Best UK Prepaid Cards 2024

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Updated: Jan 15, 2024, 4:23pm

Laura Howard

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Reviewed By

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Prepaid cards offer an alternative to carrying around cash. They can be used in exactly the same way as a debit or credit card but must be topped up with credit first.

Prepaid cards can be an ideal solution for people without a bank account or with a low credit score. They are also popular among students on a tight budget as there is no risk of getting into debt.

Most prepaid cards charge fees however, which will need to be weighed up against the benefits – more on this below.

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Our pick of the top UK prepaid cards

Some prepaid cards are specifically designed for overseas use as travel prepaid cards – but what are the best prepaid cards for use in the UK? We’ve pulled together our pick of the best (January 2024). Full workings of how the cards are ranked are set out in our methodology, below.

Tesco Clubcard Pay+

Monthly fee

none

Minimum top up

ATM withdrawals

Free

Monthly fee

none

Minimum top up

ATM withdrawals

Free

Why We Picked It

Tesco’s Clubcard Pay+ has no monthly or annual fee, no loading fees, cash withdrawal or transaction fees or inactivity fees, making it an attractive option in the prepaid market. You’ll need a Tesco Clubcard to apply, but you can get a Clubcard quickly and easily by signing up online for free.

Once you’ve signed up to the Clubcard you can earn extra points when you use your Clubcard Pay+ prepaid card. It pays one point for every £1 you spend in Tesco stores and one point for every £1 spent on Tesco fuel (usually this is one point for every £2 spent). And as a welcome bonus you’ll get double points on all spending in Tesco in the first three months.

You can also earn one point for every £8 spent outside Tesco. When you spend using your Clubcard Pay+ card, you can round up purchases to the nearest pound and add the difference into a savings pot.

The card has to be opened and managed through the Tesco Bank app, so you’ll need a smartphone or tablet to use the card.

Pros & Cons

No fees
Money is protected under the Financial Services Compensation Scheme
Earn Clubcard points when you spend

You need a Tesco Clubcard to get a Clubcard Pay+
Can only be operated through the Tesco Bank app

Hyperjar

Monthly fee

none

Minimum top up

ATM withdrawals

No cash withdrawals

Open Account

On Hyperjar's Website

Monthly fee

none

Minimum top up

ATM withdrawals

No cash withdrawals

Why We Picked It

Hyperjar prepaid cards do not charge monthly or annual fees. There are no loading or inactivity fees either. But the major downside is that the card can’t be used for cash withdrawals from ATMs, so if you need a card for this it’s better to go with another provider.

The card account must be managed through the app and you can set up saving and spending jars in the app to help with budgeting.

There are no additional fees for using the card overseas for any currency.

Read Hyperjar review.

Pros & Cons

No usage fees
No fees for use abroad
Budgeting tools

Doesn’t allow cash withdrawals
Can only be operated through the app
No FSCS protection (although Hyperjar says customer funds are ring-fenced)

Revolut Standard Account

Monthly fee

none

Minimum top up

ATM withdrawals

Free up to five withdrawals or a maximum of £200 per month (2% thereafter)

Monthly fee

none

Minimum top up

ATM withdrawals

Free up to five withdrawals or a maximum of £200 per month (2% thereafter)

Why We Picked It

Revolut offers a fee free prepaid card option for use in the UK. There are no monthly or annual fees or inactivity fees on the Standard account. Top up the card via bank transfer for free and then use the card for spending and cash withdrawals. These transactions are free, except with cash withdrawals which have a limit of five per calendar month or a maximum of £200 per month – whichever comes first.

Revolut offers a range of add-on features including budgeting tools, free instant transfers between Revolut accounts and discounts on shopping with selected brands.

This could be a good card to choose if you want to use it abroad as it has no fees for overseas use and it uses competitive currency exchange rates. Users can also access Revolut ‘Experiences’ – an in-app marketplace for tours, activities and attractions.

By booking experiences directly through the app, customers could receive up to 10% cashback.

The account must be managed via the app. It can be opened by UK adults aged 18 and over.

Pros & Cons

No fees on spending in the UK and overseas
No inactivity fee
Budgeting tools and other perks, such as shopping discounts

Limits on cash withdrawals each month
No FSCS protection for your cash
Card delivery charge

Wise

Monthly fee

none

Minimum top up

ATM withdrawals

Two free per month – up to £200 each time (1.75% +50p charge thereafter)

Open Account

On Wise's Website

Monthly fee

none

Minimum top up

ATM withdrawals

Two free per month – up to £200 each time (1.75% +50p charge thereafter)

Why We Picked It

The Wise card is designed more as a travel prepaid card as it offers free use abroad. But it can also be a useful and low cost prepaid card for use at home. It may suit international students living in the UK, for example, who can then use the card at home.

There are no fees for UK spending (and it can be linked to Apple Pay and Google Pay). Topping up the card is quick and easy via the app with no charges and there are no inactivity fees. There is a limit on free cash withdrawals in the UK at two per month (up to a maximum of £200 each time). There is also a £7 card delivery fee.

Pros & Cons

No monthly fees or top up fees
No fees on overseas use
Budgeting tools

Limits on free cash withdrawals
No FSCS protection
£7 card delivery fee

Ode

Monthly fee

First year free, then £2.99 per year

Minimum top up

£10

ATM withdrawals

No cash withdrawals

Monthly fee

First year free, then £2.99 per year

Minimum top up

£10

ATM withdrawals

No cash withdrawals

Why We Picked It

This card is only available to NHS workers, carers, teachers and those working in education and healthcare. The main perk is cashback (ranging from between about 2.5% to 16%) on spending across more than 80 retailers, including major supermarkets, fashion retailers, restaurants, leisure and travel companies.

