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Discussion Starter #1
I got a prepaid visa as a gift and it listed a $4.95 "purchase fee" and description says it applies at the time of purchase.

What exactly meant by "purchase" ?

  • The purchase of the prepaid visa, hence it's already been paid and it doesnt apply to me

  • Applies everytime I make a single purchase so it cost $4.95 + item cost
I'm incline to think it's the first point, but I can be wrong. Opinions? or if any of you guys have experience with prepaid visa?
 

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I think it means that every time you make a purchase, you get charged $4.95 extra by Visa for handling the purchase. On top of that, you may also get charged a merchant fee. Some prepaid cards are a rip-off as it's a way that they make their money. Depending on how much the card holds, try to make one or two large purchases to use it up, rather than a bunch of little ones.
 

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CuriousReader, the activiation or purchase fee is the charge for purchasing the card as a gift. Basically if I were to buy you a $50 prepaid visa, I would have to pay $55. There is no extra charge for using the card unless you hold it for a long period of time (greater than 6 months for mastercard).

Here is my recent post about comparing prepaid visa/mastercards in Canada.
 

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Discussion Starter #4
stardancer and FT even have differeing opinions, exactly why I got confused - the wording of 'purchase fee' is very ambigous. But since FT has experience with prepaid cc, I think I wont pay that fee, thx!
 

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Frugal Trader is indeed right -- I bought a prepaid Visa a few months ago and had to pay the $4.95 fee, but after that there were little to no fees for general usage.
 
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