Online Virtual credit cards

rundle

Anyone here ever used them?

I am looking at setting one up with an outfit with Entropay, but honestly have no idea who these folks are.

They ask for documents as proof of identity before activating it, but of course then you've sent your ID docs off into the ether...

If you have used one of these services, who? And happy with them? or Not??

inkyfingers

No idea, but I would think that the FSA is the best place to start to make sure they are legit.

MattC59

I'm not sure of the value of this.
Surely in order to use a virtual credit card, you would have to log in and enter a bunch of details confirming that it is you trying to use the virtual card. You can't use it on the high street and (I would think) there will be a lot of your personal info stored somewhere on line.
To use a real card you have to enter a bunch of details to use it. You can use it on the high street and there is less info stored to go missing.

Personally, I'd wait until the virtual card an established method of payment before I used it.

That said, Entropay is in association with Visa, so you would assume that they have some idea what they're doing, and I'm sure most of us have used Paypal; what's that if not an on line credit card ?

schweiz

just had a quick look on the website and it seems they're not actually credit cards, they're debit cards.

You have to transfer money to them and you get a card number you can use as a 'credit card' when doing online shopping hence why there's no need to run a credit check on you, you're only spending your own money, not theirs.

schweiz

Reading some more, basically it seems you use your Switch/Maestro/VISA/MC card to load money on to Entropay. They take 4.95% commission for, so basically everything you buy online costs you that much more. I don't see the point of using a VISA/MC card to top up your entropay acount, you might as well just use the credit card itself. Also, if you can use your debit card to pay online then use it as that would save you the 5% you would give to Entropay.

The only use for this is if you can't get a credit card due to your age or credit rating and you have to have a credit card number to pay online.

IIRC some banks do these kind of pre-paid credit cards for people who would like a CC number. They were aimed at students a few years back as a way parents could give their kids a CC without the risk of running up debt. I don't know what the banks charged, if anything, but it may be worth giving them a call. You would also get a physical CC, so you could use it in high street shops too, but effecetively it would just be like a debit card.

schweiz

some other alternatives, but TBH they all look expensive.

http://www.money.co.uk/prepaid-cards.htm

spen666

The only advantage I can see to this card is it prevents you from having your credit card maxed out by some unscrupulous fraudster. The max sum they could take is the amount pre loaded on the card

schweiz

spen666 wrote:

The only advantage I can see to this card is it prevents you from having your credit card maxed out by some unscrupulous fraudster. The max sum they could take is the amount pre loaded on the card

I've not read any further into the details of this card but as there is no actual credit with these cards, are you still protected by consumer credit laws? After the many concert ticket/holiday/on-line scams we often hear how people who purchased with credit cards are covered but those who bought with debit cards may not be covered.

Le Commentateur

schweiz wrote:

Reading some more, basically it seems you use your Switch/Maestro/VISA/MC card to load money on to Entropay. They take 4.95% commission for, so basically everything you buy online costs you that much more. I don't see the point of using a VISA/MC card to top up your entropay acount, you might as well just use the credit card itself. Also, if you can use your debit card to pay online then use it as that would save you the 5% you would give to Entropay.

I would never use a debit card to purchase anything from a web site or over the phone, as it is direct line to your money. A credit card gives you a period of protection if something goes wrong (such as a dispute or some third party gets hold of your card details). This is because the credit card company is acting as your agent in the process, paying for the goods up front on your behalf, whereas with a debit card you are on your own (or at least that's how the banks like to spin it).

It would be interesting to find out if this online card thing has similar levels of protection as a 'traditional' credit card, or whether it is a payment mechanism that allows the credit comapany to shuffle off the responsibilities of consumer credit law.

rundle

There is another use for these cards.

