 21% in 2012.

“The difference in price for taking a trip during the school holidays and during term-time is huge,” said Selwyn Fernandes, managing director of LV= travel insurance, which carried out the research.

“It is not surprising that so many parents are willing to risk a fine of £60 when they can save ten times that by holidaying outside of the peak season.”

Analysis of family holiday prices has revealed that parents can end up paying almost 50% more for a family getaway during the school holidays than in term-time.

The cost of a week’s family holiday to Florida is an average of £2,619, whereas during the school holidays it is an average of £3,824 – a difference of 46%.

Of those planning on taking their children out of school for a holiday, 57% said it was to save money while 32% argued that they could only afford a holiday during term-time.

The cost of a holiday is rising all the time, but there are a number of ways to save money while abroad. One of the best is to invest in a prepaid travel money card.

These will allow you to access money and make purchases in a safe and secure way, while also bypassing expensive bank charges for foreign card use.

UK Back in Recession After Economy Shrinks

Alex Prescott — Thu, 26 Apr 2012 14:05:20 +0000

The UK’s economy shrank by 0.2% in the first quarter of 2012, meaning the country is now technically back in recession.

The threat of a double-dip recession had been looming for some time, after Gross Domestic Product (GDP) fell by 0.3% in the fourth quarter of 2011.

A recession is defined as two successive quarters of economic contraction, so a double-dip recession was always a possibility in the first three months of this year.

The Office for National Statistics (ONS) confirmed the fears this week, as it announced that GDP was down by 0.2%.

There had been a lot of debate over how the economy performed in the first quarter of the year, with some predicting growth of as much as 0.3%.

However, for many commentators and experts, the news of an economic contraction came as no surprise.

“Today’s devastating figures are worse than we imagined, yet not a surprise given the government has been sucking investment, wages and confidence through extreme austerity measures,” said Kevin Rowan, Regional Secretary of the Northern TUC.

“Ministers now need to review all their decisions over the last two years and reflect on how they have contributed to a loss in confidence, jobs and growth. Some of the mistakes made have been breathtaking and have threatened our country’s long term future in key industries.”

The decline of the UK’s economy has been largely attributed to a sharp drop off in construction output in the first quarter of the year.

The ONS’s data revealed that construction output in the UK fell by 3%, while the production industries fell by 0.4% and the service sector, including retail, fell by 0.1%.

“The huge cuts to public spending have left a hole too big for other sectors to fill,” said Judy Lowe, deputy chairman of industry body CITB-ConstructionSkills.

Under fire from opposition politicians and industry experts, the government has said the figures are very disappointing.

“I don’t seek to excuse them, I don’t seek to try to explain them away,” David Cameron said at Prime Minister’s Questions.

“There is no complacency at all in this government in dealing with what is a very tough situation, which frankly has just got tougher.”

The UK is now officially in recession, but the majority of people will not have noticed much of an improvement since the last recession in 2009.

With household finances feeling the squeeze, it can be easy to slip into credit card debt. A good way to avoid credit card debt is to invest in a prepaid card. These are loaded with a prepaid amount, meaning you can only spend what is on the card at the time – helping avoid unnecessary debt.

Fraudsters Capitalise On Credit Card Details Of The Deceased

Philip Thomas — Wed, 25 Apr 2012 17:11:51 +0000

The identities of millions of deceased Americans are being used to apply for credit cards by criminals in the US, a study has found.

Analysis of more than 100 million credit card applications in the first three months of last year, by risk management firm ID Analytics, has revealed that credit card fraudsters are using the deceased’s details to establish accounts.

It was found that as many as 2.5 million deceased Americans have had their identities stolen by criminals, including names, dates of birth and Social Security Numbers.

The research compared the data from more than 100 million credit card applications with data from the US database of deceased people – called the Death Master File.

The comparison found that in most cases the use of the deceased’s personal information was used by criminals by mistake.

Around 1.6 million of the fraudulent applications were found to be mistakes made by identity thieves when entering Social Security Numbers.

In addition, the research found that in some cases thieves make up the names, Social Security Numbers and birthdays which coincidently match the information of the deceased.

However, in many cases the use of this information was intentional. It was found that in around 800,000 cases identity thieves were intentionally tapping the Death Master File for information to use on credit card applications.

“This study brings to light a significant problem as we see fraudsters intentionally using identities of the deceased at the rate of more than 2,000 per day,” said Dr. Stephen Coggeshall, chief technology officer at ID Analytics.

“While this is clearly a problem for businesses, surviving family members can also be the victims of this identity fraud as they are left to manage the estates of their deceased loved ones.”

So it appears that anyone can be the victim of credit card fraud, alive or dead. It is a problem that is seen not just in America, but in the UK too.

There are a number of steps you can take to reduce the risk of credit card fraud. These include keeping a close eye on your credit card use, checking your statement regularly, and alerting your card provider immediately should you lose your card.

Another way to avoid becoming the victim of fraud is to invest in a prepaid credit card. These work in the same way as a credit card, with much of the same benefits, but offer much more security.

Prepaid cards are not tied to a bank account, and have a pre-loaded amount on them, so are a lot harder for criminals to target.

Tremendous Consumer Response Drives Prepaid365 Awards 2012

Prepaid365 — Tue, 24 Apr 2012 23:47:13 +0000

The Prepaid365 Awards 2012 sponsored by T24 Prepaid promise to be the most comprehensive and representative consumer awards within the prepaid industry as the 4^th Edition of the annual Prepaid365 Awards has received an overwhelming number of consumer entries with over 200,000 entrants responding to consumers surveys which will decide the destiny of the awards in 2012.

Amit Sharma, CEO and Senior Prepaid Consultant at Prepaid365, said that: “We are absolutely delighted with the tremendous consumer response to both the main awards and the social media competitions being run in conjunction with the awards. The Prepaid365 Awards provide an excellent opportunity for Prepaid Card providers to raise the awareness of their brand and product proposition amongst consumers and also raise social media interaction with consumers through the range of social media competitions that are run in conjunction with the main awards. We look forward to an exciting evening of announcements on 31^st May, 2012”

“We would also like to thank our sponsors who represent a mix of some of the rising new stars and innovators within payments and finance including T24 Prepaid, Optimal Payments, Century Bancorp, Emotion Associates, Kalixa Prepaid and Lebara Money.”

The social media competitions have also been extremely popular with consumers with Lebara Money and Kalixa Prepaid giving away a free prepaid card and spend money to daily winners and the lead sponsor T24 Prepaid have launched their own awards season promotion with two time limited award season special offers on the T24 Black Prepaid card providing consumer with even better value.

Philip Meyer, Managing Director of the Platinum Sponsor T24 Prepaid, said: “It is extremely encouraging to see such a great consumer response to the awards. We are delighted to be associated with the Prepaid365 Awards. The awards represent recognition of the tremendous efforts put in by prepaid providers to develop successful prepaid solutions. The Prepaid365 team is doing a terrific job in raising prepaid awareness amongst consumers. We are looking forward with great anticipation to the announcement of the awards.”

The Prepaid365 Awards are the UK’s definitive Consumer Prepaid Card Awards where votes are cast by those who matter the most – Consumers. Launched in 2009 by Prepaid365, one of the UK’s leading prepaid card comparison sites, the awards are designed with the simple aim of recognising best in category service providers for different consumer and business prepaid categories as well as highlighting worthy runners ups in each of those categories.

The Prepaid365 Awards sponsored by T24 Prepaid will be announced on www.prepaid365.com on 31^st May, 2012 with simultaneous announcements being made via social media channels including Twitter, Facebook and YouTube.

For further information, please contact:

Prepaid365 – The Prepaid Card Comparison Portal

Prepaid365 is the UK’s leading prepaid card portal online to review, compare and buy prepaid credit cards representing an encyclopaedia of information on prepaid cards, providers and all things prepaid.

