3 ms·

What's the reasoning behind rejecting prepaid debit cards, if there are sufficient funds available?

• s09dfhks 7y ago
  Maybe the cards are being loaded with illicitly acquired funds
  • dvtrn 7y ago
    That's a valid risk, but then why single out prepaid cards for this given the rampancy of credit card fraud and theft? Edit: An interesting answer elsewhere in the thread: https://news.ycombinator.com/item?id=20465459 https://news.ycombinator.com/item?id=20465459
• ceejayoz 7y ago
  Credit cards are sometimes used as a proxy for identity (via billing address) or age verification (most under-13s don't have ready access to one).
• cortesoft 7y ago
  Sometimes credit cards are used kind of like collateral... when you stay at a hotel, for example... you give the hotel a credit card for 'incidentals', and it is basically being used as a guarantee that you will pay for things you are going to use. Car rentals are the same. In a sense, it is your credit card limit is basically your credit card company saying "yeah, this person is good for x amount of money". That isn't much for a prepaid card.
• swebs 7y ago
  Because then they could no longer collect money from people that forget that they're being automatically charged every month.