Paypal

Paypal Accepts Prepaid Cards?

Let me start this post with an important point. I do not recommend anything in here as a regular manufactured spending strategy, Paypal has a big history of shutting people down so don’t mess with them. I also did a search of our forum, don’t think I’m killing any deals.

When I was signing up for FT4RL2 today, I noticed something that I hadn’t noticed before. I’m not sure this is a Tagging Miles WTLW kind of situation, but I don’t remember ever reading about this before, so I thought I’d share.

Adding a prepaid card to Paypal seems pretty straightforward - how did I never see this before?
Adding a prepaid card to Paypal seems pretty straightforward – how did I never see this before?

As I was checking out, I saw a little note that said “Paypal now accepts prepaid cards”. Wut? So I did some digging, and Paypal has indeed been taking prepaid cards since November of last year. Like I said, this is NOT good for MS, but I think it is useful if you have some leftover money you need to liquidate off a prepaid card for a legitimate purpose.

Adding a prepaid card to your wallet is simple – you just add it like any other credit/debit card – it’s just a separate tab. What I did notice was that I wasn’t allowed to use my card when my Paypal balance could cover the cost of what I was paying for. But when I increased the cost to something more than what I have in my account, it allows me to use my prepaid card to cover the rest.

At the very least I think you can use your prepaid card to cover anything above your Paypal balance
At the very least I think you can use your prepaid card to cover anything above your Paypal balance

So is this useful? I think it is – I sometimes check out using Paypal and if I need to liquidate a couple of bucks remaining on a prepaid card I think this would be a nice and easy way to do it. My plan going forward is to use Paypal to liquidate the 10 or 15 bucks I sometimes have leftover on a card on a legitimate purchase. AKA, how I think Paypal intends prepaid cards to be used. Still, I literally just saw this today, so I’d love to hear if people have any experience!

 

Joe
Just an average joe trying to fly his family for less
http://www.asthejoeflies@gmail.com

9 thoughts on “Paypal Accepts Prepaid Cards?

        1. No offense taken, my comment was more of a joke. 😛 You’re definitely right, it doesn’t contribute much. I just had no idea, pinged another friend in the game who had no idea, so thought maybe someone else might benefit. But maybe my friend and I are just kinda out of the loop, haha.

  1. Jonathan is correct that it’s “mostly” useless given you can only make payments to merchants, but there are a few limited cases where it is useful:
    – Using Kiva as you can only go through Paypal
    – Buying something you may return later – If you pay with a prepaid card and return something later, the money will go back to your prepaid card meaning you need to keep that card around – If you pay with Paypal, the money goes back to your Paypal account.

    That said, if you do switch prepaid cards regularly, you’ll eventually have a hold on your account and they’ll ask you to try to not use so many cards as they have to go through a card verification process on their end each time. I have no issue with that so that’s fine – I mainly use my US Bank FlexPerks for Kiva anyway.

  2. Why would anyone ever carry a PP balance? Any balances get immediately transferred to my bank account – why give PP the float?

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