The annual Prepaid365 awards, launched in 2009, recognise best in class prepaid propositions and prepaid card providers voted for by consumers and Prepaid365’s subject matter experts, respectively with the awards being based on various factors including application process, card design, fee structure, features, functionality, added value and feedback from customers, customer services and the prepaid industry. Visit Prepaid365 to find out more about the awards at http://www.prepaid365.com

Prepaid365 is a trading name of Emotion Associates Limited – UK Registration Number: 06964513

Contact Details:

Email: press@prepaid365.com
Tel: +44 (0) 7834726087
Website: http://www.prepaid365.com
Twitter: http://twitter.com/prepaid365
Facebook: http://www.facebook.com/Prepaid365UK

Sasha’s Movers & Shakers – April 2012

Prepaid365 — Tue, 24 Apr 2012 18:00:17 +0000

With less than 100 days to go to The Olympics in London 2012, the year started well for Prepaid and all things contactless, with Russell West moving from Payment Card Technologies to Proxama as Business Development Manager for mobile wallets.

Russian Revolution

Paul Bartholomew-Keen takes the helm as MD RBK Money and
Glen Dower is their new Marketing Manager, both moving from Epay

Dressing up with Tuxedo

Alan Tamblyn, Business Development Manager, from Comet joins Tuxedo Money Solutions
Dean King, Business Development Manager also joins Tuxedo from 10 years at Thames Card Technology

Movers & Shakers Extra

Sandy Sancaster joins Voice Commerce Group as Head of Business Implementation from White Eagle
Callum Waddell is now Relationship Manager to CQR UK Payment Solutions from Global Prepaid Exchange.
Thom Alves moves to Ingenico hired as Account Director from The Logic Group
Tracey Quinn moved to be UK Head of Sales at Wirecard UK & Ireland from The Logic Group
James Baggott stays with MasterCard and has moved into an emerging payments role at MasterCard from Prepaid
Andrew Bailey is now Commercial Manager at Tesco Bank moving from Argos for Business

Watch out for the next edition of Sasha’s Movers and Shakers in May 2012.

Disclaimer: The information above is provided by Sasha Marley at Wentworth Executive Search and all information is correct at time of publishing. If you would like to submit information with regards to new hires, promotions or movers anywhere in the Prepaid Industry and would like that to appear in the next edition of Sasha’s Movers & Shakers, then please email sasha.marley@wentworthexec.com

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Lending To Businesses Falls at its Fastest Rate in Two Years

Lucy Harper — Tue, 24 Apr 2012 14:11:12 +0000

Lending to British businesses by UK banks fell at its fastest rate in almost two years in February; figures released by the Bank of England have shown.

In its Trends in Lending report, the Bank of England revealed that annual lending to businesses is falling at a rate of 3%. This is compared to the annual growth rate of 15% before the recession.

The news comes as the Office for National Statistics (ONS) prepares to release its verdict on the UK’s economic performance in the first three months of 2012.

Many industry analysts are expecting the country to enter a double-dip recession, with estimates of economic contraction ranging between 0.1% and 0.3%.

The Bank of England’s report found that lending by the major UK banks and building societies fell by £4 billion in February this year.

This is the biggest drop in lending since March 2010, when lending by banks and building societies fell by £4.1 billion.

Over the course of the first quarter of this year, lending to businesses fell by around £9 billion – making the total outstanding stock of loans £443 billion.

“The stock of lending to small and medium-sized enterprises continued to contract,” the Bank of England report said.

“The annual rate of growth in the stock of lending to UK businesses was negative in the three months to February.”

The Federation of Small Businesses (FSB) has stated its disappointment at the findings of the report, but has said that it is not surprised by the results.

“This report underlines a problem which the FSB has been articulating for some time – that there’s not enough finance getting to the small business community and small business finance is increasingly expensive,” said Andy Willox, Scottish policy convenor of the FSB.

“Despite significant political pressure and a range of Government interventions, the report describes deteriorating levels of lending to the small business community over the last three years.”

The ONS is due to announce the official data for the UK economy, revealing whether or not the UK has fallen into a double-dip recession.

While many analysts believe a double-dip recession could be avoided, a leading think tank stated recently that it expects Britain’s economy to contract in the first quarter of this year.

The Office for Economic Co-operation and Development (OECD) has predicted that the UK economy will shrink by 0.4% in the first three months of 2012.

A double-dip recession could spell even more financial trouble for squeezed Brits up and down the country who are already feeling the pinch.

EasyJet Launches New Routes For Business Travel Market

Philip Thomas — Mon, 23 Apr 2012 13:48:22 +0000

Budget airline easyJet is continuing its assault on the business traveller market with the launch of nine new routes for winter this year.

All the new routes announced by the airline are key European city pairs that have been found to be popular with business travellers.

“The launch of these nine new routes cements our promise to offer business and leisure passengers the best schedule and availability of flights from our network of 11 UK bases,” said Paul Simmons, easyJet’s UK Director.

“We’re committed to expanding our route offer to ensure we deliver the best value fares to the places our customers tell us they most want to visit.”

Tickets for the new routes go on sale this week, and mean that more than 230,000 seats have been added to easyJet’s winter schedule – which now extends to a total of 280 routes.

The new services fly from airports across the airline’s UK network, including Manchester, Bristol, Newcastle and London Gatwick.

A new domestic route has also been announced, connecting Belfast and Birmingham. Starting in October, the service will fly twice a day on weekdays all year round.

“We are delighted to be starting this new route which demonstrates easyJet’s commitment to the Northern Ireland travelling public, and reflects the growing demand for business travel to and from Belfast,” said Ali Gayward, commercial manager with easyJet.

“Our schedule, with flights operating at peak morning and evening times, also reflects our continued focus on meeting the needs of the business traveller, as well as offering leisure travellers affordable access to the Midlands.”

The new international routes include flights to Tel Aviv, Tallinn, Turin, Amsterdam, Geneva, Venice, the Isle of Man and Copenhagen.

The majority of routes will commence in October, and cost between £20 and £30 for a one-way ticket including airport taxes.

“Our schedule has been increased across the network to ensure our passengers can visit the most popular city and sun destinations,” Mr Simmons added.

“I’m confident our addition of nine new routes further opens up the best European and mid-haul destinations making travel easy and affordable for all.”

easyJet currently operates on more than 600 routes across Europe, making it one of the biggest airlines on the continent. It operates out of 131 airports in 29 countries, and has recently launched its newest base at London Southend Airport.

If you are planning a holiday abroad this year, with easyJet or any other airline, investing in a prepaid travel money card is a good idea. These will offer you added security while avoiding expensive bank fees for foreign card use.

Credit Card Criminals Target Hospitality Industry

Lucy Harper — Fri, 20 Apr 2012 14:23:33 +0000

The hospitality industry is being warned of a heightened danger of attack from cyber criminals, as a new type of malware targeted at hotels goes on sale on the black market.

A shift in the focus of cybercriminals has been detected recently, as they target systems that store details of a higher number of credit cards rather than personal online bank accounts.

The latest attack is aimed at the point-of-sale (PoS) systems in hotels, as hotels generally have a limited knowledge of IT and malware, but handle a large number of credit cards on a daily basis.

The latest malware is a remote access Trojan horse (RAT), which is designed to steal customer credit card and billing information from hotel front desk computers.

The malware was discovered by researchers at security firm Trusteer, and was on the black market for $280, or £175.

The RAT has the ability to take screenshots, upload and download files to and from the infected computer, and record keystrokes – making them suitable for a number of operations.

“The strength of RATs is their generic nature – they can be used to attack many different applications in use by many industries,” said Amit Klein, Trusteer’s chief technology officer.

“We’ve seen RATs used against internal applications, banking applications, defence industries,” he added.

The RAT discovered by Trusteer came with an algorithm to prevent it being detected by any antivirus software, meaning it can be delivered to a buyer via email or instant messaging without being detected.

