Credit Cards

Prepaid Credit Cards (Continuously Updated)

  • Last Updated:
  • Jul 3rd, 2020 4:15 pm
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Newbie
Jan 18, 2019
34 posts
13 upvotes
604reefer wrote: Got banned by PayPower. It was a good ride. RIP.
ATM withdrawals...It took them over a year to ban me nearly maxing my withdraw limits.

As I mentioned in another post, I don’t think anyone has ever been banned for any other reason then ATM withdraw.
Newbie
Jan 18, 2019
34 posts
13 upvotes
Gchase2 wrote: Anyone ever signup for PP after being banned and have no issues ?
No possible anymore from my understanding. There was a time you could play with your middle names etc but apparently not anymore.
Newbie
Jan 8, 2018
98 posts
40 upvotes
whatschurning wrote: No possible anymore from my understanding. There was a time you could play with your middle names etc but apparently not anymore.
Ahh, ok, Thanks !
Member
User avatar
Jul 20, 2017
375 posts
350 upvotes
LOL808 wrote: PP racks in ~$2 for each BP up to $1000 whereas up to $400 per ATM withdrawal.
I'll say ATM is 2x+ more profitable than BP for PP ... Face With Stuck-out Tongue And Tightly-closed Eyes
That's not the whole story.
Paypower has to pay fee's for everything too. ATM provider fee's can be very high, and guaranteed even at the low end vastly higher then EFT (billpay) which is regulated to being near zero fees.

Overall prepaid issuers top earn is:
#1: Mostly interchange fees - aka swipe fees / using the card for purchases. These can very high and the merchants pay these fee's entirely, so it's basically pure profit, some is shared to mastercard / peoples trust, but ultimately it's all the merchant paying that out.
#2: Fee's, as we know they charge for various things. Top earner is probably the activation/monthly fee. Reload fee is a big part too, but the merchants you load at collect all or almost all of that, not PP.

Earn off ATM even at $5/500 a pop is certainly still negative, they have to pay many fee's for that, Mastercards, ATM providers, banks, etc. Some are percentile fee's though, so a small $20 or $40 withdrawl might be a profit for them. Earn off billpay is likely even or near negative at $1000 per pop, but on average they probably make a little bit since people do smaller bill pays at the same fixed fee.

Thus yea people doing very little swipe activity and high ATM pulls is likely losing them money, thus more reason to ban.

Ultimately their terms and conditions state they can ban you for any reason they feel like, and losing money is obviously at top concern and thus reason to ban for any for profit business.
Deal Fanatic
Jan 30, 2012
7233 posts
1668 upvotes
multi city dweller
Eleventeen wrote: That's not the whole story.
Paypower has to pay fee's for everything too. ATM provider fee's can be very high, and guaranteed even at the low end vastly higher then EFT (billpay) which is regulated to being near zero fees.

Overall prepaid issuers top earn is:
#1: Mostly interchange fees - aka swipe fees / using the card for purchases. These can very high and the merchants pay these fee's entirely, so it's basically pure profit, some is shared to mastercard / peoples trust, but ultimately it's all the merchant paying that out.
#2: Fee's, as we know they charge for various things. Top earner is probably the activation/monthly fee. Reload fee is a big part too, but the merchants you load at collect all or almost all of that, not PP.

Earn off ATM even at $5/500 a pop is certainly still negative, they have to pay many fee's for that, Mastercards, ATM providers, banks, etc. Some are percentile fee's though, so a small $20 or $40 withdrawl might be a profit for them. Earn off billpay is likely even or near negative at $1000 per pop, but on average they probably make a little bit since people do smaller bill pays at the same fixed fee.

Thus yea people doing very little swipe activity and high ATM pulls is likely losing them money, thus more reason to ban.

Ultimately their terms and conditions state they can ban you for any reason they feel like, and losing money is obviously at top concern and thus reason to ban for any for profit business.
IIRC, in addition to the $2 fee charged by PP, there was another fee charged by the ATM owner.

Just curious, why would PP even allow ATM withdrawal if they are losing money?
And, even more puzzling is to ban clients who did some ATM withdrawal thus losing even more potential profits.

Why not just ban ATM instead of shutting down their revenue streams?
Deal Addict
Jan 19, 2017
2420 posts
1216 upvotes
LOL808 wrote: IIRC, in addition to the $2 fee charged by PP, there was another fee charged by the ATM owner.

Just curious, why would PP even allow ATM withdrawal if they are losing money?
And, even more puzzling is to ban clients who did some ATM withdrawal thus losing even more potential profits.

Why not just ban ATM instead of shutting down their revenue streams?
Just because PP allows ATM, it doesn’t mean they are happy to do it. They don’t like people to abuse the ATM feature. It is ok to do it occasionally. It is like some stores have very good sale price on certain things at a loss as loss leader. Do you think they want to loose money by selling very low price for those things? So they put a limit on how much you can buy.
Deal Fanatic
Jan 30, 2012
7233 posts
1668 upvotes
multi city dweller
ml88888888 wrote: Just because PP allows ATM, it doesn’t mean they are happy to do it. They don’t like people to abuse the ATM feature. It is ok to do it occasionally. It is like some stores have very good sale price on certain things at a loss as loss leader. Do you think they want to loose money by selling very low price for those things? So they put a limit on how much you can buy.
Oh, I thought the consensus is that you are banned if you use ATM.
So, no one occasional use of ATM will not result in shutdown?

How many times per week is considered occasional use?
Deal Addict
Jan 19, 2017
2420 posts
1216 upvotes
LOL808 wrote: Oh, I thought the consensus is that you are banned if you use ATM.
So, no one occasional use of ATM will not result in shutdown?

How many times per week is considered occasional use?
once a month is ok, not every week. and don't try to reload and use ATM in the same day. They know you do the reload just for the ATM.
Newbie
Dec 11, 2018
35 posts
18 upvotes
Bill payment not available right now. It shows payee no longer available.
Jr. Member
May 24, 2003
119 posts
45 upvotes
Toronto
whatschurning wrote: ATM withdrawals...It took them over a year to ban me nearly maxing my withdraw limits.

As I mentioned in another post, I don’t think anyone has ever been banned for any other reason then ATM withdraw.
I got banned without ever using ATM. Still waiting for the cheque.
Deal Fanatic
Jan 30, 2012
7233 posts
1668 upvotes
multi city dweller
Neo wrote: I got banned without ever using ATM. Still waiting for the cheque.
Well, there goes the ATM theory ... :rolleyes:

Have you contacted them and they have agreed to refund your money?
If not, you may not receive anything.
Jr. Member
May 24, 2003
119 posts
45 upvotes
Toronto
Kiraly wrote: What was your spending like? Did you only do bill pays?
Probably put on 2-3K/month through cobalt mostly. I did use it to load revolut so maybe they counted it as cash withdrawal?
Deal Fanatic
Jan 30, 2012
7233 posts
1668 upvotes
multi city dweller
Neo wrote: Probably put on 2-3K/month through cobalt mostly. I did use it to load revolut so maybe they counted it as cash withdrawal?
Do you mind disclosing the total amount loaded since the beginning?
This could be an interesting DP.
I suspect PP may be banning based on loaded amount vs some unpublished limits.
So far, the DP show this commonality.
Deal Fanatic
User avatar
Jan 9, 2011
8062 posts
8947 upvotes
Vancouver
Neo wrote: Probably put on 2-3K/month through cobalt mostly. I did use it to load revolut so maybe they counted it as cash withdrawal?
Probably. So you never used the card to actually buy anything at the retail level? I always did 1 or 2 piddly little transactions per month, usually for parking. Been ok so far.

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