Smitedogg
Uzbekikitty
Premium
join:2000-11-11
Pueblo, CO | reply to hayabusa3303
Re: Ok
said by hayabusa3303  :prepaid credit card Anyone else see the oxymoron? |
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Ark
join:2002-06-08
Hudsonville, MI | Yeah, it's called a debit card |
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cdru
Go Colts
Premium,MVM
join:2003-05-14
Fort Wayne, IN
| said by Ark :Yeah, it's called a debit card While you can consider a debit card a "prepaid" card, I think what the parent was trying to say was more a low-value or one-time use prepaid credit card. The cards basically are designed to make a single purchase and after that point, become basically useless as they have little value. If the card number is compromised, you are only out the remaining balance on that card if any. With a debit card, all the person has to do is wait until a Friday when the majority of the country gets paid, then go on a spending spree. By the time it is realized, it's too late and the damage is already done. Sure you MIGHT be able to get your money back, but depending on what the bank's policy is, it could be a while.
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"What gives them the right to come in and do this?" she said. - Lady complaining that she was getting FIOS in her backyard. |
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MikeVx
join:2005-04-02
Southgate, MI
| said by cdru :With a debit card, all the person has to do is wait until a Friday when the majority of the country gets paid, then go on a spending spree. By the time it is realized, it's too late and the damage is already done. Sure you MIGHT be able to get your money back, but depending on what the bank's policy is, it could be a while. Which is why I class it as suicidal stupidity to have a debit card against a "live" checking account. I have a debit card, but the account is used for the card almost exclusively (the occasional small check also, but rare). If someone scams my card, the bank would guarantee the losses directly, but the hundreds to thousands I could lose in penalties and increased rates from bounced checks and other payment failures would NOT be covered. The dedicated account eliminates that problem, and all my repeating payments via the card are with companies that agree to behave nicely if I have to change card numbers due to scamming.
My regular account and other special-purpose accounts are all ATM-card only. |
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MGD
Premium,MVM
join:2002-07-31
Fort Lauderdale, FL
| Those policies do substantially reduce your exposure to fraud. However, it is worth noting that ideally the debit account should be at an institution that you do not have other deposit accounts with. That will preempt the option of attaching those accounts for overage recovery, or having them "on hold" until a fraudulent dispute is resolved.
MGD |
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Ark
join:2002-06-08
Hudsonville, MI | reply to cdru
You would call it a prepaid debit card, not a credit card. You aren't buying anything on credit if its prepaid, hence the original poster is right that it is an oxymoron. It doesn't matter if its one-time use or not. |
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wwdubbia
join:2002-06-03
Clinton, NY
| said by Ark :You would call it a prepaid debit card, not a credit card. You aren't buying anything on credit if its prepaid, hence the original poster is right that it is an oxymoron. It doesn't matter if its one-time use or not. However, debit cards rarely, if ever, report to the credit bureau, where the prepaids often do.
Many people use 'prepaid credit cards' to rebuild or establish good credit, whereas debit cards perform no such function.
The pre-paid credit card is not oxymoronic due to this differentiation. |
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