In addition, the malware package also came with instructions on how to trick hotel managers into installing it on a front desk computer.

Trusteer has said that the malware’s focus on hotel PoS systems is typical of cybercriminals these days, who are looking for more lucrative targets than personal bank accounts or consumer machines.

“I think the main reason for this shift, or diversification, is the fact that PoS machines, and some business machines serve as ‘mini repositories’ where information about many victims can be collected at once,” said Mr Klein.

“This is in contrast with consumer machines which typically expose one or two accounts,” he added.

The news is worrying for credit card customers, as there is no way of detecting the Rat on a hotel PoS system. But one way to avoid being the victim of credit card crime is to invest in a prepaid credit card.

These work in much the same way as a credit card but are not tied to a bank account, meaning you only load a specific amount onto the card.

A Third Of New Mums Get Into Debt On Maternity Leave

Lucy Harper — Thu, 19 Apr 2012 16:04:16 +0000

Nearly a third of new mothers end up in debt during their maternity leave and are forced to cut their leave short as a result of their ailing finances.

A survey of more 1,000 new mums found that 28% ended up in the red during their maternity leave, racking up an average debt of almost £2,500.

Many have to rely on help from others to deal with their financial situation, with one in ten borrowing money from their family.

A further 14% of new mums rely on credit cards, loans and overdrafts to make ends meet while they are looking after their newborn baby.

“Planning for a baby is tough at the best of times, but in the face of the soaring cost of living there is even more pressure on family finances,” said Ann Robinson, Director of Consumer Policy at uSwitch.com, which carried out the research.

“For some families this can mean some very difficult decisions. It’s heartbreaking that so many mums are being forced into debt or having to cut short their maternity leave just to make ends meet.”

More than one in ten new mums cut their maternity leave short as a result of the financial pressures the break from work can cause, while 9% have had to rethink their plans to stay at home.

“Sadly, very few mums have the luxury of being able to stay at home for the whole of their maternity leave and even fewer have the choice to be a stay at home mum,” added Ms Robinson.

“It’s clear that more needs to be done by the Government to help families cope with the financial burden of parenthood, but in the meantime families can help their situation by reviewing household budgets and looking at where they can cut costs to save a bit of extra cash.”

The research also found that only a quarter of mums-to-be feel financially prepared for a child, while 23% delay having a child because they can’t afford it.

Maternity leave only exacerbates the problem. Those going on maternity see their household income drop by almost half, yet four out of ten do not save money to cover the time off.

On top of this, new mums are splashing out during their maternity leave – spending more than £1,400 during their time off.

While many are relying on credit cards to make ends meet, this is can easily lead to yet more debt. To avoid getting into credit card debt, take out a prepaid card that you load a certain amount on to.

Smartphone Payment To Replace Credit Cards By 2020

Lucy Harper — Wed, 18 Apr 2012 14:18:17 +0000

Smartphones will replace credit cards and even cash as the chief method of payment by 2020, experts have predicted.

A survey of more than 1,000 technology experts has found that the majority believe contactless payment will overtake cash and credit cards in this decade.

The survey found that more than 60% of technology experts felt that paying with smartphones will be widespread within just eight years.

Smartphones use Near Field Communication to make contactless payments, in which a sensor in the device and another in the payment terminal trigger a transaction.

The technology is becoming increasingly popular, with technology companies such as Google introducing the payment method.

Technology giant Apple is also rumoured to be developing its own contactless payment app, which is expected to use Near Field Communication. There are also a number of start-up companies looking to capitalise on the growing popularity of the payment method.

In the US, more than 10% of mobile phone users have made a payment using their smartphone, a trend that is set to continue this year and into the future.

“NFC is going to play a much more prominent role, a major role in m-commerce,” said Chris Silva, an analyst with Altimeter Group.

The timeframe for the growth of contactless payment has been the subject of much debate, as credit card companies are reluctant to allow different payment methods into the market.

“There was a relatively strong notion that it’s something that may not happen really quickly due to the reluctance of incumbents to cede their place in the market,” added Mr Silva.

There has also been concern about the security risks associated with contactless payment, as there have been a number of cases of users having their card details stolen.

It was revealed recently that users of Google Wallet could have their details hacked, thanks to a flaw in the payment technology.

It was found that anyone with a Google Wallet-enabled device can change the PIN by clearing the data on the app. When a new PIN is asked for, the hacker can access the funds in the account the smartphone is tied to.

Barclay’s contactless credit card has also come under fire recently, as it was discovered that details on the card could be stolen by simply waving a smartphone in front of it.

Prepaid credit cards are a good way to bypass most security risks, as they are not tied to a bank account and only have a specific amount of funds on them.

Eurostar Announces Boost In Passenger Numbers

Lucy Harper — Tue, 17 Apr 2012 15:38:20 +0000

Eurostar has seen an increase in passenger numbers and sales revenue in the first three months of this year, the high speed rail service has announced.

The growth has been put down to a boost in leisure travel with the service, as business travel has remained largely the same compared to last year.

Sales revenues were up by 7% in the first quarter of 2012, rising from £197 million in the first quarter of 2011 to £210 million this year.

There was also a boost to passenger numbers on Eurostar, up from 2.15 million at the start of 2011 to 2.24 million at the start of 2012.

“The year got off to a strong start with sales revenues and passenger numbers on the up,” said Nicolas Petrovic, Chief Executive of Eurostar.

“Our core destinations continue to be a big draw for passengers but we have also seen particularly good take-up of our Amsterdam fares as passengers are increasingly keen to try out new leisure destinations by high speed rail.”

Eurostar is hoping to build on the strong start to 2012 throughout the rest of the year, as events in London are expected to attract visitors from the continent.

“We are gearing up for an exciting summer as the nation counts down to the London 2012 celebrations,” said Mr Petrovic.

“Bookings for the June bank holiday weekend are looking strong with thousands of visitors coming to London to enjoy the unique pageantry of the Queen’s Jubilee.”

The Queen’s Diamond Jubilee celebrations and the London Olympics will make the capital an attractive destination for tourists, and Eurostar is hoping to capitalise on the events.

“There is no doubt that London is set to have one of its most memorable years on record and we are looking forward to welcoming visitors from around the world to share in the experience,” added Mr Petrovic.

Research by the Office for National Statistics (ONS) has revealed that the number of Brits travelling abroad grew for the first time in four years last year.

It was found that 3.3 million people travelled abroad in February last year, compared to 3.2 million in February 2010.

Overall, the number of Brits travelling abroad grew by 0.8% in 2011, with a large number choosing short-haul destinations over those further afield.

If you are planning a trip abroad this year, whether it is to Europe or to a more long-haul destination, it is a good idea to invest in a prepaid travel money card. These can be cheaper than a traditional credit or debit card and offer extra security features.

Brits Benefit From Cheaper European Holidays

Lucy Harper — Tue, 17 Apr 2012 15:33:38 +0000

British travellers are set to benefit from cheaper European holidays this year as the value of the pound (GBP) strengthens over European currencies.

Both Euro and non-Euro currencies have been weakened over the past year, putting the British currency at a distinct advantage. This means that trips abroad are now more affordable, with the Latvian capital Riga offering the best value for money.

According to a survey by Post Office Travel Money, an average holiday to Riga costs just £121.47, whilst Budapest falls into second position with an average price tag of £129.72.

Of the 23 city destinations which were compared across Europe and the USA, Stockholm was found to be the most expensive, costing just shy of £300.

Other costs, such as those associated with dining and accommodation, were taken into account during the survey, with Budapest named as the cheapest city for eating out.

Commenting on these findings, Andrew Brown, the Head of Post Office Travel Money, explained that Brits were getting better value for money as “local prices [in Budapest] are level with those a year ago” but a stronger currency exchange meant Brits were getting more for their money.

