Prepaid Credit Cards

Do a search and a through comparison before purchasing a card is the best way to find one that meets individual needs. In this article, the four major credit issuer’s personal prepaid options will be discussed.

American Express

American Express gift cards can be used anywhere that accepts American Express credit cards. Amounts up to $500 can be purchased. Funds never expire, but after the first 12 months of purchase, a $2 service fee will be charged a month. The fee for purchasing the card starts at $3.95, and cards can be purchased in-person at certain locations or online.

Cards can only be used in the United States. The card cannot be used for ATMs or for paying recurring subscription service fees. Lost or stolen cards can have the balance refunded or replaced. Specialty kids gift cards can be purchased from Safeway, Vons, and several other stores in-person.

The Be My Guest Dining Card works like a prepaid credit card at all restaurants that accept American Express. It can be used all at one restaurant or at several restaurants. Before using, be sure the card carries enough funds to cover a gratuity, because even if not planning to tip on the card, some restaurants will decline the card if sufficient funds are not available. Amounts up to $500 can be placed onto the card.

Discover

Discover offers a prepaid gift card that ranges in value from $5 up to $500. No purchase price is charged for obtaining a gift card, and free Priority Mail shipping is an added feature. The card will expire after 24 months; additionally, 24 months of non-use will cause a $2.50 a month service fee to go into effect.

The Discover prepaid credit card can be used anywhere that the Discover card is accepted. However, it cannot be used as some pay-at-the-pump gas machines, ATMs, or check cashing services. Some online businesses will not accept the card if it was not originally mailed to the holder’s address. The card cannot have funds added to it, although any returns or credits for merchandise can be added back to the card by a merchant. For this reason, keep all prepaid credit card receipts.

The card should be treated like cash. The added protection is that if stolen or lost, the remaining balance can be recovered, but only the balance from when the card is reported lost or stolen. Anything used before that time cannot be recovered. Keep the card number in a separate place for this purpose.

MasterCard

MasterCard offers several different financial institutions through which a person can purchase a prepaid credit card. Citibank, Keybank, Peoples Bank of Paris Texas, and Washington Mutual are all establishments that offer the prepaid option. Each card issuing organization has different features, so it is important to compare cards before choosing one.

The prepaid MasterCard is accepted everywhere MasterCard is accepted. Cards are good until the expiration date on the card. Keep all receipts for purchases, because the return amount will be put back onto the card. MasterCard gift and other prepaid cards offer zero liability for purchases made if the card is lost or stolen. Write down the toll free number and the credit card number and keep in a safe place in case of this event.

Because cards are issued from different institutions, it is important to read all instructions and information that come with the card chosen. Do not forget to sign the back of the card.

Various VISA Prepaid Credit Cards

Visa offers several kinds of prepaid credit cards for personal use. The common prepaid gift card can be issued from several different financial institutions. As with the other prepaid cards, Visa offers a protection for users if lost or stolen. Purchasers should thoroughly read the instructions before using their card, and keep all receipts as well as the card, even after the balance has been spent, for return purposes.

Visa Buxx is a reloadable card marketed towards teens, college students, and parents. It allows parents to monitor spending while teaching children financial independence. The card works like a check card, with the amount of purchase coming off the balance. Parents can make automatic transfers of set amounts, as well as determine a purchase spending limit. Some of the issuing institutions allow for a PIN number so that cash can be accessed from the card; check with the institution chosen.

The Visa TravelMoney card works like a traveler’s check, but without as much hassle. Instead of carrying around multiple checks, the holder simply uses the card. More money can be added at any time; and cash can be gotten at any international ATM that accepts Visa. It eliminates the hassle of currency conversion, and with the ATM option, eliminates conversion fees for cash. Luggage protection, liability if lost or stolen, and travel and emergency assistance are additional features. All prepaid credit cards have different features. Be sure to read the fine print for all cards, as some have certain restrictions for usage and states in which they can be issued.