Debit and credit cards are normally linked to bank accounts. You have to sign an agreement with the bank and open an account if you want to use a debit or a credit card. It is a handy payment instrument indeed as you can use it to pay for goods and services, make money transfers, withdraw cash, and so on.
A prepaid card, in its turn, is a special banking product that combines the properties of a bank card and a gift card. You can buy it at a shopping mall, load some money onto the card, use it for your own purposes or give it to somebody as a gift. Different companies offer plastic or virtual prepaid cards.
You don’t have to open a bank account nor sign any agreements with the bank to be able to use a prepaid card. Your passport data are not required either, as a rule.
Other defining characteristics of a prepaid card include the following ones:
- The card is anonymous: it does not carry the name of the holder.
- A prepaid card cannot be overdrawn in most cases. Some prepaid cards are reloadable while others are not.
- A limit can be set for a single payment. For example, you may be unable to pay more than 50 € in one go.
- Commissions are normally charged on purchases and there is a card maintenance fee. If you don’t use your prepaid card for too long, a commission may also be charged.
- Not all prepaid cards allow withdrawing cash from ATMs.
- As a rule, the card is not insured. If you lose it, you lose the money on it.
- If the validity term of the card expires before you spend all the money loaded onto it, you may not be compensated for the outstanding amount.
Anonymous prepaid cards are a handy instrument for travelers. Below we discuss the properties of a prepaid card called Paygoo Gift that is popular in Northern European countries. Please note that there are many more prepaid card brands that you can find in Europe.
Paygoo Gift: a prepaid card popular in Europe
You don’t have to go to the bank to obtain a prepaid card if you find yourself in Europe. The cards are on sale in regular stores and supermarkets. The card that we discuss below is based on MasterCard, which means that you can use it to make a payment anywhere in the world where the MasterCard system is functional. Besides, you can use it in Internet shops.
Paygoo Gift cards are popular in Norway, Sweden, and Finland. Each country has a website in the national language and each offers an interface in English.
Anybody above the age of 13 can buy a Paygoo Gift card in supermarket checkout lines. For example, in Finland, you can find the card at Kesko and R-Kioski. In Norway, you can find it at 7-Eleven, Meny, Kiwi, and other places. In Sweden, the card is on sale in Circle K.
Paygoo Gift comes in two variations: single-use or reloadable. You need to have a bank account in the country where you bought a reloadable Paygoo card to be able to use it. Travelers usually don’t have bank accounts in foreign countries so we are going to dwell on the standard Paygoo Gift card that becomes empty and useless once you have used it up.
A non-reloadable Paygoo Gift comes in two variations again. The new version is of white color and it has an NFC chip that makes contactless payments possible. The old version is of gray color and it does not have a chip. You have to bear the difference in mind because you can make only a contactless payment in some places such as the public transport, for example.
Financial aspects
Prices do not differ by the card type but they do differ by the country. A Paygoo Gift card costs 6.95 € in Finland, 39 NOK in Norway, and 39 SEK in Sweden. With the current exchange rates, the card costs about twice as much in Finland as it does in Norway and Sweden.
How much money can you put on a Paygoo Gift card? This depends on the country. In Norway, you can put between 200 NOK and 1500 NOK, in Sweden, between 200 SEK and 1500 SEK. Besides, you can buy a card with 500 NOK or SEK preloaded onto it. In Finland, you can put between 20 €and 150 € on a Paygoo Gift card.
You can load the card right at the supermarket where you bought it. You don’t have to supply your passport or any other documents.
Activating the card
However, you do need to have a European SIM card to activate your Paygoo Gift card. One thing you can do is visit the company’s website in the country and enter your telephone number to activate the card. Alternatively you can send an SMS to the number that you will find printed on the card. The SMS should look as follows: ‘ACTIVATE_space_card number’.
Your mobile operator may charge a fee for the message. When you use the card in an Internet shop, you enter ‘Paygoo Gift’ in the field where you would normally enter your name.
Limitations and commissions
You cannot withdraw cash from your Paygoo Gift card. Some other restrictions apply too. For instance, there is a limit for a single transaction. It is 50 € in Finland, 500 SEK in Sweden, and 500 NOK in Norway.
Commissions are charged on almost all operations. Beginning your third purchase, a commission is charged. After 6 months, a card maintenance fee is charged. If you don’t use your card for 12 months, an ‘idleness fee’ is charged until your card becomes empty.
If the validity term of the card has expired and you still have some money on it, you have six years to claim the outstanding balance. To get your money back, you have to contact the support service, supply your passport data, and file an application for refund. The money will be transferred to your bank account in Europe.
Before you decide to buy a Paygoo Gift card, we recommend that you log onto the company website and read all the service conditions carefully. There are slight differences depending on the country where you would like to buy the card. You will be well-advised to always exercise caution when using modern banking products.