These findings could make Europe a more popular destination for Brits this summer, especially as numerous residents look to foreign shores to escape high-profile celebrations such as the 2012 Olympic Games and the Queen’s Diamond Jubilee.

According to a recent survey, one in ten Brits is planning to take advantage of the long Bank Holiday weekend generated by the Diamond Jubilee by taking their own trip away. Whilst some of these individuals will look for a holidays on home soil, a large number are expected to take advantage of the last minute deals available on holidays abroad.

Youngsters were found to be those most eager to escape the hustle and bustle of the capital, with 12% of those aged between 18 and 24 years planning a holiday during the celebrations.

The strong exchange rates currently available on European currencies could, therefore, act as a catalyst for this movement, encouraging Brits to partake of holidays abroad through financial incentives.

This would allow holidaymakers to make the most of their time away from work without negatively impairing their finances – something which is key given the current economic crisis which is still afflicting British households.

Those looking to save even more money on their trip could use a prepaid travel card for their spending money. These are often cheaper to use abroad than credit or debit cards and also benefit from strong exchange rates.

British Travel Numbers Return To Form After Four Year Decline

Lucy Harper — Fri, 13 Apr 2012 22:37:09 +0000

Latest figures from the Office for National Statistics (ONS) showed the number of British residents travelling abroad grew for the first time in 2011, following a four year slump.

Previous figures had shown a decline in the number of Brits taking holidays abroad since the onslaught of the 2008/2009 recession, making this increase particularly positive news for industries and individuals alike.

Whilst the growth is only marginal (0.8%), this is still a positive step for travellers. Overall, 3.3 million individuals journeyed abroad in February 2011 – a distinct increase from the 3.2 million who undertook this type of travel in 2010. The number of people visiting the UK also increased, with inbound visits up by 2.9%.

Of the holidays taken, a large number were in more localised regions and the ONS Overseas Travel and Tourism Report stated there was a distinct “short-haul focus” within these figures.

Considering the current economic state of the UK, this news concerning holidays may come as a surprise to some consumers.

However, the ONS figures revealed that last-minute bookings and package holidays were the prime form of holiday taken by individuals of late – with Brits desperately searching for the best deals before booking their holidays.

Senior Research and Public Affairs Manager for ABTA, Stephen D’Alfonso, explained that the “exorbitant level of air tax, which is higher for longer-haul destinations, may be impacting Britons’ choice of holiday destinations.”

Despite this, the amount UK residents spent on trips abroad rose to £1.86 billion this February. This is a noticeable increase from the £1.81 billion spent in February 2011, but demonstrates how Brits are becoming savvier with their travel money as more people look to spend less.

For those looking to save money whilst holidaying abroad, a prepaid travel card could be a great option. These may be cheaper than traditional credit or debit cards and means you do not waste money continually exchanging foreign currency.

Police Fear Rise In ATM Fraud During Olympics

Lucy Harper — Thu, 12 Apr 2012 16:33:38 +0000

People using cash machines this summer are being urged to be extra vigilant, as police fear a sharp rise in ATM crime during the Olympics.

ATM crime is on the rise in Britain, with criminals using advanced technology to obtain cardholders’ bank details.

Millions of pounds are stolen from customers every single month, and police in London expect to see a sharp rise during the Olympic Games this summer.

“The criminals constantly try and evolve their technology to beat the technology the banks put in place. It’s a constant battle to try and work out where the criminal is going next,” said DCI Paul Barnard, head of The Dedicated Cheque and Plastic Crime Unit.

Improved security by banks has meant there has been a significant reduction in cash machine fraud during the past year. Cash machine fraud fell by 12% to £29.3 million last year from £33.2 million in 2010.

But it is still an ongoing problem, and officers are warning that there could be as many as 1,000 cash-point gangs still operating in the UK.

The majority of cash machine fraud is committed by one nationality, which has something of a monopoly on the trade.

“The fact is 92% of all ATM fraud we see in this country is committed by Romanian nationals. Very, very tight communities, very tight gangs,” added DCI Barnard.

The gangs use a number of different techniques to obtain the bank details of cardholders, from hidden cameras recording a PIN to even constructing entire ATM fascias.

“Although cash card fraud has decreased in the past year, it is still an issue that cardholders need to be aware of,” said a spokesman for Financial Fraud Action UK.

“If they think a card machine has been tampered with, they should immediately end the transaction and use an alternative ATM.”

The most common type of cash machine fraud is skimming, whereby a device is fitted to the machine which reads a customer’s bank details. The details are put on another card, and the thieves use the recording of the PIN to withdraw money.

“If you spot any transactions you didn’t make, contact your card issuer immediately,” added the Financial Fraud Action UK spokesman.

“If you are the innocent victim of card fraud you have legal protection and should not suffer any financial loss.”

A good way to protect yourself from fraud is by using a prepaid card. These are not tied to a bank account and have a specified amount on them, so you won’t see your account drained should it be stolen.

Barclaycard Increases Cash Machine Charges

Lucy Harper — Thu, 12 Apr 2012 00:07:30 +0000

Barclaycard is to make changes to the amount it charges for customers to withdraw money from cash machines, the finance company has announced.

The firm also plans to impose new charges on gamblers who use a Barclaycard credit card to place bets from the end of next month.

There is currently no charge for placing a bet using a Barclaycard credit card, but from next month it will be subject to the same charge as using a cash machine.

The changes are due to come into effect on 28^th May, and will see card holders paying more for withdrawing cash from ATMs.

From this date, anyone withdrawing cash with a Barclaycard credit card will be charged a single fee of 2.99%, with a minimum charge of £2.99.

This is a boost of 0.4% from the 2.5% charge currently levied against cardholders withdrawing cash, with a minimum fee of £2.50.

Despite the hike in cash machine charges, those who use a Barclaycard credit card while abroad are set to be better off under the new regulations.

The 2.99% charge will still apply to foreign cash machines, but this will be the only charge levied against people using their credit card abroad.

Under the new system, there will be no interest added to the fee as long as cardholders pay off the money by the due date specified in their card statement. As well as this, there will be no charge for a currency exchange.

However, Barclays debit card users will incur a 2.99% charge for currency exchange plus a 2% fee for using a foreign cash machine – with a minimum charge of £1.50 and a maximum charge of £4.50.

While there is no currency exchange charge for Barclaycard credit card users at foreign ATMs, the exchange charge for making purchases abroad is to go up from 2.75% to 2.99%.

Barclaycard is not the only company increasing its cash withdrawal charges. A number of credit cards, including Play and Capital One, are charging customers a fee as well as interest even if they pay their card debt off in full each month.

“Withdrawing cash on a credit card, rather than a debit card, is never advisable,” said Louise Holmes, from comparison site Moneyfacts.

“Interest will be charged almost immediately and rates for cash withdrawals are typically higher than those for purchases.”

You can avoid high fees and interest by switching to a prepaid card. These offer many of the same rewards as credit cards but can be a much cheaper option, especially if you have a poor credit rating.

Air Passenger Duty Increases Costs Of Holidays

Philip Thomas — Tue, 10 Apr 2012 15:24:23 +0000

A rise in Air Passenger Duty (APD) on April 1 has meant an increase in the cost of holidays to a number of destinations, putting a further strain on family finances.

Although the rise may deter tourists from making their annual trip abroad, the news that a holiday to Malta has increased by just 0.08% (or just £1) is sure to put a smile back on holidaymakers’ faces.

In contrast, the study conducted by M&S Money of ten commonwealth destinations found that family holiday budgets will be particularly stretched in the following two countries: Singapore (£2,662) and New Zealand (£2,206).

Those looking for a more wallet friendly seven-day break, inclusive of flights, should head to Cyprus (£1,199). This is closely followed by Malta (£1,230) and Kenya (£1,435).

