to think that this is a ridiculous system?

[Bogeyface]

I use a pre-pay credit card for all online transactions after being ripped off once with card cloning. I only put money on there when I need it, and use it straight away. I also only load in cash as I dont trust putting in my bank or debit card details (rather defeats the point if I do that!)

So, I am paying for my car tax (a day late and because its 1 April it cost me £5 more, but thats another rant ) and have £1.36 more than I need available on the card.

As I use it regularly I pay a £4.99 monthly fee so all transactions are free, instead of paying £1.50 per transaction. But my card kept getting rejected, and it turns out that even though my transactions are free, the system takes the £1.50 anyway and then recredits it after the transaction has completed. I can only load a minimum of £10 cash, and therefore would have to put £10 cash on for the sake of 11p that I dont even have to pay!

I tried to explain to the card company that I didnt see why I should have to have the money available to pay a fee that I dont even owe and to have to pay in £10 to do that is ridiculous. I spent £2.50 on a phone call before they would credit my account with 11p themselves, and then "reclaim" it when I next make a deposit. I pointed out that they could reclaim it as soon as the transaction goes through and they recredit the £1.50 fee but apparantly they couldnt do that!

So, AIBU or is this a completely stupid system that means I will always have £1.50 in there even when I want to clear the account to close it (which I now do!)?

[Bogeyface]

But a) I dont have £10 in cash and the cash machine is empty (again)

and b) I dont want £10 tied up on a card when I dont need to!

[caughtinanet]

It does seem that you're tying yourself in knots to avaoid a very unlikely situation. It must be awful to have had your card cloned but its very unlikely to happen again esp. on a government website to to pay car tax. If you have the cash could you not just go to the post office and renew it ?

I really don't like the prepaid cards - as you're finding out you end up being charged for the privilige of spending your own money.

[Bogeyface]

Its not being charged I object to, they are providing a service after all, its needing to have the money available for charges that I am not paying because their system doesnt work!

Normally it is fine. i want to buy something online, I stick the money on the card at the papypoint shop down the road and pay. Job done! I have never been this close to £0 on it though, so havent come across this issue before.

[CharlieCoCo]

whats the difference between a debit card and a pre-paid credit card? i have never had a pp cc before, are they beneficial? i have 2 debit cards-one with my wages and one i dont really use much but have like a tenner on it for 'emergancies' and i have 2 credit cards which i use if i have to then pay off when i get paid next.

[Bogeyface]

here you go

I got mine because my card got cloned to the tune of several hundred and a week later my dads got done for almost £20,000 (didnt know his credit limit was so high!) and the hassle we had sorting it out was unreal.

I know that they charge (£4.99 a month and no transactions fees, plus 3% whenever you put money on it) but to me it is worth it. I dont mind paying that because as i said, they are providing a service and it means that if my card was cloned there would be less than a fiver at any one time on it as I put the money on and use it straight away for whatever I am buying.

[caughtinanet]

Interesting link but it doesn't change my view that they are really bad value for people who can get a credit/debit card which you have and I see that you don't get the protection you get with a cerdit card either.

I do know people who've had their cards cloned but none that have had any problems in getting it sorted - maybe you credit card provider is the problem rather than the risks of online shopping.