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."

With permission from Travelmole

David HT Mod wrote:

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."

That's very misleading at best - I know for certain that with the Fairfx card any money loaded on the card is ringfenced from creditors in the case of insolvency. So although it is not protected by the FSCS, you won't "lose all your money"

The Ryanair website now includes the ability to order your Ryanair Prepaid Cash Passport Mastercard. Go to the Ryanair website and from the home page click on Credit/Prepaid Cards tab and off you go !

All T&Cs included.

Regards Chris

Ryanair defends its new Cash Passport Card

Ryanair has hit back at criticism of its new Cash Passport card just launched in the UK.

It has released a statement confirming that all card holders are fully protected.

The new card allows all holders to avoid Ryanair's £6 administration fee every time they fly Ryanair.

It costs £6 to obtain, but the fee is reimbursed by Ryanair with a £6 flight voucher.

Ryanair refuted claims by the UK's Financial Services Compensation Scheme (FSCS) that passengers would lose their money if Mastercard's card issuer goes bust.

"In such an unlikely event, both Ryanair and Access Prepaid (a Mastercard subsidiary) confirmed that ALL monies loaded onto Ryanair Cash Passport cards are held in trust for Mastercard cardholders and are protected."

It also hit back at criticisms from rival card provider Fair FX.

Ryanair's Michael O'Leary said: "A true like for like comparison shows that the Ryanair Cash Passport card is much more competitive than the Fair FX card and Ryanair's current MasterCard pre-paid products for flights purchased on Ryanair.com."

With permission from Travelmole