Although holidays in East Africa have increased by a figure of 13.65% over the last year, Kenya still proved the best value destination at £988.

The costs of a holiday in New Zealand and Barbados also shot up by over 8%, while South Africa, Canada and Cyprus only increased by a more marginal 1.5%.

Jane Lawson, head of travel money at M&S Money, said: “In the Queen’s Diamond Jubilee year many people will be tempted to follow in the footsteps of the Royal Family and see what the Commonwealth has to offer.

“Luckily, favourable exchange rates and lower inflation mean many countries in the Commonwealth offer great value for money.”

The rise in APD was met with dismay by travel body ABTA who fear that it may have a negative impact on world tourism:

“We expressed great concern that the APD bands based on the distance from London to the capital city are illogical from an environmental perspective and would put off travellers to destinations such as the Caribbean and Kenya, whose economies are extremely dependent upon tourism. APD also has an impact upon incoming visitors to the UK which might make them go elsewhere and not visit the UK at all.”

If you are heading on a family holiday abroad this summer you may want to use prepaid travel cards to save on the costs of continually exchanging your foreign currency.

Holidaymakers Charged Millions For Excess Baggage In 2011

Philip Thomas — Fri, 06 Apr 2012 12:42:34 +0000

British holidaymakers were charged millions for going over airlines’ baggage limits last year, research has revealed.

The research, by travel website Kelkoo, found that a collective £186 million was racked up in fines by Brits who exceeded their airline’s baggage weight limit.

It was found that baggage limits were exceeded by an average of 3.5 kilos, incurring a charge of £48 – 15% of the average price of an air ticket.

Interestingly, it was on full service airlines that customers were most likely to incur a charge, with 41% of charges coming from full service carriers.

Just over a third of travellers who incurred a charge did so on low cost airlines, while chartered carriers accounted for 20% of baggage charges.

However, the high charges levied by budget airlines meant that these carriers reaped 47% of the total charges collected.

The research revealed that excess baggage charges on budget airlines are almost double that of full service and chartered carriers. The average cost per kilo on low cost airlines is £13.20, compared to £7.15 on chartered flights and £7.46 on full service flights.

“While the fare for flying with a low cost carrier may be lower, additional costs for checked luggage, booking fees and higher charges for excess baggage can result in prices rocketing,” said Chris Simpson, CMO of Kelkoo.

“With summer holidays round the corner, travellers should look to compare prices not just between low cost and traditional airlines, but also between specific carriers as there are substantial savings to be made by shopping around.”

The reason for the high amount of charges was put down to the varying weight limits for different airlines. The limits range from 15 kilos to 23 kilos, leading to a great deal of confusion amongst travellers.

“We’d encourage all passengers to check their luggage allowance, and weigh their bags before they fly, to ensure they are not hit with an unexpected extra cost once they get to the airport,” said Mr Simpson.

“With airlines charging as much as £20 per extra kilo, this can be an expensive oversight,” he added.

Brits are expected to continue incurring high excess baggage charges this year, with fees expected to top £37 million in the six-week summer holiday period alone.

While the fees for excess baggage are potentially very expensive, holidaymakers can save money abroad by using a prepaid travel money card. These will save money on expensive bank charges for foreign card use, while also offering a good exchange rate.

Tweet to WIN a FREE Kalixa Prepaid Card and Spend Money Daily in April

Prepaid365 — Wed, 04 Apr 2012 11:16:31 +0000

THIS COMPETITION IS NOW CLOSED

Tweet to WIN a FREE Kalixa Prepaid MasterCard and Spend Money – Daily Competition

All you need to do to be entered into the daily prize draw is to follow a few simple steps

Follow @Prepaid365 on Twitter at http://twitter.com/Prepaid365
Retweet our Tweet of the Day – “Follow @Prepaid365 & @kalixa_uk & RT to #WIN a #Free Kalixa Card w/ £10 – http://bit.ly/HLi2OS – Win an #iPad2 – http://bit.ly/Aql55w″.
That’s it really and your entry for the day is done.
Only one entry per day is allowed via twitter but if you want to make another entry – why not like us on Facebook at http://www.facebook.com/Prepaid365UK and post our tweet on your status page. If you already like us on Facebook, that’s fine – simply post to your status page.
You have just doubled your chances with the extra entry via Facebook – WOW!
Not yet done? Neither are we – why not complete our simple daily survey question to get a 3rd entry into the daily prize draw – http://www.prepaid365.com/awards/2012/dailysurvey.html – all done in under a minute!
So that’s 3 entries into the daily prize draw for a Kalixa Prepaid Card with £10 spend money.
Get your entries in today but make sure you read the competition rules below – Go, Go, Go!
Don’t forget to check out our “Tweet to WIN an iPad 2 competition” here

Love this? Why not check out our Tweet to Win an iPad 2 Competition here

Competition Rules

This competition is valid for UK residents only.
You need to be 18 or above to enter the competition.
The sponsor of this promotion is Emotion Associates, T24Prepaid and Kalixa Prepaid – all being collectively referred to as (“Sponsor”). No other third parties are a sponsor of this competition and are also not responsible for conducting this promotion in any way or form.
The promotion will run daily from 12.00am BST to 11.59pm BST from April 4th, 2012 to April 3o, 2012 and 1 winner will be announced each day.
The prize package is a Free Kalixa Prepaid MasterCard with £10 spend money.
The winner will be announced each day on Twitter and Facebook at 4:00pm BST the next day. The winner is not responsible for any taxes associated with receipt of the Prizes.
To enter the promotion, the entrant must complete all requirements as defined in the competition steps by following the Sponsor’s Twitter account located at the URL http://twitter.com/Prepaid365 and http://twitter.com/kalixa_uk from their own Twitter account. The entrant must then issue the status update from their Twitter account as shown above. The entrant’s Twitter updates must not be protected during the promotion period. Entrants may sign-up for their own Twitter account at https://twitter.com/signup. All steps must be completed for a valid entry.
Additional entries can be made by liking the Sponsor’s Facebook Page at http://www.facebook.com/Prepaid365UK and posting the competition tweet to your Facebook status page (1 additional entry). If you already like us on Facebook, simply post to your Facebook status.
Additional entries can be made by completing the Daily Survey Question at Grand Prize draw at http://www.prepaid365.com/awards/2012/dailysurvey.html (one additional entry)
One winner will be selected randomly from all the valid entries each day. Sponsor will notify the winner via a Twitter direct message from the Sponsor’s Twitter account the next day and results will also be posted on twitter and Facebook. If the winner does not respond within three (3) working days, another direct message will be sent by the sponsor. If no response is received within an additional three (3) working days from them, he or she will forfeit the Prize and another winner will be randomly chosen.
The winner will need to complete the application form for a Kalixa Prepaid MasterCard and the card fee and the spend money will be loaded back on to the winners card if their application has been successful. If their application is not successful and they are unable or ineligible to get a card, then the prize is forfeited. No cash alternative is available.
No purchase is necessary to enter or win. Void where prohibited or restricted by law. Employees of Sponsor and family members of such employees are not eligible to enter.
By participating in this promotion, entrants agree to release and hold harmless Sponsor from any claim or cause of action arising out of participation in the promotion.
Sponsor reserves the right to substitute for a suitable alternative of equal or greater value in the event of unavailability due to circumstances beyond their control. No cash alternative is available.

Aviation Industry Criticises APD Hike

Lucy Harper — Wed, 04 Apr 2012 09:01:14 +0000

The UK aviation industry has again called on the government to scrap Air Passenger Duty, as the tax went up by 8% this week.

Air Passenger Duty (APD) has long been a divisive issue, with airlines and passengers alike calling for it to be scrapped.

The 8% increase this week comes just in time for the Easter Bank Holiday, when thousands of British holidaymakers will be taking flights abroad.

The aviation industry have called it a ‘tax on recovery’, saying that the continued growth of air travel is vital to the country’s economic success.

