Prepaid credit card use

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Grayrock

Grayrock

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I am wanting to make a firearm purchase. I have been squirrelling away the cash for a while now. Find some sites with decent prices, but they only take Visa, MasterCard or Discover. I was lamenting this fact with some of my brew buddies this weekend (as we brewed Concrete Blonde, Bohemian Bronze and an updated Pilsner) and they suggested I get a prepaid credit card. Apparently you use the cash to purchase a card and then use the card to make the purchase. Has anybody done this before? Do the prepaid cards process exactly the same as a regular credit card? This would be useful to me if it is that easy. What is the downside? Thanks for any insight.
 
Grayrock said:
I am wanting to make a firearm purchase. I have been squirrelling away the cash for a while now. Find some sites with decent prices, but they only take Visa, MasterCard or Discover. I was lamenting this fact with some of my brew buddies this weekend (as we brewed Concrete Blonde, Bohemian Bronze and an updated Pilsner) and they suggested I get a prepaid credit card. Apparently you use the cash to purchase a card and then use the card to make the purchase. Has anybody done this before? Do the prepaid cards process exactly the same as a regular credit card? This would be useful to me if it is that easy. What is the downside? Thanks for any insight.
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There isn't really any real downside, except for a nominal card fee for purchasing one. You can get them in a lot of places, like Walmart, Lowes, etc.

Another thing you might consider is a VISA debit card from your bank. It's an ATM/debit card that you can use anywhere VISA is used, and the money comes straight out of your checking account.
 
How does this work with their (PayPal) card? Who knows.
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Actually, it isn't "their card" at all. It just says 'PayPal' on the card, but it is a separately issued bank card attached to your PayPal account.
My current 'PayPal' Mastercard was issued by 'The Bancorp Bank'.
Every gun (many, many) and ammunition (much) purchase I have made since 2001 has been with a PayPal card...at gun stores, online, gunbroker, etc. Nary an issue.

.
 
Should be fine. It make cost you $4 or $5 dollars at your local Walmart/Target/Kroger/Giant Eagle.
 
Grayrock- Do you not have a checking account?
Most if not all offer a debut card.
 
I can tell you for sure you will be finewith prepaid VISAs. Like another said though, you gotta watch out for fees. I went ahead and got mine used up because the fees are like 5$ a month until the card expires or you use it up.

I bought 440$ worth of barrel, lug, and barrel nut with 2 prepaids and a credit card to finish off the last remaining bit. But you may have to do a call order. I dont know if you can just go order off a website.

If your really saving money as you are, but dont want to open up a banking account, why not save up your cash. Then when your ready, add it too you bank account and buy with whatever card you have and pay it off right away. I do the same thing and just use my credit card as debit for security reasons.
 
I would not use debit in an Internet transaction. Too risky being attached to your bank account. They also often don't come with the same protections.
 
Maybe I missed it, why not just have a credit card and pay the balance every month? It's what I do.

One small caveat, some online companies won't accept those type of cards, especially with no associated address match.

I've used my no fee cash bonus Paypal card plenty of times to buy guns. And yes I detest Paypal and B of A and several other banks for being against our US Constitution - and maybe they make money from me - but in their face I buy firearms and firearm related items. Also, I run two online businesses and our customers demand Paypal as a form of payment.
 
guyfromohio said:
I would not use debit in an Internet transaction. Too risky being attached to your bank account. They also often don't come with the same protections.
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Guyfromohio is right.

Here's a basic summary of the differences between a credit card and a debit card that looked right from what I know.

Here's a list of "10 places you don't use a debit card". Online is #1.

The biggest thing (to me anyway) if bad people get your information on a credit card you're usually out at worst $50. With a debit card they empty your checking account (and maybe get you slammed with overdraft fees).

I don't know your situation precisely, but another option is a secured credit card. You save your money, go to the bank, give it to them as a security deposit, then they give you a credit card with a line equal to the security deposit. The money makes no interest (much like most savings accounts these days) since it's used as security if you don't pay your CC bill. The big advantage is that you can build a credit rating by using it and paying it off each month, then eventually move to a non-secured card.
 
guyfromohio said:
I would not use debit in an Internet transaction. Too risky being attached to your bank account. They also often don't come with the same protections.
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They don't have the same legal requirements on the protections, but as long as you're with a national level bank and not "Bob's Checking and Loans" pretty much all banks extend identical protection to debit cards vs credit.

I've been using debit cards for online transactions for 15 years now. My card # has been compromised ONCE and the bank immediately noticed the suspicious transaction, contacted me, refunded the amount in full, and sent a new card.
 
I had a debit card from a large local bank. Also a Visa from a large, national sporting goods company HQ in USA. Both numbers were stolen, probably from my computer. Someone bought a cell phone with one card and someone else stayed in Dubai with the other.

I got the Visa sorted quickly, the bank account took longer, and yes it could have been drained completely. I no longer have a debit card. I have much better service with the Visa, and I earn points toward future purchases at that company (they sell reloading stuff). I pay the bill in full each month.

I don't like to have a CC attached to my checking acct. YMMV.
 
mgmorden said:
They don't have the same legal requirements on the protections, but as long as you're with a national level bank and not "Bob's Checking and Loans" pretty much all banks extend identical protection to debit cards vs credit.



I've been using debit cards for online transactions for 15 years now. My card # has been compromised ONCE and the bank immediately noticed the suspicious transaction, contacted me, refunded the amount in full, and sent a new card.
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Depends on your bank. I use a "community" bank, rather than a large regional or national bank, that guarantees their debit card against fraud. However, I still don't trust a debit card online. The laws protect "credit" cards, not debit cards, unfortunately.
 