If you want to "spoof" an address and currency that is different than your home one.

ie - you want to subscribe to Netflix US and don't live in the US.

spen666

schweiz wrote:

spen666 wrote:

The only advantage I can see to this card is it prevents you from having your credit card maxed out by some unscrupulous fraudster. The max sum they could take is the amount pre loaded on the card

I've not read any further into the details of this card but as there is no actual credit with these cards, are you still protected by consumer credit laws? After the many concert ticket/holiday/on-line scams we often hear how people who purchased with credit cards are covered but those who bought with debit cards may not be covered.

It doesn't matter really as if you have only loaded £20 on the card, then that is all a thief could steal. Use a credit card and he can run up a bill of thousands of pounds

The only issue would come if you loaded up card with lots of money- but why do that if you already have a credit card

meenaghman

Also I believe some of these sites can spoof the pre pay debit card that Ryanair and other low cost airlines don't charge for. It all depends on how much your flight costs > 100 pounds and the 5 pound charge is better than the virtual card.

schweiz

spen666 wrote:

schweiz wrote:

spen666 wrote:

The only advantage I can see to this card is it prevents you from having your credit card maxed out by some unscrupulous fraudster. The max sum they could take is the amount pre loaded on the card

I've not read any further into the details of this card but as there is no actual credit with these cards, are you still protected by consumer credit laws? After the many concert ticket/holiday/on-line scams we often hear how people who purchased with credit cards are covered but those who bought with debit cards may not be covered.

It doesn't matter really as if you have only loaded £20 on the card, then that is all a thief could steal. Use a credit card and he can run up a bill of thousands of pounds

The only issue would come if you loaded up card with lots of money- but why do that if you already have a credit card

That wasn't my point. My question was if I'd bought some concert tickets from on online vendor with a pre-paid credit card and the agent selling them turned out to be a scammer and I didn't receive the tickets, could I still use consumer credit laws to obtain a refund like you can with a real credit card, or would I have the same protection as a debit card (i.e. up to the good will of the bank) due to the fact that a pre-paid credit card doesn't actually provide you with credit i.e. you don't have to sign a credit agreement to get one, it's essentially a debit card with a CC number rather than a Switch/Maestro number.

dilemna

schweiz wrote:

spen666 wrote:

schweiz wrote:

spen666 wrote:

The only advantage I can see to this card is it prevents you from having your credit card maxed out by some unscrupulous fraudster. The max sum they could take is the amount pre loaded on the card

I've not read any further into the details of this card but as there is no actual credit with these cards, are you still protected by consumer credit laws? After the many concert ticket/holiday/on-line scams we often hear how people who purchased with credit cards are covered but those who bought with debit cards may not be covered.

It doesn't matter really as if you have only loaded £20 on the card, then that is all a thief could steal. Use a credit card and he can run up a bill of thousands of pounds

The only issue would come if you loaded up card with lots of money- but why do that if you already have a credit card

That wasn't my point. My question was if I'd bought some concert tickets from on online vendor with a pre-paid credit card and the agent selling them turned out to be a scammer and I didn't receive the tickets, could I still use consumer credit laws to obtain a refund like you can with a real credit card, or would I have the same protection as a debit card (i.e. up to the good will of the bank) due to the fact that a pre-paid credit card doesn't actually provide you with credit i.e. you don't have to sign a credit agreement to get one, it's essentially a debit card with a CC number rather than a Switch/Maestro number.

I think you are getting confused. A credit card will always come under the Consumer Credit Act. A debit card does not. The issue of pre-paid is an irrelevance.

If you pay using a pre-paid "credit card" which is essentially a debit card and things go tits up you will likley have little come back. It's like handing the fraudsters cash. No bank is going to re-imburse you as they don't have to. You will have to pursue the seller on your own to get your money back.

As some said above the Credit Card provider is acting as an agent there is a tripartate contract between you, card provider and seller. You can enforce your statutory rights against your card provider if you are unable to against the seller which may very well be the case if they are fraudsters. You cannot do this with a debit card or pre-payment card.

