I just want to know. Not big on having a regular plastic but a prepaid card would be helpful for making online payment.
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Prepaid Credit/Debit Card: Pros & Cons?
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Re: Prepaid Credit/Debit Card: Pros & Cons?
Why not just do your online payments out of your checking account? It's easy that way. Or, did you mean online purchases? I don't know about a debit card for that, I always use a credit card.Now run along and play, but don’t get into trouble.
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Re: Prepaid Credit/Debit Card: Pros & Cons?
I did not know that the concept of prepaid credit/debit cards existed. If it did I suspect that con would be going someplace to get a card and the time it takes to get it available for you to use.
Does any of the banks in the state do this now?
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Re: Prepaid Credit/Debit Card: Pros & Cons?
Virtually all banks and some credit unions offer this service. The card usually takes about a couple of weeks to get.
I have an American Savings Bank ATM/Debit card that functions like a credit card. The caveat about a debit card is that you have very little fraud protection unlike a credit card that has a lot of protection.
A prepaid card is pretty cool because some places only allow the use of credit cards or plastiic in general (try renting a hotel room or a car with cash).
If you fill a prepaid credit card with only $1,000 that's all it's good for. There is no credit balance to pay and rack up interest charges for late payments. Once it's tapped out, that's it. Great card for teenagers. I'm thinking of doing that for my 12-year old. By going online I can "refill" his prepaid credit card with his weekly allowance instead of having to break a $20 bill to give him his money. I really don't like the idea of having my kid walking around the mall with a wallet full of cash. At least with a credit card there is some recourse if it gets lost or stolen and you know kids...I thought I left my wallet in my backpack.Life is what you make of it...so please read the instructions carefully.
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Re: Prepaid Credit/Debit Card: Pros & Cons?
I don't know when or how pp credit cards came into play but I saw them advertised for people with poor credit histories who couldn't get a regular credit card. I've also seen them targeted at students with parents feeding the card like an allowance. Had they existed when my kids were still at home I would've opted for them to use the pp cc's instead of being additional card holders on my account. No problem tho' as they never abused their (my!) cards.
As long as a card can be used as a debit card it's automatically linked to one's checking account and is, in essence, "prepaid" by nature of the balance in that account. I think Bank of Hawaii called them "access cards". Don't know whether they still do.
CPB also has this type of card. It's called a "check card". It takes the place of writing checks while the amount is automatically deducted from the checking account. Even when used as a credit card (which is what I do for protection) the amount is still deducted from the checking account.
I'm not aware of a debit card that's not linked to another account within the bank but I'm also not watching for such a thing!
As for a pp cc, you might want to look into hidden charges since they won't be making any interest off of you!
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Re: Prepaid Credit/Debit Card: Pros & Cons?
[QUOTE=tutusue;184646]I'm not aware of a debit card that's not linked to another account within the bank but I'm also not watching for such a thing!
QUOTE]
You can link any check/debit card to a PP card simply by authorizing manual online payment via your routing/account number. You still need to manually authorize a payment to that card but essentially that's all there is to it.
I've seen these PP cards available at WalMart, Safeway and virtually all department stores. Heck even McDonalds offers PP cards for food purchases at a McDonalds that are rechargable.Life is what you make of it...so please read the instructions carefully.
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Re: Prepaid Credit/Debit Card: Pros & Cons?
You can link any check/debit card to a PP card simply by authorizing manual online payment via your routing/account number. You still need to manually authorize a payment to that card but essentially that's all there is to it.
I've seen these PP cards available at WalMart, Safeway and virtually all department stores. Heck even McDonalds offers PP cards for food purchases at a McDonalds that are rechargable.
The pp store cards don't count towards a credit rating. I think a pp Visa or MasterCard might. Not sure, tho'.
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Re: Prepaid Credit/Debit Card: Pros & Cons?
Because of the fees, prepaid cards are said to be an "expensive way to spend your own money". I do not see any advantage to them, unless you are giving them instead of a "gift card" (that can only be used at a certain store).Now run along and play, but don’t get into trouble.
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Re: Prepaid Credit/Debit Card: Pros & Cons?
Originally posted by Amati View PostBecause of the fees, prepaid cards are said to be an "expensive way to spend your own money". I do not see any advantage to them, unless you are giving them instead of a "gift card" (that can only be used at a certain store).
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Re: Prepaid Credit/Debit Card: Pros & Cons?
Originally posted by tutusue View PostBut can you get that check/debit card without having an account at that bank?
A PP credit card can be linked to anything that can have funds transferred from such as another credit card.Life is what you make of it...so please read the instructions carefully.
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Re: Prepaid Credit/Debit Card: Pros & Cons?
Originally posted by craigwatanabe View PostA prepaid card is pretty cool because some places only allow the use of credit cards or plastiic in general (try renting a hotel room or a car with cash).
The amount of the hold can vary, depending on the number of days you are renting the car or staying at a hotel. Every company is different. But from what I heard, a common method is to hold $10 per day. So if you're staying at a hotel for 10 nights, a $100 hold will be placed on your checking account if you use a debit card. If the balance on your account is $150, you will suddenly find that if you go to the ATM, you will only have $50 available.This post may contain an opinion that may conflict with your opinion. Do not take it personal. Polite discussion of difference of opinion is welcome.
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Re: Prepaid Credit/Debit Card: Pros & Cons?
Originally posted by tutusue View PostI don't know when or how pp credit cards came into play but I saw them advertised for people with poor credit histories who couldn't get a regular credit card. I've also seen them targeted at students with parents feeding the card like an allowance. Had they existed when my kids were still at home I would've opted for them to use the pp cc's instead of being additional card holders on my account. No problem tho' as they never abused their (my!) cards.
Originally posted by tutusue View PostAs for a pp cc, you might want to look into hidden charges since they won't be making any interest off of you!
Some people think of the fees as being hidden because they are not immediately revealed at the point-of-purchase (like the ATM fees that are assessed whenever you carry out a transaction from a machine not owned by your bank). But once again, this is a good opportunity to teach your children to look carefully over any agreement before they sign and to get into the habit of examining their monthly statements. Hopefully, we as adults, are already doing this. If not, we should!This post may contain an opinion that may conflict with your opinion. Do not take it personal. Polite discussion of difference of opinion is welcome.
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Re: Prepaid Credit/Debit Card: Pros & Cons?
Originally posted by Frankie's Market View Post[...]
Strictly speaking, debit card "fees" are not hidden. When you first sign up for a debit card, the fees are disclosed in the written agreement. When you do rack up debit card fees, they are always shown on your monthly activity statement. [...]Last edited by tutusue; February 16, 2008, 02:27 PM.
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