Prepaid Visa cards are made of plastic that is used to make a purchase. It is the most ideal choice for those who don’t like to carry their wallets here and there, are trying to budget, and it is also a great option for gifts. Also, the other advantages are they help you set your financial boundaries so that you must not get trapped in the debt cycle. They are safe and seem to be way classier than carrying and using cash. It is technically a debit card that gets issued through the financial institution or credit card company-Visa, MasterCard and they are usually deposited with a fixed amount of funds. This deposited amount can be utilized easily in person or online while purchasing items or pay bills. They are also used to withdraw cash from the ATM.
Prepaid credit cards have a number with an expiry date printed on the front or back, so yes, the card expires. The amount that gets loaded in the card is the credit limit of the prepaid card. Once all the balance is used up the card is worthless till the time more funds are not deposited for the card. Prepaid debit cards can be used repeatedly till the time the holder keeps adding funds to the card periodically. It usually charges a monthly fee for the service. It works like a credit card, as it asks for an application, a credit check, and approval from the issuer, but it will not have an impact on the credit score. A prepaid credit card works just like a normal credit card.
Though prepaid cards have many advantages and benefits, as we all know, one will encounter some issues with the prepaid visa card. It is just not limited to fees and expiry dates that just contribute to many gift card funds going unused every year. But one can also face issues related to transactions, such as the card getting declined when they try to use the funds. Here are the common reasons why your prepaid card got declined.
Transactions Decline: Preauthorization charges, these charges are levied to safeguard restaurants, bars, and even hotels from fraud and lack of funds. But they tend to hurt patrons who attempt to use prepaid gift cards. These charges take control over the value of the commodities or the services are rendered, and then a second charge for the similar amount and the gratuity. When the duplicate charges fall, it sets a limitation for the card users if they do not contain enough on the card to cover charges temporarily.
Split payments: There are many online vendors, like airlines, who don’t grant the facility for split payments. And this is the reason why your prepaid gift card funds get declined and subsequently remain unused.
Card Issue requirements: Some prepaid gift cards come with zip code, PIN, or CVV requirements, that vendor is not able to recognize. If the vendor does not prompt for all this information while the transaction is going on, the card would get a decline, no matter the number of amounts available.
Places, where you might face issues: Some retailers, except restaurants and airlines, might showcase the problems that include: Apple, Uber, Amazon, CVS.
What do you do if the gift card does not function properly?
- Show the card to the cashier.
- Do inquire and ask about the error.
- Go to the Manager.
- Check the PIN.
- Ensure that the gift card is activated.
- Don’t forget to ask about the balance and transactions.
- Contact Customer Service.
- Contact the Card Issuer.