By Dan Ilett, 23 September 2005 17:20
NEWS
MasterCard has released a pay-as-you-go plastic card for people with no bank accounts who want to make internet and phone payments.
The card, which requires no credit checks to obtain, is interest free and allows the owner to spend only what has been paid onto it in advance.
Advanced Payment Solutions partnered with the firm to launch the card, Cashplus, which can be used for withdrawing money from ATMs.
In a press statement, Rich Wagner, CEO for MasterCard's advanced payment solutions, said: "Cashplus offers a secure payment facility for the millions of unbanked Britons. It gives them access to ATM machines. It can be used globally and offers payment options previously unable to them, such as online bill payment."
There is an initial fee and monthly subscription for the card.
Prepaid cards are already in use in the US.
Comments
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1. Simon
Hmm, a card that only allow you to spend what is already in the account, and doesn't give credit facilities.
Isn't that a bit like .... a debit card ?
In the UK at least, I was under the impression that the banks had been told to provide 'basic bank accounts' to pretty well anyone so as to deal with the problems of paying out benefits to people without an account to direct credit them to - so no need for a pay-as-you-go card with a monthly fee !
2. anonymous
It's like a debit card yes. But until you've had a divorce like mine, with irrepairable credit history damage, you won't realise it's possible to earn 60k a year, have a house with 100k+ equity and still not be able to open a bank account --- even if you don't want an overdraft facility
3. anonymous
Yep, I was a silly idiot in my 20's and lost my credit rating. Managed to get bank accounts but credit cards wont touch me with a barge pole. I like the idea of the Cashplus card but the fees are quite high. Good for occasional use though if I need to hire a car or something which needs credit card authorisation.
4. Sam Knox
In Reply to Simon.
You're right, the banks are required to offer a basic bank account, regardless of status.
However, they aren't required to issue a debit card with the account. The most they are required to do is issue a hole-in-the-wall, or ATM (cashpoint) card.
These offer no debit card facilities whatsoever, so holders of these cards are still excluded from using online and telephone payment services.
5. anonymous
In response to Simon, it appears that most banks won't offer even the basic bank account to undischarged bankrupts.
6. anonymous
I was allowed credit as a student and had several store cards/credit cards etc... got into trouble and am still paying them off...and now I have a full time job earning £30k I cannot get a credit card anywhere..I do have a debit card - Visa Electron - which is virtually useless when it comes to online, phone orders, hotels and car hire ...
It is also quite embarrassing having a financial planning execitive for a new boyfriend...!! I have to get out my sad Ekectron card and he has several multi platinum cards..! So having a mastercard is hopefully going to prove usefull for me...!
7. anonymous
I DONT KNOW WHY BANKS DONT LET EVERYONE (NO MATTER WHAT THEIR STATUS)HAVE A DEBIT CARD ANYWAY...THEY ARE NOT ACTUALLY GIVING YOU ANY MONEY..AND YOU CANT SPEND WHAT YOU HAVE NOT GOT ON THE CARD SO?
I DONT KNOW WHY THE BIG FUSS IN TURNING PEOPLE DOWN
8. anonymous
I THINK THIS IS A BRILLIANT IDEA!!
I AM UNABLE TO GET A CREDIT CARD SO THIS ENABLES ME TO SAVE AND USE THIS CARD TO PAY ONLINE WHERE I WAS UNABLE TO DO SO BEFORE...AND THERE ARE NO INTEREST CHARGES LIKE THERE ARE ON THE BASIC CREDIT CARD AND I CAN NOT GET INTO DEBT WITH IT!
9. DoCtOr_oCtOr
FANTASTIC ... I CAN NOW BUY THINGS OVER THE INTERNET USING CAPITAL LETTERS ... PREVIOUSLY I HAD TO USE THE CHEAPER LOWERCASE...