Making the Case for Pay Monthly Prepaid Cards | Prepaid365

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13 September 2011

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Cheaper to Use than Pay As You Go Prepaid Cards for Regular Users

Prepaid Cards have often been lauded as a way of staying in control and within budget with ones expenses and they have certainly proved to be an excellent mechanism for doing so.  Whilst some prepaid card providers offer pay weekly tariffs, they have not proved very popular with customers and the two tariffs which have gained maximum traction with consumers are the Pay Monthly and Pay As You Go tariffs.

Pay Monthly Vs Pay As You Go

A Pay monthly tariff as the name suggests is one that has a monthly management fee built into the programme. This fee is charged to consumers each month for the maintenance of their card. This typically entitles them to free transactions, reduced ATM withdrawals fees and other benefits which may not necessarily be available on pay as you go prepaid cards. These cards are excellent for those who use their prepaid card on a regular basis.

A Pay As You Go tariff as the name suggests means that you only pay when you actually use your card. This works well for those who plan to use their card occasionally. A number of prepaid card providers, prepaid stakeholders and  media usually suggest PAYG cards but we reckon that Pay monthly cards provide greater benefits.

The Case for Pay Monthly Cards

Whilst PAYG cards are good for those who wish to use their card occasionally, a pay monthly card is highly recommended and there are some simple reasons behind this.

  • Pay monthly cards have better fee rates – POS transactions typically tend to be free or reduced when compared to Pay As you go cards.
  • Pay Monthly Cards provided added benefits – Pay as you go cards usually have fewer benefits when compared with pay monthly cards. On Pay monthly tariffs, prepaid providers will usually include elements such as free purchase protection, credit repair or credit booster tools, etc
  • Pay Monthly Cards give you a better picture of your finances – With Pay monthly cards, you truly know where you stand with your finances. You know the exact fee you are paying each month and the exact cost of each transaction and the monthly fee so you do not have to calculate what each transaction is going to cost you. There is even greater clarity and transparency on a pay monthly tariff.

Not all Pay Monthly Cards are Created Equal

Whilst Pay Monthly cards are definitely recommended, it is important to note that different pay monthly cards provide different benefits. There are no frills pay monthly cards which provide an economic payment mechanism at the cheapest rate possible and then there are other pay monthly cards which charge marginally higher fees but provide those additional benefits. A sample comparison of the UK’s leading pay monthly prepaid cards is provided by leading prepaid card site Prepaid365 below.



*The average monthly cost is based on unlimited retail transactions and 4 ATM withdrawals and 4 reloads using cheapest option available. The First Premier easily saves you more than 5 Quid a month compared to other pay monthly prepaid cards as compared on 22.08.11. Please check these rates yourself to ensure they have not changed. Disclaimer applies.

Find Out More about these Pay Monthly Prepaid Cards

The table clearly demonstrates that there is a choice to be made when selecting a pay monthly card as well. The First Premier prepaid Mastercard is an excellent example of a pay monthly card which could help consumers over £5 in fees each month for a payment card that provides none of the frills which consumers never actually use.

So whilst Pay As You Go prepaid cards may be good for occasional use, pay monthly prepaid cards actually provide better value for regular users.

Find out more about prepaid credit cards and compare and review Prepaid Cards for travel, money transfer, youth, banking and payroll at Prepaid365 – the prepaid card comparison site.

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