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Can Prepaid Cards Expire?

Fintech and banking

May 30, 2022

4 min. read

James Irwin

Author

Most payment cards and credit cards have an expiration date, and prepaid cards are no exception. Here’s what you should know if you have a prepaid card.

So, can prepaid cards expire?

Yes, prepaid cards can expire. The expiration date is typically on the front of the card, below the 16-digit card number, or on the back of the card. If your prepaid card is tied to an account with a balance, you won’t lose the money in your account, but will need to order a replacement card.

Keep reading for a complete guide to why prepaid cards expire, as well as what to do if your prepaid card has expired.

Why do prepaid cards expire?

Prepaid cards expire so that card issuers can keep their clients up to date. Prepaid card expiration also allows customers to have a more secure experience.

Here are the three main reasons that prepaid cards use expiration dates.

Reason 1: Cardholder Verification

When you make a purchase online or over the phone, you will often be asked to enter your card’s expiration date.

Since expiration dates are rarely stored anywhere except on the actual card itself, these dates act as an additional piece of data to ensure the proper cardholder is making the purchase.

Reason 2: Fixing Wear and Tear

Payment cards have features such as EMV chips and magnetic stripes that wear down after use.

Plus, card plastic itself may become damaged over time. By having users replace their card after a certain amount of time, card issuers can ensure that all cards in circulation are in good condition.

Reason 3: Keeping Customers Up to Date

By having users replace their card on a regular basis, card issuers can give users a chance to re-evaluate the terms and services of their card.

They can also send out cards with updated logos and designs and make other changes to their card’s features on a regular basis.

What Happens When A Prepaid Card Expires?

If your card expires, you’ll need to replace it. Here’s what to expect when your card expires:

Point 1: You’ll Receive a Notification

Generally, card companies will send you a notice 30-60 days before your card expires. However, you can request a new card sooner than the expiration date if you’d like.

Point 2: Your Card Will Be Frozen

After the expiration date, if you have failed to renew your card, you will not be able to access funds via the card. However, you may be able to transfer funds via a web account (if your account offers that feature).

You will be able to begin spending money using your prepaid card as soon as you receive a new one.

Point 3: Your Funds May or May Not Expire

If your prepaid card balance is tied to an account, your funds will generally remain available even after your card is frozen.

Prepaid cards are not the same as gift cards, which may eliminate your balance after a period of inactivity. Your card’s terms and conditions will explain this in more detail.

What Should You Do If Your Prepaid Card Expires?

If your prepaid card expires, you can simply contact the company that issues your card and ask them to send a new card to you. Here’s how to do it:

Step 1: Contact Your Card Issuer

Contact your card issuer and ask for a replacement card. In order to avoid phishing attempts, you should refer to the contact details and phone number that originally came with your card.

Step 2: Confirm Your Card Plan

Before you agree to a new replacement card, consider the terms of your card plan.

Generally, card companies cannot forcibly change the terms of service, but there may be better alternatives—such as better fees or reward plans—for you to take advantage of when you order a new card.

Instead of asking for a new card after the expiration date, you can choose to close your account. In this case, the card issuer will typically send you a check with your account balance.

Step 3: Activate Your New Card

Your card will soon be delivered by mail. You will then have to sign and activate the card, either by phone or online. Be sure to cut up and throw away your old prepaid card.

Step 4: Update Online Payment Information

If you have automatically scheduled any payments online (such as electricity bills and phone bills), you will need to update those online accounts to reflect the expiry date of your new card.

If your web browser stores your card information, be sure to update that data as well.

Payset’s Upcoming Debit Card Solution

Payset will soon offer debit cards with many features, from the ability to fund your balance with a variety of local currencies to plans targeted at business and enterprise users.

Signing up is simple: just click on the “Get Started” button below.

A UK multi-currency account can streamline how you manage your finances. Whether for business or personal use, a multi-currency account provides you with added freedom and flexibility and removes barriers to payments and transfer methods.

Here is everything you need to know about UK multi-currency accounts.

A Payset UK multi-currency account is a single account with which you can hold, send, and receive funds in up to 38 currencies. This allows business or personal account holders to save endless time and money on foreign exchange, and money transfers, which from a traditional bank account would be far more expensive and slow.

From your personal UK-based IBAN account, you can transfer money to bank accounts around the world as well as send and receive free and instant transfers to and from other Payset clients. You can send funds using a diverse network of payment networks, including SWIFT, SEPA, Target2, Faster Payments, CHAPS, and more.

When you exchange funds from one currency to another, there are no margins added to our exchange rates and the fees are clearly displayed before you click send. If you, for example, work with multiple currencies, make purchases in other countries, travel frequently, invest in foreign currencies, pay staff in other countries, or receive payments in other currencies, a multi-currency account can save you time, money, and work compared to a traditional bank account.

There are lots of banking institutions and financial services that will aid you in opening a multi-currency account. Often they can allow you to convert and transfer a considerable number of currencies.

Before you open a UK multi-currency account with any platform or service, make sure you have explored all of the different options available to you and have found the best type of account to suit your financial needs.

How Does a UK Multi-Currency Account Work?

A UK multi-currency account works in the same way as a standard bank account or electronic wallet. Although the services provided will change depending on where you choose to open your account and who you choose to open the account with, all multi-currency accounts should allow you to:

Withdraw money

Send and receive payments in multiple currencies internationally

Access your funds for electronic transfers

Earn interest on your account total

In the same way that fees can occur with a standard bank account you may run into additional charges with a UK multi-currency account.

You could be charged for a number of actions including; making withdrawals, account opening and closure fees, transfer fees, and more.

The frequency or amount of these charges will often vary and if you ask your banking agency they will usually be able to tell you exactly how much you will be charged and which services you will be charged for before you open your account.

Alternative Options to Consider Before Opening a UK Multi-Currency Account

There are many alternatives to opening a UK multi-currency account. For example, there are also money transfer services and online electronic wallets such as Payset that allow you to send your money in over 34 currencies without the need for a UK multi-currency account. You can start sending money across the globe or in person today using your existing bank account.

Frequently asked questions

What is a UK multi-currency account/IBAN?

Are there limits to the amount of money I can send and receive with a UK multi currency account?

Which currencies can I send and receive in my UK multi currency account?

How do I add money to my UK multi currency account?

Types of UK Multi-Currency Accounts

Multi-currency IBAN accounts
Personal multi-currency accounts
Multi-currency accounts for business
Multi-currency cash passports
Multi-currency wallets

Information contained in this publication is provided for general education and information purposes only and should not be construed as legal, tax, investment or other professional advice or recommendation, or an offer of, or solicitation for, any transactions or any other actions (or refraining therefrom); This material has been prepared without taking into account any particular recipient’s financial objectives or situation. We make no warranty, guarantee or representation, whether express or implied, as to the completeness or accuracy of the information contained herein or fitness thereof for a particular purpose; Use of images and symbols is made for illustrative purposes only and does not constitute a recommendation or advice to take or refraining from any action; Use of brand logos does not necessarily imply a contractual relationship between us and the entities owning the logos, nor does it represent an endorsement of any such entity by Pay Set Limited, or vice versa; Market information is made available to you only as a service, and we do not endorse or approve it; Any reference to past performance, predicted returns, or likelihood performance scenarios may not reflect actual future performance and certainly do not guarantee future outcomes.