The country’s leading airlines, including easyJet, Virgin Atlantic and Ryanair, have long been vocal in their criticism of the tax.

“At a time when the Government talks about creating jobs and growth, its blinkered insistence on further increases in Air Passenger Duty achieves precisely the opposite,” the airlines said in a statement.

“Yet again, the Treasury is pressing ahead with further rises without any analysis of their effect on the wider economy. In the absence of such a study, we must assume that the Treasury knows it cannot justify this job-destroying tax in overall economic terms. APD must be scrapped.”

But is not just the British aviation industry that has raised concerns over the tax. Tourist boards in a number of countries have said that the tax will have a detrimental effect.

“The APD impedes tourism, travel, trade and economic growth and unfairly penalises British residents wishing to visit long-haul destinations like Australia and New Zealand,” said John Lee, from the Australian Tourism and Transport Forum.

APD affects all flights in and out of the UK, both long-haul and short-haul. The 8% hike means that a family of four travelling to Florida will have to pay an extra £260.

Flying to farther-flung destinations would cost even more, with a family of four having to pay an extra £440 to fly to the Caribbean and an extra £500 to fly to Australia.

Defending the tax, Chloe Smith, Economic Secretary to the Treasury, told the BBC: “We have made aviation tax fairer by bringing private business jets in for the first time.

“We have been able to be clear about what will then happen to it this year – I think that does represent a fair deal for passengers and I think it does also represent a fair deal for businesses, who are today enjoying a historically low rate of corporation tax.”

Despite the APD hike, holidaymakers can still save money if they are going abroad. Investing in a prepaid travel money card will save money on high bank fees for foreign card use, while also offering a good exchange rate.

Millions Of Brits Are Planning Olympic Getaway

Lucy Harper — Mon, 02 Apr 2012 15:55:03 +0000

Millions of Brits are planning to snub the Olympic and Paralympic Games this summer by deliberately booking a holiday abroad to coincide with the sporting event.

With thousands of people from across the globe heading to the UK for the world’s biggest sporting occasion, it seems that many Brits will be going in the opposite direction.

Research by foreign exchange firm Travelex has revealed that around a third of Brits going abroad this summer based their departure dates around the Games.

It was found that 35% have already booked a summer holiday, with three quarters of these saying the Olympics had affected their departure date in some way.

Based on its research, Travelex estimates that around ten million Brits are planning to leave the country at some point during the Games.

The period before the start of the Games is likely to be the busiest for British holidaymakers, with the foreign exchange company estimating around four million Brits will leave the UK in the five days leading up to the Olympics.

“While the Olympics should be a fantastic spectacle it seems a large number of Brits would prefer to watch it from afar,” Elvin Eldic, from Travelex, told the Daily Mail.

More than a quarter of those surveyed in the research said that they intend to book a holiday that side-steps the Olympics.

Not only this, but it was found that 10% of people have even changed the dates of a holiday they had already booked in order to get away before the event begins.

The most popular reasons for people heading overseas were to escape the visiting tourists and the inevitable blanket television coverage.

“We have had customers who just want to get away from it all while the Olympics are on,” said Bridget Keevil, a travel agent with Travel Stop.

“We have seen a definite rise in inquiries and bookings for that period – some people have said they want to get as far away as possible – even to places like Vietnam and Thailand.”

The Games have even prompted people into leaving the country, with one in six saying they would otherwise have holidayed at home were it not for the Olympics.

People living in and around London, as well as those in Weymouth and Windsor, are the most likely to go abroad while those in Northern Ireland and Wales are the least likely.

If you are planning a trip abroad, investing in a prepaid travel money card is a good way to avoid high bank charges and expensive foreign ATM fees.

Prepaid365 Awards 2012 – Daily Survey Winners March 2012

Prepaid365 — Sun, 01 Apr 2012 18:00:31 +0000

Listed below are the winners of the Prepaid365 Daily Survey Competition sponsored by Lebara Money and T24 Prepaid in March 2012

All the best for the new Daily Survey comptitions sponsored by Kalixa and T24 Prepaid in April 2012!

Keep Tweeting!

Changes to Credit Card Statements Announced

Alex Prescott — Thu, 29 Mar 2012 13:55:55 +0000

Credit card customers will be getting a different sort of statement through their letterbox this year, the UK Cards Association has announced.

There are currently 31 million card users in the UK, and they are set to see a new type of credit card statement for the first time this year.

The new statements are designed to make it easier for credit card customers to see how they have been using their card in the past year.

It has been designed by the UK Cards Association, in a partnership with the Department for Business, Innovation and Skills.

The statement will feature a range of details about the credit card, including the total spend on the card, the amount repaid, and any charges or interest fees incurred.

“Annual credit card statements will help empower customers by giving a clear view of how they’ve each managed their plastic over the past year,” Melanie Johnson, Chair of The UK Cards Association.

“By clearly setting out costs and charges this industry initiative could help customers get a better deal either by being more savvy about how they use their current card, or by changing to another account that’s a better fit.”

Each credit card company’s statement will include the same information, making it easier for customers to compare different cards.

Some credit card companies have already started sending out the new statements, while other customers will see their first annual statement on the anniversary of the date the account was opened.

As well as total spend and amount repaid, the new statements will also show customers exactly how they have used their card in the last 12 months.

This will be done by providing details of point-of-sale spending, and any cash advances or balance transfers. These types of transactions will also come with details of any interest fees or charges incurred.

As well as transactions made in the UK, the new statements will also provide information on any foreign transactions, and the charges they incur.

The new statements will certainly make it easier for cardholders to manage their credit card spending, but using a credit card can still make the debt add up.

Another option is a prepaid card. These work in much the same way as a credit card, but are not tied to a bank account of any kind.

Not only does this make it impossible to build up debt, as you can only spend the amount you load onto the card, but you are in no danger of being the victim of fraud.

Men Spend More With Credit Cards Than Women

Lucy Harper — Wed, 28 Mar 2012 16:09:10 +0000

Men spend more money on their credit cards than women do, research into our credit card spending habits has revealed.

It was found that the average male credit card user will spend 15% more with his plastic than the average female card user will.

The research also revealed that men spend more than women on typically male things, such as cars, sports and hardware.

Conversely, women were found to spend more than their male counterparts on typically female things, like clothes, healthcare and pharmaceuticals.

The gender-stereotypical spending is an interesting finding from the research, which was conducted by the Card branch of Santander.

It found that, when it comes to credit card spending, men are all about their cars. Men spend an average of 113% more than women on car rental with their credit cards.

Other car-related spending included at car accessory outlets, where men spend 108% more than women; and repair shops, where men spend 68% more than women.

It was also found that men spend more on keeping their car running, spending 63% more than women on credit cards at the petrol pumps.

Other areas where men out-spend women with their credit cards include on sporting events, hotels, dining at restaurants and drinking in bars.

But there are plenty of areas where women outdo the men on credit card spending. In true gender conformation, credit card spending is all about shopping for women.

The research found that women spend 83% more than men with their plastic in clothes shop, while also spending 38% more at department stores.

As well as dressing well, women also want to look and feel good. It was found that they spend 87% more than men at pharmacies, and 20% more on health care.

But it’s not all clothes and home furnishings; it seems women are taking on the weekly shop – spending 12% more in supermarkets than men.

“It’s revealing that people seem to conform to gender stereotypes in their credit card usage, with women using their cards more in clothes shops and department stores and men spending more on their vehicles, in sports shops and in bars and restaurants,” said Adam Mussert, from Santander Cards.

Credit cards can be useful for consumers, with some offering a range of rewards. But they can also be a dangerous spending tool, forcing people into heavy debt.

A prepaid card is a far more sensible option for both men and women. By loading a set amount on a prepaid card, there is no danger of over-spending or acquiring debt.

