Paypal and prepaid card fund transfers

People sometimes ask, “Can I transfer funds in my Paypal account to a prepaid card?”

The answer is, maybe, but you are breaking Paypal’s third party rules for transferring Paypal balances to bank accounts. A lot of freelancers and small businesses such as people selling things on Ebay use Paypal to get paid. In this way, they build up a positive balance of funds in their Paypal account. If they buy things using paypal, those purchases are credited against the Paypal savings balance. But if you just want to get your money out of your Paypal account, how do you do it? Paypal has made it very easy by letting you transfer funds from your Paypal account to a savings or checking account. Now, you can go ahead and fill out a prepaid account number as if it were bank account, and it might work once or twice, but eventually Paypal will spot it as a breach of their user agreement and stop any further transfers.

What you CAN do is tie your MiCash prepaid card to Paypal for online purchases, just like you can do with credit cards or checkcards. In other words, when you are online and their is the “Pay with Paypal” option, Paypal takes care of the electronic transaction, using your prepaid card number. So long as you have balance of funds on your card to cover the transaction, it will go through and the online merchant will get confirmation of that fact. If you don’t have the funds, the good news is that you can’t get overdrawn or be hit with overdraft fees, the purchase will simply be declined for insufficient funds. The solution? Put more money on your card! You can also do that through direct deposit of funds to your prepaid card.

Can you get a prepaid card without a social security number (aka SSN)?  For reloadable prepaid cards with the Visa or MasterCard logo on them, the answer is no. Why not? After the attack of 9/11, the government passed the US Patriot Act. All prepaid card companies now follow the rules under the act, which require them to verify the identity of the prepaid card applicant. This is to protect Americans from future terrorists trying to remain anonymous with false identities and credit cards or prepaid cards that are untraceable to them. Hence, this is a good thing.

As authorized by the Act, The Department of the Treasury, the Financial Crimes Enforcement Network, and the seven federal financial regulators issued final rules that require certain financial institutions to establish procedures to verify the identity of new accountholders. Not only does this protect against terrorist financing, but also money laundering and identity theft.

However, you can get a prepaid gift card without a social security number. Perhaps the law needs to be stricter there as well, to prevent terrorists from buying equipment at Best Buy or Home Depot.

What do prepaid card companies and credit card companies have to do under the Patriot Act? 1) verify the identity of anyone trying to open an account. 2) keep cardholder identity information on file. 3) make sure the applicant does not appear on a list of known or suspected terrorists or terrorist organizations.

Financial institutions now gather such standard information as a customer’s name, address, date of birth and a taxpayer identification number (for U.S. persons, typically a social security number and for non-U.S. persons, a similar number from a government-issued document).

How to Get a Fake Social Security Number?

Believe it or not, a lot of people Google this question every day. Maybe they are illegal aliens. While it is possible, it is against the law, and it is getting harder and harder to do.  Under the Patriot Act, financial institutions not only ask for an applicant’s social security number, but they also to take reasonable steps to make sure that applicants are who they say they are. Putting in a false ID when applying for a card just won’t work.

You have probably heard of a reloadable prepaid debit card also called a prepaid card or prepaid credit card. These cards are typically MasterCard, Visa, Discover or American Express branded cards that you can load or deposit money onto and then can spend the amount that is on the card.

In this economy, many people are increasingly seeking better ways to manage their money and many have found that a prepaid debit card is a good alternative. While a prepaid debit card may not be the solution for everyone, there are many people who find that having a prepaid card saves them money and provides a convenience.

Why Would Someone Want a Prepaid Card?

It is easy to get a prepaid card. You don’t have to have good credit or even any credit history, and you don’t need a bank account. You simply need to be a resident of the US, provide personal information to pass a mandatory identity check, and you can get a card. In this respect, no one is denied a card due to their credit rating or past banking history.

A Cheaper Alternative

Prepaid debit cards can be cheaper alternative for many individuals currently cashing their check and transacting in cash. Many check cashers charge anywhere from 2-5% of the amount of the check to cash a check. And, if someone doesn’t have a bank account, checks, or a payment card, it is not only inconvenient to try to pay bills, but also expensive. Paying for a cashiers check or money order to pay each bill can quickly add up.

Less Risk of Overspending

For parents, a prepaid card may be the ideal solution for their college-bound kid. There is no risk of overspending since it is very difficult to put the card into a negative balance, and there is no risk of creating a bad credit history. Plus, a prepaid card can be a great way to teach budgeting. After all, how many of us are still paying off the credit card debt that we quickly incurred during our college years?

Budgeting Tool

Some people like having a prepaid card to use as a way to budget for non-essential items. Saving up for a vacation or that coveted flat screen TV? An easy way is to have a portion of your paycheck put on the card each pay period, and then you are able to use the funds once you have enough saved. For vacationers, a prepaid card may even be seen as a safer way to travel with money. Travelers can access cash at millions of ATMs worldwide, the card may be used anywhere the brand (MasterCard, Visa, Discover, American Express, etc.) is accepted, and if the card is lost or stolen, the traveler’s liability is reduced to what is on the card versus what is in your bank account. Plus, the cardholder is covered by MasterCard liability protection and lost cards can quickly be replaced.

