4 ms·

A merchant can choose to decline prepaid debit cards, e.g. here's how the braintree api exposes it[0]. I assume that's what this shows up as. [0] https://devel

by dcosson 11y ago

A merchant can choose to decline prepaid debit cards, e.g. here's how the braintree api exposes it[0]. I assume that's what this shows up as. [0] https://developers.braintreepayments.com/reference/response/credit-card/ruby#prepaid https://developers.braintreepayments.com/reference/response/...

akhatri_aus 11y ago
A prepaid debit card is different from a plain old 'debit card'. The debit card is accepted everywhere a credit card is (as long as it says Visa or Mastercard on it). In fact a few places accept debit cards but do not accept credit cards as fees with debit cards can be lower. There's just a handful of subscription merchants that don't take prepaid debit cards.
- URSpider94 11y ago
  The problem comes with things like hotels and car rentals. For example, I'm staying in a hotel tonight, and they just authorized my credit card for $200 more than the nightly rate to cover incidentals (the notice came to my iPhone). If that were a debit card (or Privacy), they would have to pull the full amount from my checking account right away, and it could be days or weeks until they put it back. Since it's a credit card, they'll release the hold when the final bill comes through in a day or two, and I'll never know the difference.
  - akhatri_aus 11y ago
    You can put a hold on a debit card too without pulling the entire amount (they run an authorisation and release it immediately) I've used it to rent cars and hotel rooms, they do a check but the amount isn't 'blocked' off. In effect your statement looks just like a credit card.. There's absolutely no difference except with a credit card it's a borrowed balance. I'm not too aware of how cards are in the US but generally in Europe & Australia (afaik) they're this way. Do cheque cards have mastercard/visa on them in the US (What about maestro/electron)?
    - URSpider94 11y ago
      US merchants don't do this. Most of the ones who take a deposit (hotels, car rental) have signs at the counter warning that they may put a substantial hold on your cash if you use a debit card, which won't be released for quite a while. You are right -- if the card is bank-issued, then they can simply place a hold and release it without money flowing. With Privacy, it would seem they will need to actually pull the cash to be able to ensure that its there when the final charge comes through. Curious to see how this plays out.
      - fluxquanta 11y ago
        >US merchants don't do this. Most of the ones who take a deposit (hotels, car rental) have signs at the counter warning that they may put a substantial hold on your cash if you use a debit card, which won't be released for quite a while. My company used to send us on work related trips which were paid for in advance, but relied on us to provide our own cards at the hotels for incidentals. After a few (presumably less financially stable) employees used debit cards with low balances to check into hotels (effectively leaving them with no money during their stay), this policy changed so now the company credit card is used for hotel check-ins. I personally hate the new policy because I have good credit and like getting room service, and for some reason I find it kind of emasculating that I'm not allowed to use my own card.

by dcosson 11y ago

akhatri_aus 11y ago

A prepaid debit card is different from a plain old 'debit card'. The debit card is accepted everywhere a credit card is (as long as it says Visa or Mastercard on it). In fact a few places accept debit cards but do not accept credit cards as fees with debit cards can be lower. There's just a handful of subscription merchants that don't take prepaid debit cards.

URSpider94 11y ago
The problem comes with things like hotels and car rentals. For example, I'm staying in a hotel tonight, and they just authorized my credit card for $200 more than the nightly rate to cover incidentals (the notice came to my iPhone). If that were a debit card (or Privacy), they would have to pull the full amount from my checking account right away, and it could be days or weeks until they put it back. Since it's a credit card, they'll release the hold when the final bill comes through in a day or two, and I'll never know the difference.
- akhatri_aus 11y ago
  You can put a hold on a debit card too without pulling the entire amount (they run an authorisation and release it immediately) I've used it to rent cars and hotel rooms, they do a check but the amount isn't 'blocked' off. In effect your statement looks just like a credit card.. There's absolutely no difference except with a credit card it's a borrowed balance. I'm not too aware of how cards are in the US but generally in Europe & Australia (afaik) they're this way. Do cheque cards have mastercard/visa on them in the US (What about maestro/electron)?
  - URSpider94 11y ago
    US merchants don't do this. Most of the ones who take a deposit (hotels, car rental) have signs at the counter warning that they may put a substantial hold on your cash if you use a debit card, which won't be released for quite a while. You are right -- if the card is bank-issued, then they can simply place a hold and release it without money flowing. With Privacy, it would seem they will need to actually pull the cash to be able to ensure that its there when the final charge comes through. Curious to see how this plays out.
    - fluxquanta 11y ago
      >US merchants don't do this. Most of the ones who take a deposit (hotels, car rental) have signs at the counter warning that they may put a substantial hold on your cash if you use a debit card, which won't be released for quite a while. My company used to send us on work related trips which were paid for in advance, but relied on us to provide our own cards at the hotels for incidentals. After a few (presumably less financially stable) employees used debit cards with low balances to check into hotels (effectively leaving them with no money during their stay), this policy changed so now the company credit card is used for hotel check-ins. I personally hate the new policy because I have good credit and like getting room service, and for some reason I find it kind of emasculating that I'm not allowed to use my own card.