life of balance credit card have low intro rates or even for the life of the initial transfer.

The definition of a prepaid credit card is: A payment card (usually MasterCard, Maestro, Visa Electron or Amex), pre-loaded with your own money, which you can then use wherever the payment card is accepted, including on the internet and abroad. A prepaid card is much like the gift cards available from most high street chains in the UK, however, prepaid cards have a much wider acceptance, and can be used internationally. They are the same as credit cards, but without the credit. The majority of UK prepaid card providers offer cards embossed with your own name, and some are even CHIP & PIN cards.

Whilst prepaid credit cards can be a very useful product for those with a good credit rating, many card providers target their prepaid products at those with bad or no credit history. With the number of IVA's (Individual Voluntary Arrangement) and bankruptcy cases on the increase, there is a growing population in the UK that are unable to get a traditional credit or debit card, without paying extremely high fees.

So, you have got your new prepaid card, you set off for the sun, but then find you get declined at the airport when trying to hire your car. You have plenty of money available, so what's wrong? If you plan to use your prepaid card to hire a car whilst on holiday, or even within the UK, you need to proceed with care! Many UK prepaid card issuers have "transaction usage restrictions" outlined within their terms and conditions. Admittedly, these are intended to protect both the card issuer, and customer, however, if you are unaware, it could result in your card being declined whilst trying to hire a car.

If you don't have a debit or credit card, or simply just don't want to use your bank account or credit card details online, prepaid cards provide a great solution. You can use your prepaid card to register on paypal and start sending money or shopping on ebay immediately. However, if you are registering for a new paypal account, you will be subject to a reduced spending limit (currently £1000). Once this threshold has been reached, you are required to verify your paypal account and register bank account details, in order to lift this spending limitation.

Prepaid cards work just like a normal debit or credit card, with the exception that all transactions are approved and authorised by the prepaid card provider. So, unlike a debit or credit card, where you could go over you credit limit or overdraft, you are restricted and only able to spend funds that you have available in your prepaid account. It's much like a pay as you go mobile phone, where if you run out of credit, you can no longer make calls! Once you have run out of credit in your prepaid account, you need to top-up before you can continue using it.

We frequently receive e-mails from consumers asking if prepaid credit cards can be used on online gambling sites. Many of the prepaid credit cards available in the UK do have gambling or "Adult content" merchant restrictions. This is primarily as a number of the cards are available to persons under the age of 18.

Prepaid cards may look and feel like debit or credit cards, however, they are not. No "credit" is being advanced, and you are not required to sign a credit agreement. After all, its your own money being paid into the pre-paid account. You do not have to pass a credit check, so people with current or previous bad credit or CCJ ‘s are still approved for a prepaid card. Your identity and address are still verified during the application process, but you will not get declined for bad credit.

We receive many questions from customers asking if prepaid credit cards are accepted on gaming websites, such as second life. So, you have registered an account with Second Life (www.secondlife.com), but now need some Linden Dollars, to buy that new virtual house that you have had your eye on for some time. You could get a virtual job, but it would just take too long to earn the cash required. You need to dip into your real life funds, and purchase some Linden Dollars for some real pound notes.

Clearly, for some people, prepaid cards provide a useful method of payment in these circumstances. The main reason being the anonymity that a Pre-paid card provides, as unlike credit or debit cards, prepaid card issuers don't generate postal statements. So, no explanation is required when a statement arrives on the doormat with an unusual or creative merchant description.