I would AVOID this scam unless you think the site you are purchasing from is indeed trust worthy and genuine, in which case use your actual credit card.

schweiz

dilemna wrote:

schweiz wrote:

spen666 wrote:

schweiz wrote:

spen666 wrote:

The only advantage I can see to this card is it prevents you from having your credit card maxed out by some unscrupulous fraudster. The max sum they could take is the amount pre loaded on the card

I've not read any further into the details of this card but as there is no actual credit with these cards, are you still protected by consumer credit laws? After the many concert ticket/holiday/on-line scams we often hear how people who purchased with credit cards are covered but those who bought with debit cards may not be covered.

It doesn't matter really as if you have only loaded £20 on the card, then that is all a thief could steal. Use a credit card and he can run up a bill of thousands of pounds

The only issue would come if you loaded up card with lots of money- but why do that if you already have a credit card

That wasn't my point. My question was if I'd bought some concert tickets from on online vendor with a pre-paid credit card and the agent selling them turned out to be a scammer and I didn't receive the tickets, could I still use consumer credit laws to obtain a refund like you can with a real credit card, or would I have the same protection as a debit card (i.e. up to the good will of the bank) due to the fact that a pre-paid credit card doesn't actually provide you with credit i.e. you don't have to sign a credit agreement to get one, it's essentially a debit card with a CC number rather than a Switch/Maestro number.

I think you are getting confused. A credit card will always come under the Consumer Credit Act. A debit card does not. The issue of pre-paid is an irrelevance.

If you pay using a pre-paid "credit card" which is essentially a debit card and things go tits up you will likley have little come back. It's like handing the fraudsters cash. No bank is going to re-imburse you as they don't have to. You will have to pursue the seller on your own to get your money back.

As some said above the Credit Card provider is acting as an agent there is a tripartate contract between you, card provider and seller. There will also be a cooling off period where you can change your mind. You can enforce your statutory rights against your card provider if you are unable to against the seller which may very well be the se case if they are fraudsters.

I would AVOID unless you think the site you are purchasing from is indeed trust worthy and genuine, in which case use your actual credit card.

I'm not confused at all.

Even though they call it a credit card, there is no credit provided and therefore I believe there is no need for the issuer to adhere to the law as written in the consumer credit act.

The answer to my question is here

http://www.what-prepaid-card.co.uk/feat ... ction.html

and you are not covered!

The CCA covers everyone with a credit card, but given that prepaid cards do not fall under the CCA, as the bank is not lending money, you are not covered.

ZacColbert

I've used a prepaid credit card for a while now and haven't looked back. Although Schweiz is right, they are not covered, prepaid credit cards from APS come with online payment protection to all your transactions over the internet if your items never arrive or turn up broken. A few other intersting features, too!

guinea

I hate our system of credit cards and plastic money. We're all poorer because if it.

People think credit cards are funded from your interest payments. They're not. Even if you paid off every penny every month they'd still make millions. They take a percentage from every transaction as a handling fee. Some, like Amex, are so high many places don't even accept them.

Why is that a problem? The shops are not allowed to advertise a diferent rate to cash or debit card users. Not in law, but by VISA and Mastercard. They'll remove the service effectively putting the vendor out of business. Because of this everyone has to pay an extra few % on every single purchase you make whether you use cash or a card.

The plastic money business is a closed shop cartel which screws over every one in the country.

I resent the fact that I had to get a credit card recently. I couldn't hire a car or check into a hotel without one. They wouldn't even let me prepay in cash. It's a disgrace that our society forces this debt unpon its members to procure normal services.

When you're in the supermarket/petrol station/PC World you should have the choice to pay the lower cash price or the higher credit card price. The cash buyers should not be subsidising the credit card companies.

The little insurance benefit you think you get from credit cards are included in the purchase price of everything. You're still paying. It's just not transparent.

ZacColbert

Here's the link to My Cash Plus's prepaid credit cards http://mycashplus.co.uk/default.aspx

Anonymous

Paypal ?