News & Views - Savantor

Prepaid v Credit/Debit

Tuesday, 31 July 2012

The popularity of prepaid cards is currently soaring, with many people turning to them in specific circumstances such as holidays instead of more traditional credit and debit cards.  As we enter the main UK holiday season a couple of surveys highlight the issues involved in using cards abroad and the apparent confusion the UK public have on whether to use prepaid cards abroad.  The Post Office is warning holidaymakers about the charges for using their credit cards abroad; which they say could see people hit with £135 million in unnecessary fees.  Their survey showed that last summer,

·         49% of holidaymakers used their credit card abroad, spending on average £463 each.

·         Men (56%) are more likely than women (42%) to splash out on plastic while on holiday, spending £494 compared to £428 spent by women.

·         24% are unaware of the amount their credit card provider charges for overseas transactions.

Older holidaymakers tend to be more spending savvy with those over 55 incurring an average fee of £5, compared to £23 racked up by 18-34 year olds.  Holidaymakers' biggest spend was on nights out (34%), closely followed by visiting attractions (33%) and shopping in duty free (32%). 14% of holidaymakers used their credit card because they ran out of money.

This survey coincides with another by Travelex focusing on the use of prepaid cards abroad.  The findings revealed that 77% of respondents taking a holiday abroad this summer will use a credit or debit card to fund purchases or withdraw cash – while 48% said they had deliberately chosen not to take a prepaid card after being left confused about which one to choose. When questioned, 41% cited that choosing a prepaid card was “extremely difficult” while 68% revealed they couldn’t work out the best value card. In the study, not being able to understand the charges, or how to compare prepaid cards, were cited as the most common reasons for the confusion among holidaymakers. Interestingly 25% of holidaymakers don’t realise they are incurring fees and charges using credit and debit cards abroad.  There seems to be a clear case for a uniform method of displaying prepaid card information to make it easier for consumers to choose the right card.

Savantor Services

Savantor Services

Savantor services are tailored to Client needs based on our core service areas

Specialist Resourcing Payments Strategy Platform Transition Operational Efficiency
Savantor Services

Job Opportunities

Consulting and contracting roles in the payments, mobile and banking arena within the UK and across Europe

View more
Savantor Services

Savantor Views

Find out more from our Savantor brochures, MarketEye back copies and Industry opinion

Collateral Market Eye News & Views Sign Up to receive MarketEye

Client Quotes

Payments Workshop Material

"Savantor helped ACI build a payments onboarding workshop for new technical staff in ACI EMEA. Their extensive experience took our outline and built a great starting presentation of industry facts that we have now customised further into a half day session that is used for all new joiners. Our Americas and APAC regions have also taken the material and customised it for their regions. A great job by Savantor has meant new joiners to ACI hit the ground running."

Richard Sanders, Principal Solution Consultant - ACI - Worldwide EMEA

Commercial Card Migration

"Execution at its best. We're delighted that this project has been truly outstanding and received an award from 'The Banker'. Savantor provided crucial expertise that helped us keep all our promises in terms of delivery. The scheduling, planning and control regime throughout was excellent."

Chris Mason, Director - Commercial Cards EMEA - Citi - UK

New Payments Initiative

"In moving our new initiative into reality, we required specialist payments knowledge and forward thinking in the retail sector. Savantor supplied this and provided very effective guidance throughout. We enjoyed working with them."

Sophie High, Head of Innovation Delivery - Cancer Research UK

Acquiring market insight and strategy review

"Savantor brought an independent perspective and valuable insight that enabled Rabobank to ratify options for delivery and future growth and make informed business decisions in support of our target business model. Having used Savantor on a number of strategic projects, we have no hesitation in recommending their services to others."

Evert R Fekkes, SVP Payment & Savings Services - Rabobank - Nederland

Moneris Solutions

"Savantor did an outstanding job of the review and I received nothing but positive feedback on the interaction with our management team."

Jeff Guthri, COO - Moneris Solutions - Canada

Acquirer Transformation

"We needed a programme manager for a complex transformation who also brought a broad understanding to help stakeholders through the change. We have been delighted with the delivery and outcomes from this engagement with Savantor."

Michael Liquornik, Executive Vice President - Neovia Financial - UK

Card Migration

"I was impressed by the speed with which the Savantor team were able to start delivering and as a team they have made a significant contribution to the success of the Programme."

Bjorn Niels, Programme Director - ABN AMRO Bank - The Netherland

EMV Migration Planning

"It was a strategic imperative for the bank to be EMV compliant for our payment cards and the experience that Savantor brought to the company has proved to be invaluable."

Eddie Sweeney, Chief Technology Officer - AIB Bank - Ireland

Clients - Request Support

Send us a support request and one of our specialists will be in contact to assist you.

Consultants – Upload your CV

Register your CV with us and gain access to a range of job opportunities through our online job search portal.