Best prepaid credit card

[tool]

I’m considering getting a prepaid credit card for a little bit of travel, hotels, rental cars, some online purchases etc.

Something that I will load a couple thousand dollars at a time onto to use for these type of things but I don’t want another conventional credit card right now.


Anybody using these with success?

[graybeard]

Yes I do....

I buy mine at the customer service (not at the till) at the Superstore because no A-hole has access to scan them. They are usually RBC or MC.

I use them for exactly what you are doing, especially purchasing fuel or liquor.... For travel I will pick up 2 or 3 prepaid cards.

So far I am happy with them.

[tool]

Ok good to know.

I was thinking more along the lines of ones that you refill. Kind of like a chequing account but with visa or MC abilities.

Some of these will also pay YOU interest on your cash balance and rewards on purchases.

Something I’d maybe load $5,000 at a time on.

[pikergolf]

I use an ATB mastercard for online purchases. I put money on it just before a purchase, that way even if a place is hacked my card only carries a tiny balance.

[EZM]

I never understood prepaid credit cards .... your conventional credit card offers any and all the protection from being scammed or hacked any person will ever need. They are also easy to deal with when this happens and you are never out a penny.

A pre-paid, on the other hand is already loaded and I'm not sure how you could stop someone from using your already pre paid money (but maybe it works the same and you do get protection? I don't know). So even losing " a small amount limited to what's left on the card" is still more than ZERO versus a conventional card as you are not liable for purchases that were unauthorized (like scams, hacks, etc..)

Clearly there are some additional advantages to conventional cards like cash back, points, air miles, etc.. as well.

Some prepaid cards also add fees and surcharges on purchases. A fractional percentage most people don't realize they are paying (as "cash back and air miles rewards cards deduct these fractional charges from the vendor and pay you through these vendor fees - this is not something pre-paid cards do.

And if you have money to pre-load them, then I assume you have money not to carry a balance either ...... so I'm at a loss as to why this is a good option as you are not taking on debt and interest if you pay them down right away.

Also is you load a pre-paid with $2000, spend a hundred buck and need to cancel/refund/freeze the card due to some scam the $2000 is out of your pocket and I bet it's going to take some real work to get your money refunded (and time on the phone). A conventional card, in this case, gets reversed in minutes and none of your money is tied up in a painful tug of war on the phone with the credit card company. Minutes, and you are resolved.

I see no advantage to them whatsoever and only downside. Maybe I missed something?

[bucksnbears]

EZM. with a prepared card, you can't get caught "overspending " what you can't afford.

[Pathfinder76]

Originally Posted by pikergolf

I use an ATB mastercard for online purchases. I put money on it just before a purchase, that way even if a place is hacked my card only carries a tiny balance.

This makes no sense.

[pikergolf]

Originally Posted by Pathfinder76

This makes no sense.

I should have included the word pre paid I guess, it is a pretty paid card.

[Pathfinder76]

A better idea is to let thieves steal the cc companies money not yours.

[Smokinyotes]

I don’t understand what the purpose of a prepaid credit card is. If you are paying for it upfront you might as well use cash or your debit card. What I like about using my credit card is I get free money for over a month until the balance is due.

[Au revoir, Gopher]

Originally Posted by bucksnbears

EZM. with a prepared card, you can't get caught "overspending " what you can't afford.

Anyone who needs their credit card to do that for them needs to develop some "won't power".

ARG

[JB_AOL]

Why not set up a visa debit card to a separate account.
Reusable/all the safety of "visa", and Gives u your "limit".

[Pathfinder76]

Originally Posted by JB_AOL

Why not set up a visa debit card to a separate account.
Reusable/all the safety of "visa", and Gives u your "limit".

And thieves are still stealing your money.

The only time you should be using a pre paid CC is when you can not qualify for a standard one

[pikergolf]

Originally Posted by Pathfinder76

A better idea is to let thieves steal the cc companies money not yours.

Have been through it twice, pass. As I said I only put money on it seconds before I make a purchase otherwise I hold a 10 dollar balance.

