Secure payments with prepaid cards: benefits and security features

Contents:

• Why are prepaid cards considered particularly secure?

• What risks are there despite using a prepaid card?

• What security features do Swiss Bankers’ prepaid cards offer?

• How to use your prepaid card as securely as possible

• What happens if your card is lost or misused?

• Conclusion: Pay securely and with peace of mind using prepaid cards

Why are prepaid cards considered particularly secure?

Imagine you’ve topped up your prepaid card with 300 francs and are using it for online purchases. What happens if someone steals your card details? Fraudsters might try to spend the balance on the card. However, there is no additional credit limit for them to draw on. This is one of the biggest security advantages of prepaid cards. 

Prepaid cards offer further advantages:

• Control your spending: Whether it’s for your next online purchase or your holiday – you top up the amount you need and keep track of your budget.

• Keep your bank account separate: The prepaid card does not directly access your bank balance when you make a payment. This means you don’t have to use your usual bank card for purchases.

What risks are there despite using a prepaid card?

You spot a great deal in an online shop, add the product to your basket and pay with your prepaid card. It’s only later that you realise: the shop was a scam. Your order never arrives and your card details may have fallen into the wrong hands.

However, fraudsters also try to obtain confidential information via fake emails, text messages or phone calls. You can find out how to spot such attempts in our articles “Spotting phishing: Fake emails sent in the name of Swiss Bankers” and “Smishing: How to protect yourself from fraudulent text messages”.

There are risks in everyday life too. If your card is stolen or lost, under certain circumstances strangers may be able to make small contactless payments without having to enter your PIN.

What does this mean for you? A prepaid card can limit potential financial loss, but it does not automatically protect you from fraud. That is why it is important to be aware of typical scams and to remain vigilant when making payments.

What security features do Swiss Bankers prepaid cards offer?

Do you mainly use your prepaid card whilst on holiday, or do you only use it occasionally to make online payments? If so, you don’t need to have all payment functions activated at all times. In the Swiss Bankers app, you can decide for yourself where and how your card may be used.

These features offer additional protection:

• Block and unblock your card: Temporarily block your card when you don’t need it.
• Control online payments: Deactivate online purchases and reactivate them as and when required.
• Use geoblocking: Block regions where you do not wish to use your card.
• Disable contactless payments: Switch off this function if you prefer to pay using your PIN.
• Enable push notifications: Find out straight away if your card has been used.

There’s also extra protection for online shopping: Mastercard Identity Check. For purchases covered by this protection, you’ll need to confirm your payment in the Swiss Bankers app. This makes it harder for fraudsters to make purchases using only stolen card details.

It’s worth taking a look at your security settings: you may have features enabled that you don’t actually need in your day-to-day life.

How to use your prepaid card as safely as possible

Even when making payments, there are steps you can take to protect your prepaid card from unauthorised use. Often, just a few simple precautions are enough.

These three tips will help you do just that:

• Check online shops carefully: Spotted a particularly cheap offer? Take a closer look at the retailer before entering your card details. Missing contact details, suspiciously low prices or unusual payment requests can be warning signs.

• Keep your PIN and security codes secret: Never disclose your PIN or verification codes – neither over the phone nor via text message or email.

• Keep an eye on your card: Where possible, don’t let your card out of your sight when paying. Also, make sure nobody can watch you enter your PIN.

What happens if your card is lost or misused?

Your card has suddenly gone missing, or you’ve spotted a payment you can’t account for. This is frustrating, but it doesn’t automatically mean that your entire balance is lost. The key is to act quickly and block your card in the Swiss Bankers app.

You should also be aware of the following:

• Unrecognised payments: Report any suspicious transactions immediately. You can have these checked by Swiss Bankers using the dispute form.

• Replacement card: If your card has been lost or stolen, you can request a replacement in Switzerland and Liechtenstein using the ‘Replace card’ function in the Swiss Bankers app. Abroad, please contact customer services. For Travel and Prime cards, worldwide delivery of a replacement card by courier is free of charge.

• Card balance: Any remaining balance on your card will be transferred to the replacement card. Whether amounts that have already been fraudulently debited will be refunded depends on the individual case and the applicable due diligence requirements.

Good to know: Make sure you keep your card provider’s contact details somewhere other than on your smartphone. This way, you can request assistance in an emergency, even if you no longer have access to the app.

Conclusion: Pay securely and with peace of mind using prepaid cards

Prepaid cards are a practical way to stay in control when making payments and to limit financial risks. By making use of the built-in security features and staying vigilant when paying, you can further reduce the risk of card fraud. This means you’ll be well prepared for everyday life, online shopping and when travelling.