With a prepaid credit card you are always assured of money en route, you also do not have to borrow money or be in red with corresponding high interest because you can only spend what is on the card. For applying for a prepaid credit card, a more negative credit history is no problem because no credit check is performed. Also submitting to payslip or other papers is not necessary.
Request prepaid credit card
You can use the prepaid credit cards wherever you see the logo on the card, this can be Visa or Mastercard. You can also use the card at ATMs for withdrawing money, even if it is in a foreign currency.
Please note that in addition to the costs charged by your own card, costs can also be charged by the bank that delivers the money via the cash machine. This differs per bank and per country. These costs can run high, so keep an eye on this.
If you are going on holiday to a far and exotic country, inform the company that supplied your prepaid credit card. If you go to PIN in certain countries or log in to your online account, the system can suspect fraud and block the card and your account. If you report in advance that you are going to a risk country (usually outside of Europe) then this fraud report can be turned off.
Nothing is more annoying that when you want to pay somewhere or get money from a machine, you get the message that your account has been blocked due to suspected fraud. This rule has only been introduced to prevent miscreants from plundering your account.
Pay for car rental or hotel
In certain countries (including the Netherlands) a deposit is required when renting a car or paying for a hotel room. This deposit is then reserved from the card you pay with and only released later, this can take quite a long time, 45 days is not uncommon, you cannot spend this reserved amount and have to wait until the relevant company again releases.
When renting a car (especially in the Netherlands) it is often difficult to pay with a prepaid credit card, in the best case scenario you have to take all-risk insurance on the rental car, in which case the rental company runs no risk in the event of damage to the car. car. In some cases, the prepaid credit card is not accepted at all. Before you make a reservation, it is advisable to contact the rental company to explain that you want to pay with such a card and whether they agree.
Toll roads and planes
Since the prepaid credit card has no credit, but can only use the credit on the card, it is not suitable for toll roads and also not suitable for paying on the plane. So make sure you have enough cash with you to be able to pay these costs in cash.
In the Netherlands there are still large companies that do not accept all cards and often have difficulty with prepaid credit cards, this is because their equipment is not designed for this, large companies where I have encountered this are Blokker, V&D and HEMA. But especially small stores that do accept cards often fail to pay with a foreign card or a prepaid credit card, which is difficult, but keep this in mind. In the hospitality industry, the card is generally accepted.
Some prepaid credit cards also offer some extras such as additional travel insurance, and compensation for damage to your purchased items. Certain conditions have been set to prevent fraud, but they are still nice extras for which you do not have to pay anything.
Limits on the prepaid credit card
It works differently for all cards, but in general the better you know the card issuing company, the higher the limits for depositing, withdrawing and transferring money to third parties. Some cards work with levels, you enter level 1 with a limit of 1000 euros per year, if you want to increase this limit then you will have to send your identification with proof of your address.
If you then want even higher limits, say more than 15,000 euros per year, then you will have to explain where the money you are going to deposit on this card comes from. This is to prevent money laundering. All this data remains with the company itself and is only used when criminal activities are suspected.
Paying online with a prepaid credit card is actually not a problem anywhere, whether you do this in a Dutch store or in a foreign online store. When ordering online, always pay attention that the date is sent encrypted, you can see this on the lock on the left in your address bar.
If you do not know the online store, make sure that it is a real store and not a fake web store that is only trying to steal your money. Certainly websites that sell prescription drugs are almost all fake and only set up to get hold of your card details. So don’t do this!
Tip for requesting a prepaid credit card
If you are going to apply for a prepaid credit card, pay attention not only to the annual costs, but also to the costs per transaction, it is better to pay a little more per year with lower transaction costs than the other way around.