[HuyFishin]

I can't wrap my head around prepaid.

I buy everything on either my amex or visa.

Trip interruption insurance, flight cancellation insurance, lost and stolen bag insurance,rental car insurance, hotel theft insurance, out of country medical emergency insurance, travel accident insurance.

especially when travelling to places with high crime rates. Why not take advantage of all the perks? I am not sure if prepaid cards have the benefits.

[JB_AOL]

Originally Posted by Pathfinder76

And thieves are still stealing your money.

The only time you should be using a pre paid CC is when you can not qualify for a standard one

How is that different than a prepaid card? Any card is skimable. Difference is, a visa debit card has the same protection as a visa cc.ie, you get your money back.

[JB_AOL]

Originally Posted by pikergolf

Have been through it twice, pass. As I said I only put money on it seconds before I make a purchase otherwise I hold a 10 dollar balance.

So.. what do u do if your bank or the pp cc site is down? Just sit at the gas station waiting til it comes back online?

Seems like alot of headaches for such a rare occurrence

[HuyFishin]

https://www.simplii.com/en/bank-acco...-chequing.html

You could open this bank account. I know of many people using this. No fees

[Pathfinder76]

Originally Posted by JB_AOL

How is that different than a prepaid card? Any card is skimable. Difference is, a visa debit card has the same protection as a visa cc.ie, you get your money back.

Umm. Ok. You do you. But I can tell you that you are much better off using a credit card.

[Pathfinder76]

Originally Posted by JB_AOL

So.. what do u do if your bank or the pp cc site is down? Just sit at the gas station waiting til it comes back online?

Seems like alot of headaches for such a rare occurrence

It makes zero sense.

[JB_AOL]

Originally Posted by Pathfinder76

Umm. Ok. You do you. But I can tell you that you are much better off using a credit card.

I agree 💯. But IMHO a visa debit card is a much better option than prepaid cc.

[Dean2]

Originally Posted by tool

I’m considering getting a prepaid credit card for a little bit of travel, hotels, rental cars, some online purchases etc.

Something that I will load a couple thousand dollars at a time onto to use for these type of things but I don’t want another conventional credit card right now.


Anybody using these with success?

I don't post on here regularly anymore except for the financial thread, but sometimes I just can't stand the incomplete or plain wrong information that gets posted on here that could very negatively affect someone.

Prepaid cards

From: Financial Consumer Agency of Canada
On this page

Types of prepaid cards
Fees to use a prepaid card
Checking your prepaid card balance
Using a prepaid card
Registering your prepaid card
Reviewing the terms and conditions of a prepaid card
Cancelling a prepaid card
Lost or stolen prepaid cards

A prepaid card is a payment card that you can use to pay for purchases. Prepaid cards can be either physical or electronic. When you use the card, the merchant deducts the amount you use from the total amount on the card.
Types of prepaid cards

There are different types of prepaid cards.
Prepaid cards issued by a financial institution

Prepaid cards issued by a financial institution link to certain payment card networks, such as:

American Express
Mastercard
VISA

The payment card network logo will be on the card. You can use the prepaid card at most merchants that accept credit cards from the same payment card network. For example, you may use a prepaid Mastercard at a store that accepts Mastercard credit cards.

Note the following about prepaid cards issued by a financial institution:

you need to put money on the card
you can reload the card as many times as you want until it expires
the money on the card won't expire
you may have to pay a fee to reload the card
you may be able to make cash withdrawals
you usually won’t have to pay for transactions you didn’t make or approve

Replacing a prepaid card after it expires

If your prepaid card expires and it still has money on it, contact the prepaid card issuer.

The card issuer may:

send you a new card
send you a cheque for the remaining balance on the expired card

The card issuer may charge you a fee for these services.
Promotional prepaid cards

You may get a prepaid card as part of a promotional, loyalty or award program. Like other prepaid cards, they link to a payment card network.

Note the following about promotional prepaid cards:

there’s usually an expiry date
you can’t reload them
you can’t make cash withdrawals

Read the card agreement carefully for details about the terms and conditions.
Fees to use a prepaid card

Fees can lower the value of your prepaid card. This means you’ll have less to spend. Review the terms and conditions of your prepaid card to find out what fees apply.

