Consumers warned of danger of pre-paid plastic
Consumers using pre-paid cards, including Ryanair's new own-brand MasterCard, have been warned that they are not protected by the financial compensation scheme is the card provider goes bust.
The warning comes from the Financial Services Compensation Scheme (FSCS), which is concerned that consumers using the cards could be unaware that they are not covered.
Ryanair announced last week that it was launching its own MasterCard, which will be the only way for customers to avoid paying an administration fee when they book flights.
Holidaymakers also use pre-paid cards as an alternative to credit cards and travellers cheques overseas as they can load them with the amount of local currency they want, making it easier for them to budget.
FSCS chief executive Mark Neale told The Times: “Those people who already have a card, or are considering getting one, should be aware that they are not covered by the FSCS.
"This means that if the provider goes bust then cardholders will lose all of the money on their card and will not be eligible for protection.”
By Linsey McNeill
Linsey McNeill
Editor Linsey McNeill has been writing about travel for more than three decades. Bylines include The Times, Telegraph, Observer, Guardian and Which? plus the South China Morning Post. She also shares insider tips on thetraveljournalist.co.uk
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