While prepaid cards are not for everyone and there are fees associated with use of the card, for many, they are a good solution. MiCash offers a low cost prepaid MasterCard to meet this need. MiCash prepaid cards are a good value and provide the convenience, cost savings and safety that many are looking for in a card solution. MiCash is continually looking for ways to provide value to our cardholders and takes pride in providing excellent customer service. If you think a prepaid card might be the answer for you, please consider our prepaid card.

Interchange fees and you.

“Interchange” is the fee that the banks issuing debit and credit cards charge retailers for every debit and credit card purchase. Retailers factor these fees into the price of their products and services. Because the interchange fees have been typically lower for debit cards versus credit cards, many retailers prefer when people use debit cards. However, interchange fees even for debit cards have been steadily rising in recent years, so that depending on the amount of the transaction, the interchange might be has high as 2% of the transaction cost.

The good news for consumers is that several factors are now at play that will hopefully see these fees come down, especially for debit card users. The Dodd-Frank financial reform law has limited the interchange fee. Two massive antitrust class actions have been filed against card companies. And finally a Justice Department antitrust investigation seems to be drawing to a close and may result in the government filing a civil antitrust lawsuit. Industry analysts say that Visa and MasterCard seem to be working toward a consent decree or settlement in which they agree to amend their business practices.

Many merchants would like to charge different prices based on what card a consumer pulls out of his or her wallet.  For example, a merchant could tack on 50 cents on a $40 purchase is a consumer wanted to use a credit card with a high interchange fee versus a debit card with a much lower interchange fee. This would encourage more consumers to use debit cards over credit cards. However, Visa and MasterCard guidelines currently prevent merchants from favoring one card over the other in this way. Depending on the outcome of the class action lawsuits and the Department of Justice’s actions, Visa and MasterCard may have no choice but to allow merchants to begin favoring cards with the lowest interchange fees.

Even now, debit card holders have the choice of signing for a transaction so that it goes through the credit card network or typing their personal identification(PIN)  number at the point of transaction so it goes over the debit card network. Because debit card transactions have the lower interchange fee, this is what merchants prefer, and some of them will even point you in that direction. Why should you care?

Some prepaid card companies charge fees for signature transactions and charge no fee or a smaller fee for a PIN transaction. Also, choosing credit drives up costs for retailers. They have to pay an extra 2% on everything they sell (plus taxes). What they are likely to do is pass this cost along to you the consumer by raising the price on what they sell. Otherwise they would earn less in profits. If everybody chose debit, goods and services would likely be less expensive.

Looking for a  prepaid debit card at Giant Foods or Martin’s Grocery? Wondering of Giant carries Greendot MoneyPaks to reload your prepaid card whether Visa® or prepaid MasterCard®? The answer us that you can find Green Dot® MoneyPaks at any Giant grocery store you visit.

About Giant Foods Grocery Store

If you live in the MidAtlantic states of Maryland, Pennsylvania, West Virginia or Viriginia, chances are you have shopped at Giant Foods or Martins. Perhaps now that you know about prepaid MasterCard from MiCash you are wondering if you should try and pick up a prepaid card at the store, or get one online. The advantage of getting it online is that you can research the card ahead of time. It costs nothing to apply, and you can check your balance online at anytime. GreenDot MoneyPaks at Giant Foods or Martin’s Grocery are always at the front of the store on a display with gift cards, phone cards, and other types of prepaid cards.

Giant is actually owned by Ahold, a huge European grocery store chain that has purchased various grocery store chains in the United States.

You can watch a video of how to load money by clicking LOAD MONEY in the navigation bar above.

Safeway sells prepaid cards, but unlike applying for a MiCash card online, you have to take the extra steps of purchasing the card there at the store and then calling the card company to activate it. There is no charge to apply for a MiCash MasterCard. At Safeway, look near the checkout lines for an endcap display where the cards are hanging. It is sometimes hard to find the prepaid cards because the hanging displays look just like the displays for gift cards and prepaid phone cards. Even those cards can sometime carry the Visa or MasterCard brand mark, or logo. So look for the phrase “prepaid card” on the packaging.

What I have found about these in-store cards is that they are not very attractive for the most part. It might not be something you think much about standing in the store, but later when you must pull the card out to hand to a waitress or cashier you will think about the attractiveness of your card. Also, obviously, it is tough to research all of the terms and conditions for these cards as compared to reviewing the full information online as you can do on this website.

Also at Safeway are Greendot MoneyPaks which you use to load prepaid cards with cash. Greendot MoneyPaks are a convenient way to transfer money onto a prepaid cards. They are widely available at grocery stores, discount stores, and convenience stores nationwide.

Safeway grocery stores are among the top 10 largest retailers.

