Question on pre-paid VISA

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LessIsMore
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Question on pre-paid VISA

Postby LessIsMore » Sun Feb 22, 2015 10:53 pm

Recently, I bought a new car battery from my local NAPA store. And as an incentive, they said that batteries bought during the promotion would earn the buyer a $10 prepaid VISA card. I know, whoop-de-do (grin). Anyway, I have one coming in the mail.

But a thought occurred to me. I've never had a pre-paid card before. But I assume such cards make no reports to credit reporting agencies - that they either pay a bill if there's enough money loaded on the card or they don't pay a bill if it exceeds the load. Is this a correct assumption?

Occasionally, I might make a charge to an entity that has "recurring" charges. And experience has taught me that some of these entities will ignore requests to stop the charges. Twice, I've had to report cards as "compromised" - and pay the $5 fee to get a new card with a new number issued - to stop the entity in its tracks. Hint - charities are not above this practice.

Anyway, it occurred to me that if I loaded a prepaid card with just enough money to cover the charges I was willing to allow ... and let future charges just bounce off the card ... that I'd accomplish the same thing (without paying the $5 fee). Does anyone see any danger in doing this?
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lobbythis
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Postby lobbythis » Sun Feb 22, 2015 10:58 pm

Prepaid card is simply money loaded onto a card. It has absolutely nothing to do with credit. It is not like a secured credit card.

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Postby LessIsMore » Sun Feb 22, 2015 11:03 pm

That's what I thought. I just wanted to make sure my assumptions were correct. Thanks.
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Postby Vattené » Mon Feb 23, 2015 7:32 pm

That sounds like a good idea to me. Of course I wouldn't advocate trying to stiff someone with it, but if you're interested in something but can't trust the seller it sounds like a good way to prevent them from passing unauthorized charges through down the road.
-Vattené
FICO-8:
EX - 809 (11/16) | TU - 803 (11/16)
Primary Cards:
American Express EveryDay - $20,000 (10/14)
Discover it - $23,000 (2/14)
AU on Barclay Sallie Mae - $10,000 (8/15)
plus several store accounts of varying usefulness now

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Postby whit » Mon Feb 23, 2015 8:53 pm

I actually have a prepaid card I get for free with my chase account and i love it

I don't carry a debit card (don't have one actually) and transfer over any money I need to withdrawal onto my prepaid card or, if I'm paying by debit a transaction (some restaurants like mama in sf doesn't take credit only cash or debit) I can transfer over the exact amount

Otherwise generally there's a penny or two in there.

It's safer that way.

I don't do savings account with chase or any b&m for that matter because they give you like .01-.1?? APY

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Postby lobbythis » Mon Feb 23, 2015 10:39 pm

A handful of companies allow you create a VCC or virtual credit card. BoA is one.

Number lasts for 24 hours and then it's gone. Would accomplish the same as a prepaid for safety reasons.

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Postby whit » Mon Feb 23, 2015 10:50 pm

lobbythis wrote:A handful of companies allow you create a VCC or virtual credit card. BoA is one.

Number lasts for 24 hours and then it's gone. Would accomplish the same as a prepaid for safety reasons.



I know, citi has this and I've tried it before but it's a bit cumbersome in how it opens a new pop up window and than something else..I forget..

Versus this allows me to easily transfer from one account to another in a sec..and I have the card physically with me. I use the prepaid to do withdrawals at ATM more than the visa debit

For credit cards, because I check often, and I'm confident that the cc companies will not hold me liable for any charges I don't make..I'm good with that

If I was afraid of a company trying to do reoccurring charges, I would try and find alternatives before succumbing to giving them my business, and I guess than the virtual numbers can come in handy except, like verified by visa (also annoying imho) I prefer to just pay by debit prepaid rather than going through all that sham. Actually I did do that with a company that required a weird checkout with either MasterCard or verify by visa--I didn't want to do verified by visa..correction I tried, but it was annoying, didn't work? So I whipped out the MasterCard attached to my capital 360 and transferred the thirty something dollars that was the total (which is nothing from the savings anyways, interest wise, less than what I'm paid) and used the card..so in the end there was nothing in that checking after the transaction

