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moneysense.ca, 27/10/09
Reader Tip: Use Prepaid Credit Cards for Online Purchases
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[NB: Thanks to reader Dave for today's tip. If you have any story ideas, comments or tips, feel free to contact me.]
Prepaid Credit cards are not as big here as in the US but a few are available — Royal Bank, for instance, offers a prepaid Visa card. I don’t think these cards make very good gifts but you can use them for online purchases where you don’t want to put the information on your main credit card “out there”. You often hear of retailers not stopping withdrawals or charging too much; with a prepaid card you can limit your risk for a fee of $5 or less.
moneysense.ca, 27/10/09
So when you make a purchase, are you saying that your purchased information doesn’t show when you get your report?
I’m not sure I understand your comment CanadianCC. When you make an online purchase with a Prepaid credit card, you’re only risking the money on that card to fraud. If you pay with your regular credit card and it is compromised, a lot more could be at stake. Granted, credit cards reimburse you for fraudulent charges but it may be a hassle to cancel all pre-authorized payments, sign up for new automatic withdrawals and report and follow-up on fraudulent activities.
Ok, I guess I have misunderstood in the first place. I thought you were talking about information regarding the purchase, not the credit card account.
I got my card cloned twice and it was by purchasing in stores. It never happened to me with online purchases.
I think it’s a good thing to consider, especially if you have a card with a pretty high spending limit. At least with the pre-paid versions you would be at less risk.
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We use MuchMusic Prepaid card for websites that has less reputable. We also have Capital One Prepaid Card.