O2 Money card could help holders to control their cash flow
An O2 Money card could be a great way for card holders to keep control of their spending.
More from Prepaid Cards
8 November 2009
O2 Money Card
bringing a fresh, transparent and customer-focused approach to pre-paid cards”
An O2 Money card could be a great way for card holders to keep control of their spending. It is impossible to spend more money than what is already loaded on to the card, so there is no danger that holders of the O2 Money card will go into the red. The card can be used in conjunction with any account as is it possible to transfer spending money from any bank account on to the O2 Money card.
Card holders are also never stuck not knowing how much money they have available as free real time balance alerts can be sent directly to their mobile phones. Once they have found out how much money they have available, card holders can then use the unique budget calculator online to work out what they can afford to spend.
The cards were launched earlier this year with Visa and are powered by NatWest. For those joining now, a special reward scheme is currently on offer. A £5 thank you will be given to those who join up and load £50 on to the card in two consecutive months. The offer is available to those who sign up for a regular monthly load of £50 or more.
Whereas in the past prepaid cards may traditionally have been seen as cards designed for those with imperfect credit records, the O2 Money card could have benefits for a much wider audience. It could be a perfect solution, for example, for those who would like to ring-fence their spending money away from money that goes towards their mortgage and bills. The card is also great for those who worry about incurring penalty fees or charges when spending money on cards, as on the O2 Money card it is impossible to go overdrawn and thus to be charged penalties.
Parents may also want to consider taking out an O2 Money card for their children. Parents are able to load money onto their child's pre-paid cash card online. It could also help children 13 or over because the cards offer the benefits of a Visa card but within a safe framework.
Other prepaid cash cards are also available, such as the Eclipse and Freedom prepaid pay-as-you-go MasterCard and the White Eagle Prepaid Maestro Card. The advantage that the O2 Money card has over these and other alternatives is that it there is no charge to purchase the card. There is also no monthly service fee, which is the case for some other prepaid cards. However, the O2 Money card is only available to O2 customers.
Ronan Dunne, O2's UK chief executive, explained on the card's launch earlier this year: "By bringing a fresh, transparent and customer-focused approach to pre-paid cards, we plan to drive this market and take a significant share. In partnership with NatWest, O2 Money is delivering new ways of helping our customers better connect with their money."
There are also other prepaid cards on the market, specifically aimed at those who travel abroad. FairFX, CaxtonFX and MyTravelCash all offer prepaid currency cards, allowing travellers to buy their foreign currency before they go abroad. This could save those going on holiday or travelling for work money, as buying currency last minute can be more expensive than buying it in advance.
