Don’t fall for Virgin’s prepaid card patter
Virgin Money is trumpeting the launch of its new ‘pay as you go’ card – which, it says, is aimed at people who ‘don’t have access to traditional banking facilities’.
But this is no philanthropic gesture.
Like many other ‘prepaid’ cards – which holders load up with cash then use, like a debit card, to shop or make ATM withdrawals – it is a breathtakingly expensive way to access your own cash.
Virgin is targeting migrant workers and young teenagers – who can ill afford to be ripped off – as well as UK adults travelling abroad.
But if fails to mention the charges until the footnotes of its press release.
It turns out there’s an application fee of £9.95 and replacement cards cost £4.95.
Although it can be loaded free at Post Offices and online, there’s a 2.75 per cent charge for anyone using a Pay Point and a 2.5 per cent credit card loading fee (with a £2 minimum).
And even the press release footnotes omit to mention what the website reveals: a 2.95 per cent fee is deducted each time the card is used to make a payment or cash withdrawal.
There’s also a 3.5 per cent overseas transaction fee.
Sounds to me like Virgin just gave itself a licence to print money.