Depending on the kind of prepaid card you have, you may need to pay fees to:

activate your card
make purchases
check your balance
withdraw money from an ATM
replace the card
customize the card
load more money onto the card
cover overdrafts
transfer the remaining funds onto a new card
maintain your card if you don’t use it for a certain period
keep your card active each month

Activation fees

Some prepaid cards charge an activation fee or purchase fee. You pay the activation fee only once. The fee isn’t refundable. Activation fees vary. They can be a flat fee or can depend on the card’s value.

If there’s an activation fee, it takes money from your card. For example, if a $50 prepaid card has an activation fee of $4.95, then the actual amount of money on the card is $45.05.
Checking your prepaid card balance

Most prepaid cards offer several ways to check your balance and transactions, including:

online
on a mobile device
in store
over the phone

You may have to pay a fee to check your balance.

Prepaid cards from federally regulated financial institutions must provide a toll-free number so you can check your balance.
Using a prepaid card

Before buying the card, find out if the places where you shop accept the card, such as:

hotels
vehicle rental agencies
pay-at-the-pump gas stations
a single store or a group of stores
online merchants
merchants outside of Canada

A merchant can decline a prepaid card if:

the merchant doesn’t accept prepaid cards as a form of payment
the balance isn’t enough to pay for the purchase
there‘s a hold on the funds on the card

Registering your prepaid card

You must register your card to be protected from unauthorized transactions if it’s lost or stolen. Unauthorized transactions are transactions you didn’t make or approve.

To register a prepaid card, you usually have to give the card issuer the card’s registration number and your contact information.
Reviewing the terms and conditions of a prepaid card

Each prepaid card has different terms and conditions. Take time to review your prepaid card agreement so that you’re aware of any expiry dates, fees or limits.

Find out what key details your financial institution must give you when you get a prepaid card.
Cancelling a prepaid card

Generally you can’t cancel a prepaid card. The only way to access the funds is to use the card.

Some card issuers will allow you to cancel the prepaid card for a fee. The issuer deducts the fee from the remaining balance before you get any money back.

Check the card’s terms and conditions for more details.
Paying bills with a prepaid card

You may be able to pay bills with a reloadable prepaid card. Check your agreement and ask your issuer. Find out if the merchant or service provider accepts prepaid cards.
Holds on funds when using your prepaid card

Restaurants, businesses that provide a service, hotels, car rental agencies or pay-at-the-pump gas stations may put temporary holds on the money on the card. This may limit the amount of money available. Check your balance after using your prepaid card.

For example:

If you use a prepaid card to book a hotel room, some hotels will immediately reserve funds on the card to hold the room. You won’t be able to use this money to make other purchases. Once you've settled your hotel bill, the hotel credits any unused money from the hold to your prepaid card. If the hotel doesn’t clear the hold immediately, there may be a delay before you can use the funds
If you use a prepaid card at a restaurant or other business, they may reserve funds to cover tips by adding an extra charge to the card

Lost or stolen prepaid cards

Report your card if it’s lost or stolen. The prepaid card issuer may transfer money left on the card to a new card. Check whether a fee applies.

In some cases, losing the card is the same as losing cash. You can’t recover the money on the card.
Unauthorized transactions

If your prepaid card is lost or stolen, report it to the financial institution that issued your prepaid card as soon as possible. In some cases, you may not get your money back for any transactions made before you reported the card lost or stolen.

You may not have to pay for an unauthorized transaction if your prepaid card is covered by a zero liability policy or fraud protection guarantee.

This may include cards which are:

registered
reloadable
issued by federally regulated financial institutions
part of a payment network such as American Express, Mastercard or VISA

You may have to pay for unauthorized transactions if you didn’t act responsibly to protect your card or if you shared your personal identification number (PIN).

Check your prepaid card agreement to see what happens if your card is lost or stolen.
Related links

Prepaid cards: know your rights
Gift cards

[tool]

I want this for work expenses and travel. I haven’t used a credit card for years.