Contactless Card Holders in Danger of Electronic Pick-pocketing

Alex Prescott — Tue, 27 Mar 2012 17:05:32 +0000

Millions of card holders are in danger of having their card details stolen electronically by thieves with smartphones equipped with special software.

An investigation has revealed that users of Barclays’s contactless credit and debit cards are in danger of having their card’s data extracted just by waving a smartphone over their wallet.

The electronic data only includes the information seen on the front of a card, and not the PIN or security code. But the data can still be used by the electronic pickpockets to buy things on shopping websites that don’t ask for the security code.

The contactless cards from Barclays have been hailed as the future of payment in the country, making it far easier to pay for things with a credit or debit card.

The technology involves a chip in the card that is held up to a card reader in shops, meaning payments can be made quickly and without having to enter a PIN.

But an investigation by Channel 4 has found that the 15 million customers who use the contactless payment technology could be at risk of electronic pick-pocketing.

“We call on the card issuers to act quickly to address this issue and to cancel and replace cards if necessary,” said a spokesman for the Department for Business, Innovation and Skills.

“We have always emphasised the importance of data security in initiatives such as midata (the government initiative to give individuals access to their personal data on mobile phones and online) and this contactless payment facility clearly has some serious weakness in this regard.”

The investigation found that specially designed, simple software can be installed on a smartphone that allows thieves to simply brush their device past a person’s wallet or bag.

So far, the smartphone software has only been able to access card data for Barclays Visa cards.

“The details obtained should not be sufficient to undertake any fraudulent activity, but we do depend on retailers upholding the same high standards of security when verifying payment details,” said a Barclays spokesman.

“As a matter of urgency we are now engaging with retailers to ensure they are undertaking adequate and robust checks. We remain committed to contactless and firmly believe that it continues to be a safe and viable payment system.”

The findings of the investigation will be worrying for contactless card users with Barclays. Many of them may want to switch to a prepaid credit card, as they are safe from fraud and are not connected to any specific bank account.

Mild Weather and Fee Hikes Boost Trading for easyJet

Lucy Harper — Mon, 26 Mar 2012 12:55:34 +0000

The mild winter weather this year has led to a trading boost for easyJet, the low cost carrier has announced.

Winter has been unseasonably mild this year, which has led to far fewer flight cancellations for the majority of airlines.

Low-cost carrier easyJet has announced that the mild weather, along with a number of other factors, has driven it to reduce its loss expectations for the first half of the financial year.

Many travel businesses often record a loss in the first half of the year, as the majority of travel revenue is generated throughout the summer and into autumn. easyJet is no different, but has enjoyed a far more positive start to 2012 compared to recent years.

The airline now expects a pre-tax loss of between £110 million and £120 million for the six months ending on 31 March this year.

This is a reduction in easyJet’s previous loss expectation, which was between £140 million and £160 million. It is also a marked improvement on the first half of last year, when the airline recorded a loss of £153 million.

As well a huge drop in flight cancellations, the warm weather also contributed to lower costs for easyJet. The airline has said that disruption and de-icing costs were £18 million lower this year than in 2011.

“Although the economic environment remains weak, easyJet’s strategy of affordable fares and our focus on making it easy for our customers ensures that easyJet is well positioned to deliver good results for shareholders,” said Carolyn McCall, easyJet’s Chief Executive.

“We continue to expect the environment for airlines to remain difficult. We will continue to deliver for our customers, focus on operational excellence, manage our costs tightly and allocate our capacity to the markets that will deliver the best financial return,” she added.

The airline also reported an increase in revenue from seat sales. It said that the revenue it earns per seat has gone up by 10% in the past six months.

But at least half of this increase comes from extra costs to passengers, with fees and charges (including credit and debit card fees) for passengers travelling with easyJet both increasing.

The airline has increased its first-bag charge by 16.9%, to £4.70 per seat, while total fees and charges for passengers went up by 26.7% to £5.88 per seat.

Holidaymakers may be facing ever-increasing charges from airlines, but savings can still be made on holiday. Investing in a prepaid travel money card is a good way to avoid high bank charges for foreign card use, while also achieving a good exchange rate.

Google Re-enable Prepaid Credit Card Feature for New Application

Philip Thomas — Sat, 24 Mar 2012 10:57:56 +0000

After being forced to suspend all prepaid credit card functions on their innovative Wallet mobile app following the detection of a security flaw, Google have announced that the service is now back up and running.

An official company email stated: “We are happy to announce that you can now add the Google Prepaid Card back to your wallet with the newest version of Google Wallet.

“To add the Google Prepaid Card back, you will first need to update your Google Wallet application to the most recent version.”

It was revealed last month that unauthorised access to prepaid credit card balances could be granted on mobile devices.

This potentially allowed anyone to get hold of (and spend) any existing balances on a prepaid card linked to the Google wallet application.

Digital pick pockets were able to access the cash by tapping into an existing balance on a wallet and simply changing the settings.

The discovery was made by a blogger known as The Smartphone Champ.

The mysterious character demonstrated that by going into the settings on an Android phone and blanking all the settings for a Google Wallet, anybody could conceivably gain access to a prepaid credit card linked with the device.

It was a damaging revelation for an application that the IT giant was particularly proud of.

It is worth noting that this new solution to the problem will only work for customers who are re-initialising Google Wallet on the same phone.

Anybody who wishes to set up their details and cards on a new device will have to contact Google initially to get started.

Additional security issues

Google have also been under scrutiny recently for other issues related to the new application.

One particular security company recently devised a method for cracking a PIN for the wallet.

Zvelo, the web security provider, suggested that the PIN for the wallet WAS NOT stored in its ‘secure element’ within the Android operating system.

Google claims that this can be prevented if the phone owner activates a specific screen lock feature on their phone.

This requires an additional PIN to be entered whenever the phone is activated. If the thief does not know that PIN, then they cannot get into the phone to get access to the prepaid funds.

Prepaid credit cards are generally a safe method of using cash. It is not connected to any bank accounts and, therefore, in the event of theft there is no risk of ID fraud.

Ryanair under fire for £10 charge for emergency exit seats

Lucy Harper — Thu, 22 Mar 2012 15:20:12 +0000

Budget airline Ryanair has come under fire for refusing to let passengers sit in seats next to emergency exit doors unless they pay a £10 fee.

The Irish Aviation Authority is launching an investigation into the safety implications that come with these charges, as the seats are regularly left empty.

Despite not allowing passengers to sit in the seats if they don’t pay, the low-cost carrier still expects those in surrounding seats to follow instructions on how to open the doors in an emergency.

Many passengers have raised concerns about being asked to open doors that were at least a row in front or behind them.

The British Airline Pilots’ Association also raised safety concerns about the policy, while the Civil Aviation Authority said Ryanair should review its policy.

But Ryanair has defended the policy, claiming that all passengers on flights are given the same safety instructions regardless of where they sit on the plane.

“We will continue to discuss the matter with the IAA,” said Stephen McNamara, Head of Communications for Ryanair.

“We do not believe this to be an issue as all Ryanair passengers are provided with the same safety and evacuation information.”

This is not the first time that Ryanair has come under fire for its hidden charges and extra fees that it levies against its passengers.

The online check-in, that replaced airport check-in, charges £6 per passenger per flight, and failure to print out a boarding pass results in a surcharge of £60 per passenger.

But Ryanair does offer a prepaid card, to help passengers save money when booking flights, as well as when spending on holiday.

“All UK passengers can access even more great savings with the ‘Ryanair Cash Passport’, which is available to UK passengers directly from Ryanair.com,” said Ryanair’s Stephen McNamara.

“Ryanair’s £6 admin fee will not apply to any bookings made with ‘Ryanair Cash Passport’ and there are no transaction charges for using the card at UK merchants until 31 March 2012.”

Passengers are facing more charges for travelling abroad as it was recently announced that Air Passenger Duty is to go up by 10% from next month.

