Endorsed Cards

A very common question we get here at the credit and debit card watchdog is why can your debit card not be used on the Internet? The answer is actually pretty simple and there are many “work arounds” to this issue.

Basically, a debit card is a card that takes money directly from your bank account when you use it (In a store or online or at an ATM). Debit card fees are actually much higher than even the highest credit card fees. Despite the widespread misconception, debit cards are actually only accepted at a little over 1% of stores on the Internet.

The confusion comes from the widespread adoption of the name “Debit Card”over in the US. As a matter of fact, what they mean is a “prepaid credit card”. A prepaid credit card works SIMILAR to a debit card except it is accepted everywhere a credit card is. The store on the Internet does not know that it is not a credit card.

So when you hear someone saying that their debit card is not accepted, they are talking about their normal ATM card!

If you want your card to work online and you don’t want a credit card, you need a prepaid mastercard or prepaid visa card. We recommend either the Cashplus Prepaid Card, The Virgin Prepaid Card or the Tuxedo Prepaid Card. You can see how they were voted here.

A prepaid card is ideal for those of you who want to buy something online where credit cards are accepted but don’t want to apply for a credit card or risk going into credit card debt. Prepaid cards only allow you to spend what you have on them. Just like a mobile phone.