If they tried to pull more they couldnt have

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Postby LessIsMore » Mon Feb 23, 2015 11:44 pm

Vattené wrote:That sounds like a good idea to me. Of course I wouldn't advocate trying to stiff someone with it, but if you're interested in something but can't trust the seller it sounds like a good way to prevent them from passing unauthorized charges through down the road.


The first time I got screwed around by a recurring charge was years ago ... Vonage. But it wasn't just the recurring charge. I'd been with them for 18 months, satisfying a 12-month initial contract. I informed them I was switching to 8x8 at the end of the billing period. But at the same time (sneaky me), I went online and changed the expiration date of my card on record. They tried to charge me beyond the end of the billing period - but the charge was declined. Later, they tried to charge me for not returning the equipment - equipment I'd actually "bought" earlier to avoid monthly fees. They kept asking me to update my card info. I kept saying no. And then I told them I would report them to the FCC because their promised e911 service was non-functional (at least 2 state attorneys general took them to court over that). After a few days of silence, I finally got an email from them - saying my account was closed on the day I'd requested it closed - and that they considered my account paid in full.

The 2nd time, I actually did get screwed out of one month of charges - by PBS. I was a "sustaining" member and decided to drop my support for them. I informed them that effective the end of the next month, I wanted my recurring charges to stop - that I'd decided, instead, to support a local listener-supported classical music FM station. But, they charged me once after that date. I reported the card as compromised and got a new one with a new number. And the very NEXT month, they contacted me to tell my my card was declined - that I needed to update my card info. I reminded them of my decision to stop support for PBS (and "when" I decided to stop support) and told them I'd not be updating anything. They never contacted me after that.

I've had other recurring-charge vendors who honored my requests to withdraw support. So, not all recurring-charge vendors are bad - and I don't distrust all recurring-charge vendors. I'm still a sustaining member of the classical station (AllClassical.org) and their charges are recurring. But while I don't distrust all such vendors, well - it's like the old Islamic proverb - "Trust in Allah but tie up your camel." If I ever decide to drop my support for another entity, and if I still have that prepaid card, I'll make sure I switch their charges over to it before I leave - and to only load it with what I "want" to donate.
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Postby Vattené » Tue Feb 24, 2015 3:17 pm

Absolutely, it isn't being cynical/paranoid to acknowledge that some companies will try to pull stunts like that. Some people just don't find it worthwhile to chase after a few dollars when it's made too much of a hassle.

It sounds like you didn't pursue it, but did you ever consider disputing that last unauthorized charge passed through by PBS?
-Vattené
FICO-8:
EX - 809 (11/16) | TU - 803 (11/16)
Primary Cards:
American Express EveryDay - $20,000 (10/14)
Discover it - $23,000 (2/14)
AU on Barclay Sallie Mae - $10,000 (8/15)
plus several store accounts of varying usefulness now

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Postby flan » Tue Feb 24, 2015 10:57 pm

LessIsMore wrote:Occasionally, I might make a charge to an entity that has "recurring" charges. And experience has taught me that some of these entities will ignore requests to stop the charges. Twice, I've had to report cards as "compromised" - and pay the $5 fee to get a new card with a new number issued - to stop the entity in its tracks. Hint - charities are not above this practice.

Anyway, it occurred to me that if I loaded a prepaid card with just enough money to cover the charges I was willing to allow ... and let future charges just bounce off the card ... that I'd accomplish the same thing (without paying the $5 fee). Does anyone see any danger in doing this?


The number space of prepaid cards is distinct, and the merchant can detect it and disallow it.

Also, if your bank charges you to replace a card due to fraud, get a new bank....



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