Lost Wallet

If you ever lose your prepaid debit card or bank checkcard, you should contact the company that issued your card and services your account as soon as you realize it is missing. The good news is that if you report it lost or stolen within two business days, the most you will be liable for is $50 should it fall into the wrong hands and be misused for unauthorized purchases or cash withdrawals.
According to the Federal Trade Commission, Once you’ve reported the loss of your ATM or debit card, you cannot be held liable for additional unauthorized transfers that occur after that time.

The bad news is that if you don’t report the loss within two business days after you find out that you are missing your card, you could lose up to $500 should a card thief take out that much money from your account by using your card for unauthorized purchases. You also risk unlimited loss if you fail to report an unauthorized transfer within 60 days after your card statement containing unauthorized use is mailed to you.

Some people make the mistake of thinking they have just misplaced their card, particularly if they can’t find their wallet or purse. You may think it is somewhere in your home, hidden under a coat in the closet, let’s say, but it turns out that your wallet or purse was lifted from you in a public place when you were not aware. It is better to be safe than sorry. After a thorough search of your home and car, if you still can’t find it, call your card issuer.

If you have a MiCash Prepaid MasterCard, a replacement card will be sent to you as soon as you report your card missing, and your old card will be “frozen” to prevent misuse.
ditional unauthorized transfers that occur after that time.

Greendot Available at CVS

If you are looking for a fast and easy way to load money on your MiCash debit MasterCard using Greendot MoneyPaks look no farther than your local CVS pharmacy. There are more than 7,000 CVS locations nationwide. This makes it the largest pharmacy chain in the country. CVS Facts:

• Headquarters located in Woonsocket, R.I.
• More than $87 billion in annual revenue
• Largest employer of Pharmacists and Nurse Practitioners
• No. 1 in Store Count – more than 7,000 CVS/pharmacy stores in 43 states (includes Longs Drugs in Hawaii)
• 4+ million customers per day

All you have to do is walk into the store and find the gift card and prepaid card rack on an end-cap of one of the aisles near the check out register. You can’t miss it. Look for the Greendot package which not surprisingly is green! Take the Moneypak to the register, hand the cashier your cash, and minus the cost of the Moneypak (i.e., you will have converted your cash to the MoneyPak. Now, you can’t use a MoneyPak for direct purchases of products. Rather it is just a convenient way to transfer money to a prepaid card. So the next step is to call the Greendot customer service number printed on the MoneyPak and over the phone provide the unique Greendot identifier number and your prepaid card account number. This 16-digit number is embossed on the front of your prepaid card.  Greendot will be able to see how much money you just put on your card, and transfer the entire balance to your prepaid card. After you have depleted the one-time-use MoneyPak, you can toss it in the nearest trash can. It has served its purpose.

According to Mintel, a leading market research company, one factor in the growing popularity of prepaid cards is the fallout from discontent with traditional checking accounts. Either people are finding it harder to get a free and hassle-free checking account, or they don’t like the fees for such events as unintentional overdrafts or low balances.

In Mintel’s recent survey, 19% of respondents overall stated that they would be interested in using prepaid cards to pay bills, rather than a banking account. More importantly, 25% of households earning more than $100K per year, the more profitable and desirable customers for banks, agreed that they would be interested in using prepaid cards. Their main motivation was to avoid overdraft and/or other types of banking fees.

What are these prepaid card prospective customers looking for? Mintel’s research show:

What are the most popular ways for prepaid providers to offer incentives to attract this new class of customer? According to Mintel, approximately six in 10 people say they would be interested if a rebate or cashback were offered for using the prepaid card and seven in 10 find purchase discounts at merchants to be an attractive offer.

Fact is, with the new consumer protection laws put in place by congress, banks can no longer allow transactions for debit card holders create an overdraft. However, if a cardholder opts in for “overdraft protection” then they can put through overdrafts and potentially charge the customer a fee–either for the overdraft protection or for any overdrafts themselves. This is why you may have received ominous sounding emails or direct mail from your bank warning you that “you are no longer protected.”

Prepaid cash back rewards programs do exist. In fact MiCash is about to announce our own cash back rewards program very soon. Such programs let you shop at your favorite national or local retailers and restaurants, and redeem actual cash back that is credited to your prepaid card account.

Using prepaid cards to gamble on offshore Internet gambling websites is not allowed under new U.S. legal rules that went into effect June 1, 2010. It is now up to banks and prepaid card companies to enforce the law, known as the Unlawful Internet Gambling Enforcement Act (UIGEA). The law is specifies that card issuers must police “illegal online gambling” transactions, but the Off Shore Gaming Association points out that the government has not provided clear guidance about what that exactly means.

It is important to keep in mind that the UIGEA was not written to go after any player sending money offshore or receiving payouts from gaming companies. Instead, it enforces steep penalties on financial institutions for allowing ‘illegal Internet gambling’ transactions to occur.

Some further background from Wikipedia.