It kind of depends on the bank, with your debit card. My number got highjacked a while back but it got sorted out in the end. Was really glad it wasn't at rent time, though.

Prepaid cards and such are just fine, it's just the fees could be a little nicer. All I can say about that sort of thing is to not use whatever Amscot offers. I had to for a little while (issues with a bank) and they ended up double-charging me here, and sticking on phantom charges there. They even put the last one 'under investigation,' I emptied it out after they said it was excused and they'd take care of it. And then they didn't for a couple months, until declaring I owed them the money after all. I had to tell them that was too bad and openly accuse them of theft before they decided I was right the first time.
 
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I have a Visa credit card that the bank has tied to one of my checking accounts. I can only use it for the amount that is in the checking account. I'm sure not all banks do this but it is a small town bank and works with its customers. BTW there are no fees.

What you have available I have no idea.

My wife and I started it for use at gas stations, but now I use it also for PayPal purchases, however it is only tied to PayPal and not their account.

YYMV
 
Brands....

I advised the use of Rush Card Visa, www.Rushcard.com . I've used it off & on since 2006. I never had any problems or identity theft-fraud issues with it.
Rush Card Visa is secure and doesn't stack a lot of fees or red tape up. I use the free direct deposit with one of my employers with Rush Card Visa & I've purchased firearms, www.GunsAmerica.com with no hassles.

One credit/debit card I noted to avoid is Walmart's Bluebird, www.Bluebird.com . It's not safe. I had 2 ID theft/scam charges on it in less than 12mo. :cuss:
The second was for a several point of purchase sales(a "customer" at a retail business using a cash register). AmEx refunded all my $ but I had to file a police report(my local PD was worthless too :mad: ).
The 2nd fraud amount was nearly $900.00.
I would not use any Bluebird accounts & frankly I don't think any of the AmEx cards are very secure. Debit or credit.
 
rhinoh said:
Grayrock- Do you not have a checking account?
Most if not all offer a debut card.
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Both my son and my son-in-law thought a debit card was the way to go. Both subsequently had their bank accounts cleaned out. As they were originally advised, they both use a credit card of some kind now. With a credit card you can dispute a bogus change immediately. When you bank account is cleaned out the process is a mite more complicated.
 
It's an ATM/debit card that you can use anywhere VISA is used, and the money comes straight out of your checking account.
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I'd really advise against using any debit card or anything tied to directly your checking account on-line. Cards used on-line have a history of "leaking" out. I buy a lot on-line and for the past six+ years have been averaging getting a new card because of fraudulent on-line charges about once a year.

My wife's card leaked out right before Xmas and the crooks hit four up-scale stores for a total of over $10K on four purchases. We didn't lose a penny, but it was a hassle to not have a credit card for a couple of days while they sent us new ones. The stores ate it because they were too "racially sensitive" to ask for IDs on $2K+ purchases.

Credit cards have fraud protection and low liability limits if the card is stolen and reported promptly.

Getting your money back form debit card fraud or checking account hacking is much more hassle -- plus you are out the cash until the issues are settled. With a credit card you dispute the charge and don't pay until its settled, which means you pay nothing if its really not you or your friends and family.

If you want or need to buy on-line get a credit card. Capital One and Bank of America have good fraud protection and have taken good care of us though many incidents over the years. They are "high interest" but no fees, and since we pay our bills fully every month its the way to go for us.
 
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Unless of course if one does as I do. I have the second checking acct, there are limited funds in that acct., it is resupplied every month. If in fact it got cleaned out is would not effect how I lived or be a big loss, granted I do not wish to lose it, but hey, not a big deal.
 
jcwit said:
Unless of course if one does as I do. I have the second checking acct, there are limited funds in that acct., it is resupplied every month. If in fact it got cleaned out is would not effect how I lived or be a big loss, granted I do not wish to lose it, but hey, not a big deal.
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Bingo.

The same philosophy I have for my "internet card". My internet credit card is one with a deliberately low credit limit (three figures). I refuse to let the card company increase the limit. If someone gets the number and maxes the card out, I can easily pay the entire thing off, even if the credit card company decides they're not going to cover a fraudulent claim. This way my credit history can't be hurt.
 
Unless of course if one does as I do. I have the second checking acct, there are limited funds in that acct., it is resupplied every month. If in fact it got cleaned out is would not effect how I lived or be a big loss, granted I do not wish to lose it, but hey, not a big deal.
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I'm not seeing a lot of "free checking" other than at credit unions unless you have a minimum balance more than I'd be OK with losing. Perhaps its better in rural areas.

You get the best fraud protection and minimum hassle with a credit card. As I said the no fee, high interest cards are a great deal if you have the discipline to pay the full amount every month.

We put about everything on a "cash back" credit card and have enough in savings to get "bonus" payments -- what is sad we make over 2X from the cash back card than we do with our CDs in the credit union with nearly 2X the deposits. What really stinks is bad as the interest is on the CDs, the Feds demand ~25% of it :( They can't tax the cash back card refunds -- yet
 
Rewards points are what nearly paid my Colt SAA in full.

Proper management of credit cards is critical. First of all, do NOT carry a balance on them if at all possible. An emergency use is one thing, but routinely carrying a balance is just plain fiscally stupid. Second, choose the credit card wisely: low interest rates are good, but rewards points are just as good, if not better. Especially when you carry no balance.

I use my major credit card for EVERYTHING that doesn't involve online purchases. And as soon as I get home, I go online to my credit union and transfer funds to pay off what I just used the card for. This way I carry no balance and pay no interest. And the rewards points add up to cash money in return. When you consider how much money you run through in a single year, it's easy to cycle tens of thousands of dollars through a credit card this way, which racks up some serious rewards points.
 
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