I don’t like credit cards in general.

I don’t like how they charge both the seller and the buyer.

Apparently I still have a $13,000+ credit card limit with TD bank but I haven’t used that account for over 10 years.


It was a student visa that I applied for in university and as a starving student naturally had a healthy balance to pay off at high interest.

Paid it off years ago and never looked back.

Since the account has been inactive they have never sent me a new physical card.

Some of these prepaid products or whatever you call them will PAY ME for both purchases I make with the card and interest on the money I keep in the account.

Seems like it might be a better deal to me?

Maybe not? I don’t know. Maybe I have to suck it up and get a new physical card from TD or whoever.

[EZM]

Originally Posted by bucksnbears

EZM. with a prepared card, you can't get caught "overspending " what you can't afford.

Well I guess you are right if a person has no sense of responsibility, a lack of self control and unwillingness (or inability) to understand the consequences of his/her actions. But honestly that's a totally different discussion really.


I think Dean's post explains it quite clearly, and he is likely one of the most qualified people on here when it comes to financial/bank stuff - and, it underpins pretty much how I saw the differences between the two (with a few exceptions).

I just don't see any advantage - only disadvantages to using a pre-paid.

[tool]

Koho looks interesting, I like how it pays you rewards on purchases and interest on the money you keep in the account. No fee transactions etc etc.

Anybody use this product?

[Big Grey Wolf]

My only justification for prepaid CC is to buy stuff online. Thus only say $500 loss from the scammers. Do not trust the bank/visa to cover my losses from regular card.

[fishnguy]

^ But they would on a regular credit card. You are likely, though not necessarily, to eat the loss on the prepaid card, on the other hand.

[GStyler]

I have a CIBC Air Canada AC Conversion card.

This is a pre-paid card, with full protection - just like a normal credit card. If it gets compromised, you sill be reimbursed. (mine was compromised, and i was reimbursed).

You can pre-load it with a number of different currencies, so the conversion is done by your bank - not by some sketchy ATM, or 3rd world bank.

I only have one credit card that I normally use, so this is really nice to have a a backup, incase mine get compromised while traveling. I use this one at sketchy retail locaitons - subway tickets, gas stations, etc. when traveling.

Also, just like a normal credit card, you can do online banking with it. and log on to see your balances, and transfer money to it online. ...so you can put $50 on it if you want or $1000. you can log on with your phone, and put the value you want to spend 1 minute before you spend it.

A normal pre-paid card is no different than cash. lose it, or it gets compromised - its gone.

[HuyFishin]

Originally Posted by tool

I want this for work expenses and travel. I haven’t used a credit card for years.

I don’t like credit cards in general.

I don’t like how they charge both the seller and the buyer.

Apparently I still have a $13,000+ credit card limit with TD bank but I haven’t used that account for over 10 years.


It was a student visa that I applied for in university and as a starving student naturally had a healthy balance to pay off at high interest.

Paid it off years ago and never looked back.

Since the account has been inactive they have never sent me a new physical card.

Some of these prepaid products or whatever you call them will PAY ME for both purchases I make with the card and interest on the money I keep in the account.

Seems like it might be a better deal to me?

Maybe not? I don’t know. Maybe I have to suck it up and get a new physical card from TD or whoever.

aside from the annual fee. what kind of fee is the buyer getting charged?
I'm sure any business is happy to have you regardless of the fee they are getting charged.

[HuyFishin]

In this world there is credit card people and non credit card people.

If you have tons of self control and you pay off your cards without holding a balance paying extra fees, overdrafts and interest. Then a credit card or even a charge card is far superior then any other method of payment.

If you have zero self control and you make only the minimum payments then you will drown in extra charges and fees. You dig yourself deeper and deeper till you can never pay it off.(i know this from personal experience) If you're in this boat then I can understand why a prepaid card is needed. If anything I would just never have a credit card.

If any of you need financial motivation I recommened watching caleb hammer on youtube.
https://www.youtube.com/@CalebHammer