When you first open up a debit card account, you might be given a temporary digital card which has your name and either the Visa or Mastercard logo. Inline with the Anti-Money Laundering laws in Australia, you’ll have to provide your personal information.

Unlike some other countries, Australia has strict laws and regulations around anti-money laundering and counter-terrorism financing (AML/CTF). These laws require financial institutions to verify the identity of their customers and report any suspicious transactions. Our AML and CTF laws help protect the Australian economy from being exploited by criminals. They use money laundering and terrorism financing to hide the origin and destination of the proceeds of crime. What this means for you is that any financial product you get from either a bank or a licensed provider will have your name on it. It will all be linked to your account.

So, “what about those prepaid cards I see at supermarkets and service stations? Aren’t they anonymous? The short answer is: not exactly. While these cards may not have your name printed directly on them, they are still subject to the AML/CTF regulations.

For example, you will need to provide your personal details when you buy or activate the card, or when you reload it with funds. You may also have limits on how much you can spend or withdraw with the card, and some of them may not work online or overseas.

Recently, I went into Australia Post to get a reloadable card for online shopping. When I got to the counter I had to provide my drivers licence and my phone number. When I activated the card I also had to provide an email address. These small actions help to fight AML and CTF.

Overseas anonymous debit cards

There are some debit cards issued by banks in South American countries that are anonymous, where the regulations are more relaxed. They look exactly like normal debit cards, but they don’t have the user’s name on them. They can be used with any name or address, and they are not linked to any personal or financial information. These cards are very anonymous, but they also have some risks. Plus, they’re not available in Australia.

The bottom line

Anonymous debit cards are not a realistic option in Australia. If you want to pay with plastic, you’ll have to use a regular debit card that has your name on it and follows the law. If you want to keep your identity private, you’ll have to stick to the old fashioned way of paying in cash.