The hike will mean that a family of four will be charged an extra £250 for a trip to Florida, and around £360 for a flight to Australia.

But people going on holiday this year can still save money by using prepaid travel money cards, which offer savings on exchange rates while avoiding heavy bank charges.

No related posts.

Virgin Airlines to Team up for Reward Scheme

Lucy Harper — Wed, 21 Mar 2012 16:52:32 +0000

Virgin Airlines is to take its flight rewards system global, by linking up the scheme across its different airlines around the world.

People in the UK will know Virgin Atlantic Airways, but the multi-national company has a number of airlines around the world.

These include Virgin America and Virgin Australia, which are linking up with Virgin Atlantic to offer global benefits to frequent flyers.

“Virgin got into the airline business three decades ago to offer great value and a brilliant experience,” said Sir Richard Branson, Virgin Group Founder

“Today’s travellers still choose Virgin for the same reason: because we do things differently. I am thrilled that we can now reward our loyal guests with the ability to fly around the world on Virgin.”

Under the new plans, frequent flyers on any of Virgin’s airlines will be able to redeem their points across all three carriers.

That means that those earning points regularly with Virgin Atlantic will be able to use them to fly to any Virgin destination around the world.

The move has been welcomed by the various Virgin airlines, who have said they look forward to generating more business as a result of the new initiative.

“As a new US airline, our guests have believed from day one that we could create a better travel experience here in the States,” said Virgin America President and CEO David Cush.

“As we prepare to mark our fifth year anniversary, we are thankful to the travellers who got us where we are today and excited to take their benefits to the next level with global rewards and continued Elevate program enhancements in 2012 and beyond.”

There are a number of businesses under the Virgin banner, including Virgin Money which offers a prepaid travel money card.

Like other travel money cards, it offers customers safety and convenience when travelling abroad.

More and more people are using travel money cards when they go on holiday in the current climate. It was revealed recently that up to £1 billion is taken from British bank accounts through people using their card abroad and incurring subsequent charges.

Customer body Consumer Focus has complained that Brits are forced to pay extra bank charges which can often seem misleading or unclear. Consumer Focus suggested that someone who is taking £200 out of a foreign cash machine would currently incur an average charge of £10. On top of this, someone who converts £500 into Euros will be charged as much as £30 for doing so. Consumer Focus has also stated that this is far from ideal.

Initial Load Limits Dropped on Virgin Money Travel Cards

Shoppers Use Prepaid Cards as Economy Shows Signs of Recovery

Philip Thomas — Wed, 21 Mar 2012 08:08:08 +0000

Early indicators suggest that the UK economy is starting to show signs of recovery and looks to have avoided a double-dip recession.

The National Institute of Economic and Social Research have estimated that Britain’s economy grew by 0.1% in the three months up to February.

This is a much better outlook than the previous report, which showed that the British economy contracted by 0.2% in the three months up to January this year.

In terms of trade, Britain has seen a recent improvement in exports. After the recession, exports from the UK were down – driven partly by a weakened demand from other countries.

But that has started to change, and British exports to China are growing at a rate of 20% per year. Net trade also made a positive contribution to GDP in the fourth quarter of last year – driven by a growth in exports and a decline in imports.

Manufacturing is another area helping to pull the British economy back to its feet. Manufacturing output was found to have increased by 0.1% in January this year.

While this is less of an improvement than was hoped for, indications suggest it will continue to grow for the rest of the quarter. The fall in inflation will help the sector, as manufacturers will be paying less for raw materials.

A slower rate of inflation has also helped the retail industry, which had an unexpectedly strong Christmas period. Inflation now stands at 3.4% – a positive sign for the year ahead.

The UK retail industry may have benefitted from a positive period of spending over Christmas, but this doesn’t mean that savvy British shoppers will stop looking for new ways to gain value on the high street. Prepaid cards are becoming increasingly popular.

An innovative new addition to the prepaid credit card market may offer exactly that. The new Pockit prepaid card, a unique MasterCard which was launched this month, may be able to help shoppers get the most from their spending.

Danny Jatania, CEO of Pockit, explains the benefits of the new card:

“Everyone wants the best value out of their shopping now, not just people on a budget. While prepaid cards are useful to keep a lid on overspending, consumers from all sorts of backgrounds are using them.”

The new Pockit Prepaid MasterCard offers savings on purchases from partners including Marks & Spencer, Talk Talk and Aviva.

The card is available on a pay-as-you-go or monthly contract basis. The pay-as-you-go option has a one off-fee of £5 and 45p for each additional transaction. The monthly contract will cost you £3 per month.

American Express to Expand Prepaid Travel Card Plans

Alex Prescott — Mon, 19 Mar 2012 23:32:45 +0000

American Express has predicted that the prepaid travel market will be worth more than $1 billion within the next five years.

The prediction comes as the company plans to launch their range of prepaid travel cards within the BRICS market, which is comprised of Brazil, Russia, India, China and South Africa.

The market has been growing rapidly in recent years and, subsequently, has attracted interest from several industries around the globe that are looking to exploit the emerging market.

The countries which comprise the market are all popular travel destinations for globetrotters around the world. Because of this, the idea of using prepaid travel cards could really be set to take off.

Prepaid travel cards have become a very useful alternative to carrying large amounts of cash for travellers all over the planet. For anybody planning an extended trip abroad this Summer, it could be a terrific investment.

The perils of using an ATM abroad

This announcement by American Express follows the recent news that British holidaymakers spent over £391 million in ATM withdrawal fees while travelling abroad in 2011.

According to research carried out by Sainsbury’s, an estimated £14.2 billion was withdrawn by British holidaymakers over the same 12 month period from cash machines outside of the UK.

The average charge for an ATM withdrawal within the Euro-zone was found to be approximately £1.67, with some cash points charging up to £2.66.

David Barrett, Head of Sainsbury’s Travel Money, stated; “As a nation, we spend a huge amount every year on our holidays.”

Prepaid travel cards could be the ideal solution for those who are worried about ATM fees while travelling abroad.

Regardless of whether you are staying in Europe or going overseas, you can preload money onto a prepaid travel card before you leave, ensuring that you don’t have to worry about dealing with large cash sums or unwelcome ATM charges.

The Daily Tweet to Win Competition Getting a Bit Too Popular

Prepaid365 — Tue, 06 Mar 2012 03:30:42 +0000

The Prepaid365 Daily Survey Gets a bit too popular for some – Get in it to WIN it! http://www.prepaid365.com/awards/2012/dailysurvey.html

[sociable] Share with Your Friends and Family [/sociable]

Enter Daily to win a Free Lebara Prepaid MasterCard with £10 Spend Money - http://bit.ly/zD1ECW

Smashing New Social Competitions With Prepaid365 – iPad2 and more!

Prepaid365 — Thu, 01 Mar 2012 02:15:08 +0000

01.03.12 – The Prepaid365 Team are back with some smashing new social media competitions designed for those who would love to get their hands on Apple iPad2, one of our 3 mystery prizes in addition to our daily giveaways. So over the next 90 days, get ready to win prizes galore as the Prepaid365 Team get ready to celebrate the Prepaid Industry with the launch of the 2012 edition of the Prepaid365 Awards sponsored by T24Prepaid – www.t24prepaid.com.

WIN, WIN, WIN

The new competitions are being launched based on the success of the resoundingly successful “Tweet to Win an iPad Contest with Prepaid365″ that we ran last year but this time there are prizes galore, with Daily winners winning free prepaid cards with spend money too.

Are you excited yet? Well, we are too and here is what you need to do.

Competition 1: Tweet to WIN a FREE Prepaid Card and Spend Money – Daily Competition with additional Monthly Surprise Draw – Click here
&
Competition 2: Tweet to win an Apple iPad2 with Prepaid365- Click here

Get in it, to Win it! All the best from the Prepaid365 Team!