Prepaid cards can protect users online
11 May 2011 16:04:42
Using prepaid cards for internet shopping can limit fraud risk. Online shoppers could dramatically cut their risk of being defrauded by making internet payments using everyday prepaid cards, it has been claimed. According to prepaid cards provider EZPay, these cards could also be used by online gamers who are worried about their details being leaked, following the recent breach of Sony’s PlayStation Network. The company explains that one of the main benefits of prepaid cards is that, even if retailers’ records are compromised, hackers can only steal funds that you have pre-loaded.
Use a prepaid card to stay safe online
Because of the way that prepaid cards work, consumers can limit the risk of having their funds stolen by only loading them up with money when they wish to make a purchase. If they do not store additional funds on their cards, then fraudsters will have nothing to steal even if they do acquire access, unlike with credit cards that can be maxed out. EZPay also highlights the fact that the vast majority of online retailers and video game providers now accept prepaid cards alongside debit and credit cards, meaning that consumers do not have to worry about finding accommodating retailers.
The prepaid cards provider recommends that consumers use one card for all their online activity, so they only need to cancel a single account in the event of a data breach. Using a unique password is also crucial, as people who reuse such details will find themselves vulnerable across numerous websites if one of their online accounts is hacked. Paul Smith, managing director of EZPay, said: “Using prepaid cards is a simple solution to losing large sums since you cannot spend beyond the amount loaded, so even if your chosen retailer is compromised only the amount loaded on the card is at risk.”
Other benefits of prepaid cards
While prepaid cards are an attractive solution for those worried about their online security, they also offer significant benefits to other types of consumers. For one thing, they will not leave you in debt, as you can only spend money that you have pre-loaded onto the card. What’s more, customers with a poor credit rating do not need to worry about having their records checked when applying for prepaid cards. For foreign nationals who have just moved to the UK, prepaid cards will allow them to spend online even if they cannot get a bank account.
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