There is no charge for the card in year one, but then a £2.99 annual fee applies afterwards. Topping up the card is free as are UK transactions, but cash withdrawals are not possible with this Visa card. The card account can be managed in the app or online.

If you don’t use the Ode card for more than 12 months an inactivity fee is applied at £5 per month. Cash loaded on the card is not covered by the FSCS scheme.

Pros & Cons

Cashback on offer from a range of retailers
Can be used in conjunction with other discount cards and schemes
Free in year one

Annual fee after the first year
Fees applied if you don’t use the card
No cash withdrawals
No FSCS cover

Methodology

To arrive at our Forbes star ratings we looked at prepaid cards across the market with the lowest fees, for example for monthly/annual cost, UK transactions and ATM withdrawal fees.

In addition we looked at those cards that offered customers extra perks or benefits, such as budgeting tools and virtual savings jars, reward points and cashback.

What is a prepaid card?

Prepaid cards work in the same way as debit and credit cards in that they are usually Visa or Mastercards and they’re accepted as payment almost everywhere. This includes online, in shops, bars and restaurants. Many prepaid cards can also be used to withdraw cash from ATMs.

The main difference compared to debit and credit cards is that you can’t spend more than you have preloaded onto the card – so there is no credit facility. This means you can’t get into debt with a prepaid card. But it also means there won’t usually be a credit check in order to get a card.

How does a prepaid card work?

After your prepaid card account is open you can manage your card balance – checking your available funds and topping up the balance. This is usually done through an app or online. Typically you’ll be able to link your bank account to the prepaid card account to make transfers across to your card balance.

Once you have loaded up a balance onto the prepaid card you can use it to spend and withdraw cash in the usual way, subject to the terms and conditions of your prepaid card provider.

What about fees?

The major difference with prepaid cards, compared to a debit card linked to your current account or a credit card, is that they typically carry usage fees. These vary between prepaid card providers, but can include:

Monthly or annual fees
Inactivity fees (if a card is not used for at least 12 months, for example)
Loading fees (a charge to preload your card with cash)
Fees for cash withdrawals
Account closure fees.

When awarding our Forbes Advisor star ratings for prepaid cards we have focused on those cards with the lowest fees.

What are the pros of a prepaid card?

No credit checks
No risk of getting into debt
Quick and easy to apply for and manage
Safer than carrying cash
App-based budgeting and saving tools
Eligible for chargeback
Some prepaid travel cards are designed to be used overseas.

What are the cons of a prepaid card?

Fees usually apply
Limits on use – such as daily/ free cash withdrawals or spending
Usually no protection under the Financial Services Compensation Scheme (FSCS)
No protection under section 75 of the Consumer Credit Act
No pre-authorised transactions, such as for car hire or a hotel bill
Mainly app-based so require a smartphone.

Frequently Asked Questions (FAQs)

Will I be credit checked for a prepaid card?

No. As you are not borrowing, you won’t need a credit check to get a prepaid card, so it doesn’t matter if you have a bad credit score.

Can a prepaid card help build my credit score?

Typically, a prepaid card will not show up on your credit report – so it will neither help or harm it. However, with some prepaid cards, it’s possible to add on a ‘credit builder’ element which is recorded on your credit score.

You still won’t borrow money but the credit builder facility is charged for – and paying that charge successfully for the term of the agreement (usually, 12 months) can serve to positively impact your credit score.

What’s the minimum age to get a prepaid card?

Some providers stipulate that cardholders must be aged 18 or over. But many prepaid cards are available for under-18s and some cards are specifically targeted at younger consumers, for example cards designed for pocket money or with budgeting tools for kids.

What happens if I lose my prepaid card?

If your card is lost or stolen, you can get it frozen immediately by contacting the card issuer. You can then order a replacement card.

Will I get my money back if my prepaid card is used fraudulently?

If your card is stolen and used before you can alert the provider to apply a freeze, Visa or Mastercard – whichever is your payment network – will reimburse you under the Chargeback scheme. However, this is on the condition that you reported the card missing as soon as you became aware – and that there was no unreasonable delay.

There are other stipulations, too. For example, if the fraudster withdraws cash or makes a purchase with the card using the PIN, you will not be covered. PINs should not be written down and should never be kept with your card.

Your card provider is likely to conduct an investigation as part of the Chargeback process and this can take many weeks. So although you should be reimbursed for your losses it may not be quick.

Do prepaid cards come with any protection?

Yes. Like debit cards, prepaid cards are eligible under chargeback rules. This means you can apply to get your money back if an item or service you paid for was damaged, not as described or never arrived (including if the retailer or service provider has gone bust).

However, just as with debit cards, prepaid cards do not fall under ‘section 75’ of the Consumer Credit Act. This applies to credit cards and protects purchases of more than £100 and up to £30,000.

Many prepaid card providers aren’t banks which means they are not signed up to the Financial Services Compensation Scheme (FSCS) which protects up to £85,000 of your cash should the provider go bust.

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Information provided on Forbes Advisor is for educational purposes only. Your financial situation is unique and the products and services we review may not be right for your circumstances. We do not offer financial advice, advisory or brokerage services, nor do we recommend or advise individuals or to buy or sell particular stocks or securities. Performance information may have changed since the time of publication. Past performance is not indicative of future results.

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Jo Thornhill Editor

I am passionate about personal finance issues and helping consumers navigate the world of insurance, credit, savings and pensions. I have been a money journalist for almost two decades, including ten years on the award-winning personal finance desk at the Mail on Sunday.