Prepaid credit cards.

Discussion in 'Economics' started by ARogueTrader, Nov 29, 2003.

  1. Nope, if the card is not part of the visa/mc franchise, the vendor has to have an agreement with the issuer. Magnetic strip is insufficient. Go abroad and try using your atm card without a visa/mc logo. Anything that is "pre-paid" is a waste of money. The only benefit is that of occasional convenience - like the example with the kids on a trip above. Example, you are renting an apartment for $1000 a month. You have 12000 in cash you don't need. Two options - prepay the rent for the year so you don't have to remember to make those monthly pmts (now, isn't that convenient?) or invest it and earn interest. Which one do you choose?
    #11     Nov 29, 2003
  2. only limit is you must use the money within 7 years. i fully intend to trade for a new truck free within 7 years.
    #12     Nov 29, 2003
  3. Yep, that does sound like a good card. Except the GM cars suck :D. Otherwise, I'd proudly carry it in my wallet. I wonder why BMW doesn't offer those cards? Hmmm. Could it be b/c they don't need to spur their sales that way? :D
    I'm just kidding guys. No need to flame me for trashing GM cars. I still have a firebird in my garage - probably the last American car I'll buy.

    Edit: On second thought, one can always resell the new GM car after it's purchased at the discounted price. Thus, the card might be worth looking into.
    #13     Nov 29, 2003
  4. Thanks for the info....I do not use credit cards...could I get this deal with a debit card? Do they have checking accounts?

    This 5% could be worth $4,200.00 in 7 years.....easy

    Michael B.

    P.S. Don't trade it in...... sell it in the paper..... you will do much better.

    #14     Nov 29, 2003
  5. bmw. over priced slug. i love my chev 4/4 truck.
    #15     Nov 29, 2003
  6. Right, you are most informed how programming a credit card/capture card reader works.

    Have you ever heard of card readers, and their class 1, 2, and 3 as it relates to point of sale systems?

    You probably think Pay-Pal was a bad idea in the beginning too.

    This card will be hot for on-line purchases where people don't want to risk giving out their credit card.

    Sometimes you are such a limited thinker....
    #16     Nov 29, 2003
  7. Banjo


    GM cards are the best deal out there, my bro pays his kids college tuition with it and and buys them a gm car if they graduate with at least a 3. cum. They're at expensive schools so it's a chunk.
    #17     Nov 29, 2003
  8. 4200 in 7 years? i put everything on the card. i make about 1500-2000 a year.
    they dont have debit cards. a credit card is a debit card if you pay the bill every month. whats the diff?
    #18     Nov 29, 2003
  9. A vendor capturing money from a pre-paid credit card has no worry about charge backs as you do with credit cards from Visa and MasterCard. Once this catches on, it will be huge.

    My guess is you will see these pre-paid credit cards issued from Visa, Mastercard, and all the major banks soon. They solve a lot of problems with credit cards.

    Really folks, think this through, okay?
    #19     Nov 29, 2003
  10. I didn't catch the full story on Christmas shopping that was on NBC News tonight. But the half of the story was the popularity of "Gift Cards," or "Branded Cards." She mentioned the associated fees if the cards are not used within an X period of time. The report also mentioned that almost 4 billion dollars worth of cards go unused each year.

    It's the classic business plan of American Express from college. We have your money and whether you use it three days from now or three months from now - thanks for the free interest and the use of your money. Gee, I wonder why the big push by banks and retailers for these cards...
    #20     Nov 29, 2003