Prepaid credit cards - Do they work in the US?

[ilovecats]

Hello! I'm new here. I'm planning a trip for early 2014, I live in BC.

I'm fairly young (20) and do not have a "real" credit card. I would not feel safe carrying around a wad of cash with me but plan to have some, of course, for smaller purchases where cards are not accepted.

I was considering purchasing a prepaid credit card for the trip, either a gift card for Mastercard/Visa or one of the prepaid reloadable ones from Canada Post or the Titanium Visas from Moneymart.

Does anyone know if these would work in the US? I assume they should, but I'm not sure.

Do places in the US charge you a fee to use your credit card? Would there be extra fees tacked on for a Canadian card?

I have nixed the idea of buying DL gift cards because then if I don't spend it all, I can't use it when I get home. At least with the gift card I can use it at home, too.

Any info would be appreciated!

 

[mom2disney6]

You should apply for a regular credit card and start building your credit rating.

 

[Luv'sTink]

http://www.rbcroyalbank.com/corpprepaid/_assets-custom/includes/faqs-for-cardholders.html

Scroll down to the third line, it says.....
Where can I use my RBC Visa Prepaid Card?

You can use your Visa Prepaid Card to make purchases wherever Visa cards are accepted, including online, by phone and at millions of retail locations worldwide. Standard cards cannot be used to withdraw cash at an ATM or to receive any other cash withdrawal or to make financial payments at any financial institution.

Line 14.....
Can cards be used outside of Canada?

Cards can be used while travelling outside Canada, but they do not include Chip technology. Some merchants may not be familiar with these types of cards, so it is recommended that you have another form of payment (credit card, debit card, cash or traveller's cheques) available when making purchases, to avoid potential processing problems or delays. If cards or card numbers are used outside of Canada or if amounts are charged in a foreign currency, the transaction will be converted into Canadian dollars no later than the date we post the transaction to your card at an exchange rate that is 2.5% over a benchmark rate Royal Bank of Canada pays the payment card company on the date of conversion. The transaction can be viewed on the cards transaction history.

 

[mamaCta]

I agree with the first response of applying for a real card. You can put all your funds on to that and use it instead.

The 2.5% fee on top of the exchange rate is standard for any type of card at any bank.

I would not deal with prepaid visas or gift cards. Those things are full of hidden fees.

 

[ilovecats]

Thanks for the info!

I've applied for a regular credit card but have been denied even with a small limit so I'm not going to apply again for a few months at least because I'm pretty sure it'll hurt my credit rating to apply too often.

I'm not sure if the RBC prepaid Visa is the same as all the gift cards, but good information about the exchange rate plus some. Thanks!

 

[mytymom79]

I used a titanium prepaid visa from Money Mart in November on our trip out to Disneyland.

Just remember when you are checking into a hotel if it is a prepaid card they hold a certain amount usually as incidental security deposit.

I usually get the hotel to send me a credit card authorization form and have my dad use his card for me to check in and cover the incidentals charge so I do not have the pending authorization on my card. I too am young and can not get a small credit card other than guaranteed one from capital one which is a rip off ! And is basically the same thing as prepaid !!

I used my same prepaid in Niagara Falls in September and it took a whole 45 days to return the deposit to my card. And it is not the hotel it is the credit card company.

I work for corporate customer service for one of the largest hotel chains and I hear this all day long. " I used my debit visa or my prepaid card to check in and the hotel has placed a hold on my card and I need that money" . THe hotel process the authorization when you check out it is up to the bank or cc company to process the refund and it takes awhile depending on your bank or company" Most prepaid or debit chequing cards take from 10 to 45 days to see it returned to your account.


Other than hotels , inside disney I had no issues at all .It was alot easier to use then cash. I just put all my spending money on the titanium visa and kept some small cash on me for snacks and drinks.


IMHO, I would only use for food and souvenirs down there no hotels or anything major. And you can not use them for car rentals. They work great for spending money !!!! The fees are pretty comparable to banks and other credit card companies. I think 2.50 if I remember correctly and the exchange. Everywhere took them because they are co branded visa !

 

[aprestwich]

You could also try the Home Trust Secured Visa, it's a full Visa card that you secure with a sum of money that they hold in trust, so if you want $1000 credit, you put down $1000.

Apparently great for building a credit rating because it shows up on your credit report as a normal card.

http://www.hometrust.ca/securedvisa.aspx

Andrew

 

[albertamommyof4]

try for a secured credit card. I think capital on has one and probably other banks. It is a great way to get credit ratings and once you build your credit up you can then apply for a non secured card.

 

[Susie63]

Why not get travellers cheques? You could use those to buy a Disney gift card and then as the funds are depleted...just use another one to top up the gift card.

 

[KNovacovschi]

I got. BMO prepaid travel MasterCard last year as i had claimed bankruptcy & unable to get a regular CC. I had used it for booking & paying for my trip, including at the hotel, and no holds were placed on the card. I just loaded it with the amount I wanted on it and away I went. Now it does take a couple of days for it to be applied like any reg CC payment & the exchange rate is applied the same as a reg CC but still worth it. It is much better then the Money Mart card. Also you could just try an apply for a regular capital one MasterCard. I have recently & because I placed my DH on it as a co applicant I qualified.

Sent from my iPhone using DISBoards

 

[ottawamom]

A second vote for travellers cheques. I have had no trouble using them anywhere in the US especially Disney. If you lose a prepaid credit card its gone. If you lose the travellers cheques they can be replaced. Put some money on your room when you get to Disney and you can use your room key like a charge card.

If you have been refused for a credit card don't go out in search of a company that will give you one. The bank must have refused you for a reason. Don't get in the habit of overextending yourself. It's a slippery slope.

 

[KittyKat1978]

I used a Disney gift card exclusively when I was at Disneyland last year (actually I had an AP and went 5 times in one year).

What I did was put $100 on the gift card and kept only $20 cash on me (incase I wanted to buy something somewhere that didn't take the gift card) and reload the gift card when needed (which could be reloaded at any gift store, even at the hotel). The bulk of my cash was kept in the safe in my hotel room.

I plan on doing the same at WDW this May. I will also carry $40 in cash with me for places that don't take the gift card (sounds like there more are non-disney owned places in WDW, where as in DL it really wasn't an issue, except for Earl of Sandwich).

I dislike dealing with cash as I feel rushed to pay usually end up with sooo much US change that I never use.

Good luck with your decision

 

[mcgraws]

I am not sure what bank you deal with but TD Bank has new technology debit cards that include the Visa Debit.

They are the standard debit card they issue now and can be used for online purchases and in stores in the US.

When I was booking my Disney vacation for August I asked if I could pay the deposit with my Visa Debit and I was able to.

Might be worth opening an account with TD Bank. For what it's worth I have been with them for over a decade and I find they are wonderful to deal with.

Hope that helps.

 

[Cheerio]

I use the BMO prepaid travel card in the US all the time for shopping and checking in/reserving hotels