Prepaid cards offer peace of mind for parents as their kids set off for university
15 September 2015
Many parents are bound to be worried about their children’s finances when they head off for university, but PrePay Solutions, the European leader for prepaid services, may have the answer. By providing university students with prepaid cards, parents can be sure that their children always have easy access to the funds they need to buy the essentials – without overspending or running up loads of debt.
A prepaid card is not a credit or debit card, so students can only spend what is on the card. Parents can load the card with any amount they wish and then reload it as necessary, either online, on smartphones using dedicated apps, or with cash at selected locations.
Unlike debit and credit cards, prepaid products offer real-time spend information via apps and online. This way students – and their parents – can see exactly where they are within their budget at any point in the term. Students can even use prepaid cards to pool funds within communal university households, either for general household items or to pay for utilities and other bills.
There are security benefits to using prepaid cards as well; whilst debit cards, credit cards and cash can be very tempting for thieves, a prepaid card – with limited spend and the full security of a Chip & PIN – offers a real safety net, especially as it is not linked to the student’s bank account.
Ajay Sethi, Retail Client Director, PrePay Solutions, comments:
“Providing students with a prepaid card will give parents the peace of mind of knowing that their children aren’t running up massive debts or dipping into their overdraft whilst at university. Prepaid cards are also a useful way for young people to learn about budgeting, since they can easily see exactly how much is being spent, as well as when and where. This way, students learn to keep a close eye on their finances, but parents don’t need to worry about their children running out of funds halfway through the year, since the card can be re-loaded with funds at any time.”