"shopping card" or "buying card" substitute for credit, debit and gift cards

learning · Post by **learning** » Mon Jan 02, 2012 8:26 pm

Hey everybody, I'm wondering whether a good alternative exists for credit, debit and gift cards. Basically, what I want is a card that is not connected to my bank accounts or to my credit rating, that I can prepay amounts onto and then use for shopping, that has low total annual fees (like $1/month), and that can be used everywhere credit and debit cards are accepted. Most gift cards are bad deals and most prepaid cards are also bad deals. Does anybody know of any prepaid shopping cards that are not bad deals?
Thanks,

Learning

riparian · Post by **riparian** » Tue Jan 03, 2012 12:21 am

I know a lot of people use green dot, but I don't know if that makes it a good deal.

Rex · Post by **Rex** » Tue Jan 03, 2012 1:24 am

The last time I had a Green Dot card, I had to use my SSN to activate the card, this was a couple years ago, but it was something /not/ stated on the outside of the packaging. I don't know if that's changed now, but I don't like dishing out my SSN in general. :/

Hoplite · Post by **Hoplite** » Tue Jan 03, 2012 1:46 am

I've used a Green Dot in the past, but times change. This is from the cardholder agreement:

Important Information About Procedures for Registering Cards: To help the government fight the funding of terrorism and money-laundering activities, federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account. What this means for you: When you register your Card, we will ask for your name, address, date of birth, social security number and other information that will allow us to identify you. We may also ask to see copies of your driver's license or other identifying documents. We also will request information of any Registered User, including, but not limited to, the full name and date of birth of any Registered User.

Rex · Post by **Rex** » Tue Jan 03, 2012 4:43 am

Hoplite: Ah, well given that I was around fifteen at the time (almost eight years ago), and the fact that such information wasn't written on the exterior of the packaging, my mum was required to set it up under her SSN; she wasn't really pleased about that fact not being said up front, though. *shrug* I understand the reasoning behind it, though.

learning · Post by **learning** » Tue Jan 03, 2012 9:36 pm

thanks for the tip. I checked out greendot.com and the monthly fee is $6 or $72/year, which is more than I would like to pay, although it is on par with other prepaid visa and mastercards that I've seen in the stores around here. Does anybody have any other suggestions?

C-Dawg · Post by **C-Dawg** » Wed Jan 04, 2012 3:28 am

Why not open an online checking account like ING or perkstreets and just add money every month?
ING has free overdraft credit that keeps you from getting fees if you go a little over before adding. Perkstreets, I believe, has the option to not allow any overdraft (ie card is just declined if funds are not sufficient).

BennKar · Post by **BennKar** » Wed Jan 04, 2012 3:47 am

I have no problem with using credit cards tied to me, but if you want to go the stealth route, I still think you should consider the pre-paid VISA (or Mastercard) route. Yes, there are fees, but periodically you can buy them with no fees. I have seen them on sale where the activation fee is rebated (or cash is credited back if you use the CVS cash back system). Keep an eye out for these sales and buy enough for a few months and should be fine.
BTW, I have never tried this as I will just use credit cards, but I have never heard of any problem using them.

JohnnyH · Post by **JohnnyH** » Wed Jan 11, 2012 9:28 pm

This is one subject on which I often disagree with ERE/frugality communities. I think credit cards are pretty great. I currently have $1800 in credit card bonuses... I once bought a house on a credit card and got 6.25% cashback on the purchase.