Pre Pay 'Credit' Cards

[Stu Jackson]

Originally Posted by weavis

The only fee is to load the card and an ATM use fee. I did it today. Loaded £1k on the card and the fee was 2%

Your card and card company may be different.

1,000 x 0.02 = 20

A few beers.

A cost to use your own money?

I fail to understand the "convenience."

We have a no-cost credit card with a bank we've been using forever.

[Jd1]

Originally Posted by Stu Jackson

We have a no-cost credit card with a bank we've been using forever.

Better yet, get a card that pays YOU. A no fee card can pay 1% and we just got a World Elite Mastercard that pays 1.75% on all purchases with a yearly $120 fee.
On all credit cards you HAVE to pay your full balance on time because otherwise you get taken to the cleaners ... so if you are out of reach frequently, a credit card may not be such a good thing. On the bright side, you can have a positive credit balance (where you paid more than what you owed), not worry about payment deadlines and still get your cashback perk.

[StuM]

I have two bank accounts with the same bank. One is an interest bearing savings account. The other one has a Mastercard Debit card attached to it.

I can transfer funds between the two accounts using a smartphone or a computer anywhere in the world that I have internet access. (Or rather less conveniently, anywhere I have a phone connection)

So - I keep enough money in the tied account for immediate requirements, transfer money from the interest bearing account whenever it gets low or I anticipate large expenditures. I can also transfer money back out of the tied account into the savings account if I find I don't need it all or if the card is lost/compromised.

Much better than a pre-loaded card!

Works well for me all over the world.

[goat]

I've always just used a regular credit card but I overpay so it's carrying a positive balance. Same thing?

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[windycityxx]

A lot of the generic pre paid debit cards at your local grocery store, Walmart, Target etc only work in the USA, so just keep that in mind.

I wanted to buy one for use in the Bahamas and when I called customer service they said US only.. anyone have one that works anywhere in the world for point of sale purchases?

[Derek Lumb]

I use a "Kalixa" prepay card for any high risk transactions. It costs nothing to load if you load it from your debit card and has a decent fx rate.

Credit card may carry protection, although probably less so here in Europe but it is a complete pain if you get scammed on the card because the bank will cancel your card and send the new one to your home address - not great if you are away sailing. Fx charges are nasty too.

When out of the UK we get cash using a commission free debit card and run a cash economy on the boat (we draw out quite a bit in the first few days to build up an emergency stash on board because daily cash limits are quite small). That way the chances of being scammed on a card are remote and no nasty cc bills when we get home. It also saves us £100+ in commission and charges.

[weavis]

Originally Posted by Derek Lumb

I use a "Kalixa" prepay card for any high risk transactions. It costs nothing to load if you load it from your debit card and has a decent fx rate.

Credit card may carry protection, although probably less so here in Europe but it is a complete pain if you get scammed on the card because the bank will cancel your card and send the new one to your home address - not great if you are away sailing. Fx charges are nasty too.

When out of the UK we get cash using a commission free debit card and run a cash economy on the boat (we draw out quite a bit in the first few days to build up an emergency stash on board because daily cash limits are quite small). That way the chances of being scammed on a card are remote and no nasty cc bills when we get home. It also saves us £100+ in commission and charges.

The second time I had to change my bank number and have a new account, was the last time I traveled for an extended period using the bank CC. I can top up online from my bank account for free.

Compared to my bank charges, 2% up to a max of 20 is cheap. Atms charge regardless for the service.

For safety reasons I prefer cash debit cards. I even use them in the UK for items over $500 and still have the CC protection.

[valhalla360]

Originally Posted by StuM

I have two bank accounts with the same bank. One is an interest bearing savings account. The other one has a Mastercard Debit card attached to it.

I can transfer funds between the two accounts using a smartphone or a computer anywhere in the world that I have internet access. (Or rather less conveniently, anywhere I have a phone connection)

So - I keep enough money in the tied account for immediate requirements, transfer money from the interest bearing account whenever it gets low or I anticipate large expenditures. I can also transfer money back out of the tied account into the savings account if I find I don't need it all or if the card is lost/compromised.

Much better than a pre-loaded card!

Works well for me all over the world.

Agreed. Also makes it easier to track spending as your account will list all transactions.

[weavis]

Originally Posted by valhalla360

Agreed. Also makes it easier to track spending as your account will list all transactions.

So does a prepaid card. I have it online.

My reason is primarily to disconnect from my bank.

It is a Mastercard with all the protections and rights pertaining to.

[valhalla360]

Originally Posted by weavis

So does a prepaid card. I have it online.

My reason is primarily to disconnect from my bank.

It is a Mastercard with all the protections and rights pertaining to.

I already have enough on line passwords to keep track of, so having it all in one place is a nice benefit.

I guess I don't have any particular hatred towards my bank so don't feel the need to disconnect from them.

[Sailor_Hutch]

I agree with the idea to use prepaid cards for high risk transactions, and to avoid using the debit mode of bank cards. For prepaid, it seems there is a lot of variation in the number and type of fees applied. So, it'd be wise to be knowledgeable about that. One particular card I used had a 6% up-front fee, which if you ask me is pretty high to use your own money. Another had a per month "inactivity fee" which eventually can exhaust the card.

I think these things have their place, and since the concept is new there's still some shake out going on, and probably some regulation coming.

But, they're handy. Another side benefit is the potential to be anonymous.

[weavis]

Originally Posted by valhalla360

I already have enough on line passwords to keep track of, so having it all in one place is a nice benefit.

I guess I don't have any particular hatred towards my bank so don't feel the need to disconnect from them.

NO one said anything about hatred.

Its an inconvenience to me to change compromised accounts. The best security is to remove that account from being accessed directly. I also have my card that is multi account-

I dont pay monthly fees. If I lose or have the card stolen, The monies are refunded to a NEW card and I carry on. I also have the ability to have coded ATM withdrawals is the card is damaged or lost.

I have EUROS and Sterling on the same card so no currency exchange fees.

https://www.multicurrencycashpassport.com/

[cabo_sailor]

Don't you pretty much have to have a "chipped" card for use out of US?


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[weavis]

I also, speaking from my own experience having lived in the States for 14 years, see that Europe is vastly more geared up to foreign travel cards than the USA. Perhaps the proximity and ease at which Europeans can travel 'abroad'?

I can have up to £5K on a multicard in mixed currencies. I buy a currency when the market rate is good.

On one card I have £3k in Sterling and 2K in Euros. The exchange rate for Euros is good right now.

On another card I have £1k in Sterling and 4k in Euros.

I am limited to £30K and year maximum top up on the card.

It would seem I also have a single currency card, just found with a few hundred euros on it. Never goes bad and can be transfered to another card if the 3 year expiry date happens.

The 2% load fee to a max of £20 and ATM withdrawal fee of £1 or €1.50 is NOTHING compared to my monthly bank charges.

It suits my sensibilities while traveling and works for me.

[Volkeno]

I have a Bluebird card from Amex. I have not yet had a fee on it. It is still an Amex card, so not everyone takes it. It has no foreign currency fees.
An account with Charles Schwab would give a debit card with no foreign currency fees as well.
I still use credit cards mostly because I wouldn't want my debit card or bank accounts compromised. That is why I carry the Bluebird card. I prefer spending money I already have.
At least the American cards now mostly have chips now.