In the gift card section I often see Visa and such that can be purchased with a set limit on them, I have been thinking of purchasing one as to not appear on my credit report. Or do they? Does any Doper have experience with them, can they be used for on line buying? When on-line check outs ask for the name on the card what do you put down since there is no name per say on a pre-paid. Do you have to sign your name when using one in a store? Can any one shed some light on this for me?
They’re a waste. Get a debit card and don’t pay the fees.
There are fees associated with such cards. Here, for instance, is the fee schedule for the pre-paid Visa card from Walmart. Three bucks when the card is issued, three bucks to add money to it, two bucks to get money from an ATM. Oh, and a three-dollar monthly maintenance fee. In my opinion, that’s expensive.
Since you’re looking for advice on financial management, I’ll move this to IMHO.
twickster, MPSIMS moderator
I agree with the previous posters that they are a waste. My coworkers gave me a pre-paid credit card from Meijer a few months ago as a gift. It had a $5 monthly maintenance fee, which was waived if you put $1,000 on it that month. I would not recommend it. I used the balance that my coworkers put on the card for me and then closed it.
As far as the rest of your questions, the FAQs link on the Meijer prepaid credit card website says that the card does not affect your credit because it is prepaid, but they do require your information. When I activated the card, it involved giving them my name (and I think SSN), at which point they mailed me a card with my name. You still have to sign for purchases. You can also use it online.
I love love love them. Well, I did when I was a teenager, anyway! Now I actually have a card in my name because I’m an adult.
My mom does this for us kids every Christmas. It’s great. I mostly use credit cards for online purchasing, so with these I have a set limit and if the card is compromised it won’t fuck up my credit or be a big hassle.
I use my name when checking out online. But I don’t have credit issues, so I can’t say anything from that side. But for convenience I think it’s awesome.
I buy those Visa gift cards once in awhile to send to my daughter. We think they’re great.
They aren’t refillable. You can use them to pay for any purchase online or at the register. You will need to register the card on their site, but that is for places that use your billing address to verify your card purchases. They only fees associated with the cards since this past Aug is the the activation fee, which is what you pay for the card. Unless you need a replacement card because one’s been lost.
They cannot be used at an ATM. They never expire.
See their site. Visa gift card FAQ
I use them for internet purchases, because they are totally anonymous and there is zero worry about somebody stealing my credit card info.
Financially, they are a rip-off…you pay huge fees (several dollars to buy the card, then it automatically loses value every month, so if you don’t use it within a year it is worth zero.And you can’t combine two cards…(example: you buy a $50 card , make a $40 purchase, you have $10 dollars left on that card. But if you want to make another purchase of $11, you can’t use those $10. You have to buy a new $50 card, pay the whole $11. You can’t pay by using $10 from the first card and $1 from the new one.So usually, when the card’s value drops down to, say, 8.53, I just throw it away.)
So for a $50 card, I waste maybe 15 or $20–almost 40%. For a $100 card, I waste just as much cash, but it’s “only” 20%.
But I look at it like insurance. I don’t mind wasting a few dozen bucks a year , for my peace of mind.
I’ve gotten these as gifts and they’re as useful as anything else. They’re nice because I can use them anywhere that takes that brand of card, and I can use them for whatever I want. But they are expensive and they don’t give the same level of purchase protection that a credit card or debit card provides. They’re intended to be given as one-time gifts, not as substitutes for regular credit or debit cards.
If you’re concerned about your credit, talk to someone at your bank or credit union who can give you more workable options.
You know you don’t have to use them online, right? A disposable credit card with a few dollars on it is still good for buying snacks or coffee or whatever when you go out.
I’ve received them several times as gifts and there was no monthly maintenance fee, then again they weren’t refillable.
However, why should someone pay extra for one??? I mean, I know there’s a fee to purchase them, but that fee is pure rip-off. I won’t buy them as gifts, despite nieces having asked for them (we send checks instead - they can cash the checks).
The times I’ve gotten them, I’ve been able to use them for online stuff though you do have to register them at the issuer’s website first.
Really, in my mind the only reason to get them for yourself is if you’re unbanked for whatever reason. And even then: do they provide the kind of protection that a “real” credit card does?
Oh: and another reason I don’t like them: if you’ve got an odd amount left over on the non-refillable variety, it can be very hard to spend them. I think that’s part of the gimmick the issuers count on to boost their profits - how many people have 4.38 left on one, and never find an opportunity to spend that, leaving the money in the issuer’s hands.
Fortunately, our grocery store lets you swipe a card and put a specific amount to be deducted even if the bill is higher, so we can spend that 4.38, and put the rest on another card.
But they can’t use the cash to buy stuff online, which is the main appeal of a prepaid credit card when you’re too young for a regular one.
Yeah, true, I suspect we didn’t think about that when the request was made a few years back. Though if they want to buy something that costs more than 30 dollars (our usual gift amount), it would (for most sites) be just as hard to make such a purchase.
At this age, they’re old enough and have their own bank accounts that it’s a moot point, fortunately.
I use them for backups when traveling overseas. If I lose them or they are stolen, I lost the value of the card and that’s it.
I got one as a gift, I think I got it down to under a dollar left on in before I abandoned it.
No one’s answering one of the questions. Of course they don’t affect your credit, as they aren’t credit. You just spend the money on the account–there’s no credit involved. I’m not sure why they call them pre-paid credit cards when they are really single-deposit, disposable debit cards. Maybe because they don’t include ATM use?
They’re called ‘credit cards’ because they use the credit card system. The debit card system is different.
Aside from the ‘safe to use online’ angle, they don’t send statements, so they can be used if you don’t want your partner/parents/stalker to know about your online gambling. Or your porn. Or that new gambling-porn hybrid that Google has under development.
You may or may not be asked to sign slips, depending on store policy. I don’t know if vendors are supposed to comply with the full credit card regs, but most stores don’t do that anyway. I suppose you could sign ‘A Gift For You’ or whatever is embossed on the card if you wanted to be a wiseass.
–
In a rare reversal of my usual estimates, I suspect that gambling is the most common use. Followed by misc. online stuff, THEN porn.
The initial fee is annoying but the anonymity is convenient as well as the security for online purchases.
The way I deal with the “leftover” balance curse is to use the remainder to buy an Amazon gift card in that exact amount. That way nothing is wasted.
Thanks for all the info, this link was very helpful. See I didn’t know fees were involved with this so I will have to look into it more.