All you want to know about Prepaid Visa:
http://usa.visa.com/personal/cards/prepaid/reloadable_prepaid_card_faq.html#anchor_5

Where can I use my Visa Reloadable Prepaid card?
You can use your card online, over the phone and at the millions of places that accept Visa debit cards—including supermarkets, pharmacies, clothing stores, drug stores, and more. There are some guidelines for special transactions that you should be aware of before you shop - refer to the next two questions for more information.

Are there any special types of transactions I should know about before I shop?
There are special types of transactions that you should know about.

Gas Stations - Paying at the pump may cause a hold of up to $50; consider paying inside with the attendant for the exact amount and signing the receipt instead.

Restaurants - Restaurants may verify you have enough money on your card for the dining bill. Make sure you have enough funds to cover any added tip.

Hotels - Hotels may put a "hold" on the amount of your estimated bill, making that amount unavailable for other purchases. When you check out, that hold may take a few days to be removed.

Auto Rentals - You may use your card for final payment for a rental car bill, but a credit card may be necessary to reserve a rental car.

Returning purchases - Store return policies may vary. You may receive a credit to your card, a cash refund or even a store credit, depending on the particular store. A credit to your account may take up to one week to process before it's available for use.

Paying Bills – Pay just about any one-time or recurring bill.


Oh well. That's basically 80% of what I use the cards for. Forget it.

I keep forgetting about these hidden "holds" that various businesses can put on your card. That certainly puts a damper on using these cards for anything more than purchasing things.

I don't use credit cards personally. My wife did behind my back, and now I am paying off the balance slowly but surely. Those cards got destroyed.

I have bank cards with VISA, but no credit. I have a corporate credit card that only gets used for corporate business.

I see no purpose in ever using credit cards for anything other than business. It is the worst situation you could ask for permanently, it's like paying double the value for an item purchased with a credit card, unless you can diligently pay the balance owed before the interest is applied, which I don't know anyone that does.

I've paid off my cards - 100% - since 1999. I've never paid interest since 1999, and because my various cards give me various cash incentives to use their card, I get the opposite of interest - in any given month, I make $40 to $60 in "points" balances, which I routinely use for gift cards at Ace Hardware, Lowes and Home Depot. We usually use that money to buy "consumables" - detergent, tape, gloves, cleaning supplies, batteries, etc.

The trick with these cards is to make sure you don't use them to buy things you could not pay cash for in the first place. That's it. That's the big secret.

If they credit card terminal at the electronics store suddenly stopped working and they told you to pay in cash, you should be able to go to the bank, get the cash and pay (and not get the bonus points).

If you can't pay NOW you can't afford it. That's it. If you're charging and paying interest on gas food, you're poor, you need to go onto public assistance. If you're charging the cable bill, you're an idiot. If you're charging tools so you can make more than you'll earn otherwise, go for it, but make sure you pay that debt down before you buy a bag of chips, a can of soda or a slice of pizza.

You know, the more I type here the more I've convinced myself that I'm just pissed off at TD Bank and what I need is a new Visa card, that's all.

Nevermind.

Bingo! and that's exactly how I would treat them too. Unfortunately for most, including my wife, it is too strong a temptation, and they get nicked.

So with the CCCs changing their MO on you, I can see where dropping them and sticking only with those that are reasonable makes a lot of sense. Kudos Martin.

+1 Bingo. My wife and I must be atypical, because through thick and thin (and that includes a fair amount of thin) we have always bought and paid for our lifestyles in the same month.

In response to Arney wondering why a credit card issuer wouldn't want a customer who pays their bill, just compare: 1 million card holders who all buy and pay for things on time: you make the credit card transaction rate of return from the vendors, which is 3-5%. Or, 1 million customers who all carry a balance at an average of 13.5% (which would be low) but 95% tend to be good for the debts. You make 13.5% APR (minus credit defaults, which should be limited by the credit limits applied), plus the 3-5% transaction fee from the vendors. Only when you start looking at the combination of higher and higher credit limits and higher and higher default rates does the credit card industry begin to look at the value of good, old pay every month customers. Similar economics account for the mortage industy, which is similarly messed up right now.

Hi, nice to meet you, my name's Chris.

There, now you do!

Way back in the day there used to be something called a "secured" credit card. It was a great way for young adults to start a credit history. It worked like this...

Deposit X dollars in a savings account with the issueing bank/cu. Typical was $500. That became your credit limit.

In fact, I still have one of these cards hanging around after 20+ years that I use exclusively for phone/online purchases and nothing else.

Anyone know if they still issue these?

I just wanted to clarify--so this is an argument for why banks and CC companies want to drop those who pay every month? It's obvious why the carry-a-balance folks are a gold mine for the banks, but I still haven't heard a good reason to jettison the pay-in-full folks that they already have.

Actually, come to think of it, I think I'm asking the wrong question. Banks don't want to lose the pay-in-full customers. I suppose the banks are betting that most pay-in-full customers will just swallow the change in the terms and just keep charging and racking up those transaction fees, even if they never carry a balance. I bet that if this type of customer rejected the changes and cut up their cards in droves, the banks would back down very quickly. Cash flow is cash flow and when people charged $2 trillion in transactions in '07, you don't want to lose a reliable revenue stream like the pay-in-full crowd. It's like when Time Warner recently flirted with the idea of tiered pricing for Internet service, the public outcry made them scrap that idea very quickly.

Down here in Cayman, if you don't own a home or any other major source of collaterial, thats the only way to get a Credit Card.