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
Vegas’s Billion-Dollar Secrets – What They Don’t Want Tourists to Know
Visit Florida’s New CEO Bryan Griffin Shares His Vision for State Tourism with Graham
Chicago’s Tourism Renaissance: Graham Interviews Kristin Reynolds of Choose Chicago
Graham Talks with Cassandra McCauley of MMGY NextFactor About the Latest Industry Research
Destination International’s Andreas Weissenborn: Research, Advocacy, and Destination Impact
Graham and Don Welsh Discuss the Success of Destinations International’s Annual Conference
Graham and CEO Andre Kiwitz on Ventura Travel’s UK Move and Recruitment for the Role
Brett Laiken and Graham Discuss Florida’s Tourism Momentum and Global Appeal
Graham and Elliot Ferguson on Positioning DC as a Cultural and Inclusive Global Destination
Graham Talks to Fraser Last About His England-to-Ireland Trek for Mental Health Awareness
Kathy Nelson Tells Graham About the Honour of Hosting the World Cup and Kansas City’s Future
Graham McKenzie on Sir Richie Richardson’s Dual Passion for Golf and His Homeland, Antigua
ADS PRO 
Phocuswright reveals the world's largest travel markets in volume in 2025
Higher departure tax and visa cost, e-arrival card: Japan unleashes the fiscal weapon against tourists
Cyclone in Sri Lanka had limited effect on tourism in contrary to media reports
Singapore to forbid entry to undesirable travelers with new no-boarding directive
Euromonitor International unveils world’s top 100 city destinations for 2025