WORRIED about shopping online in case you might be a victim of internet fraud? Or are you nervous about using your credit or debit card abroad? Worse, are you worried about a son or daughter away from home and are anxious to keep them topped up with enough money but not too much?

The answer could be a pre-paid card.

Just like a credit card, only different...

Pre-paid cards are very simple.

They look just like a normal debit or credit card. But like pay-as-you-go mobiles, you can only spend money which you have already loaded onto them. You can’t get into debt using one, because there is no overdraft or credit facility. If there’s no money on it, you can’t use it. Simple.

And it has none of your personal bank details attached to it, so the worst that could happen would be – as with your pre-paid mobile – that thieves could use the money that was on it, but no more than that.

Your card issuer is also able to block the card, so if you’re quick, you might not lose anything.

You can put money on by cash at a bank, through a bank transfer or in person at Post Office, Pay Zone or Pay Point terminals. Other people can put money on them, too, if you give them the details. Again, ideal for parents keeping tabs on children.

The Post Office card specifically for use abroad is called their Travel Money Card, but it’s the same principle.

With most of them you can check your transactions online so you should know exactly how much – or how little – you have available.

There are no credit checks, so if you have a bad credit history and can’t get a credit card, you can still have the convenience with a pre-paid card.

When you’re out shopping, you use them exactly like any other card.

You have a pin number and the card is accepted and authorised in just the same way. As long as you’ve got enough money on it, all is straightforward.

There are, of course, snags. Prepaid cards don’t pay you interest and they also cost money. And to make it more complicated, different cards charge different amounts for different services. Typical charges could be: ■ Purchase fee: Typically between £5 and £10, although some are free.

■ Monthly charge: Many are free, others charge up to £5.

■ Transaction fee: Many are free, some charge two per cent, ie £1 on something costing £50.

■ ATM fee: If you take money from the hole in the wall it could cost you anything from 99p to £3.

■ Top-up fee: Most cards charge you nothing if you top up your pre-paid card using your debit card, or at a Post Office. Doing it via Pay Point could cost three per cent – or £3 for every £100 you put on.

■ As with ordinary credit cards there are charges for use abroad.

Again, these vary from card to card.

VERDICT

In certain circumstances pre-paid cards can be very useful and very safe. Just be sure you know exactly how much they could cost you. And shop around to make sure you find the one that is most suitable for you.

Look on any of the comparison websites such as moneyexpert.com or moneysupermarket.com.