Slightly OT - Virtual Money

Dik: · Post by **Dik:** » 11 September 08 2:17 pm

Just wondering if anyone has any good suggestions for "virtual money" to spend on the internet?

I spent a lot of time looking at PayPal and couldn't work out how to put money into it. Then it clicked, you had to give them your credit card details.

Sort of defeated the purpose.

It took me a great deal of research to find BOPO pre paid visa, and now they have gone out of business.
I liked BOPO because it let me limit my exposure.
I could deposit money as required, and keep a balance below $100

There is no way I'm going to publish my "real" credit card details on the internet.

So,I need a new way of having virtual money to spend on the likes of GC subscriptions, GCA goodies, but I don't want fees that are greater than what I am spending.

The pre-paid cards I am seeing have horendous fees. $36 pa plus transaction fees.

Thats a lot if you are only making a $30 purchase.

The alternative is an ANZ card from the Post office, but they are $50 or $100 value and cost $5.50, and you can't top them up so you loose the difference between what it cost and what you spend.

I'm sure there must be a way of doing it.
How does everyone else here pay these bills?

Any suggestions

Low (sensible) fees
Limited exposure

Mischief's Crew · Post by **Mischief's Crew** » 11 September 08 2:37 pm

I use PayPal and don't have a credit card. I can either transfer money direct from my bank account or they can debit any monies owing from my bank account. I have not had a single problem and I have spent heaps using it with no credit card details.

Team Wibble · Post by **Team Wibble** » 11 September 08 3:07 pm

On the other side of the coin, I have maintained a paypal account with a credit card for some time now with no problems, and made many purchases online using credit card also.

If you are a little concerned about the security, you could do what I've done and simply maintained a credit card with a very low limit so that if something does go awry it won't be catastrophic. Combined with frequent use of online banking I keep a pretty close eye on my account and would notice within a couple of days if something had gone wrong.

ETA - the credit card costs me virtually nothing, low annual fee but with a horrific interest rate, which doesn't bother me as its always completely paid off.

Papa Bear_Left · Post by **Papa Bear_Left** » 11 September 08 3:22 pm

I've used Paypal for years, both with a bank account and a credit card, with no problems.

The way I look at it, at least I'm only giving my financial details to one vendor, and one which has a vested interest in keeping those data secure. Otherwise, you're giving your CC number to places whose business is really selling stuff, not online financial services.

That said, my main credit card is a Visa Gold Card, which has unlimited protection for online transactions, so I'm covered anyway.

I like the idea of one-time CC numbers, which has been trialled by Paypal (and probably others) but hasn't become mainstream. You can give out the next number in the set you're given, secure in the knowlege that it'll only work for one transaction. If someone gets hold of the number and tries to buy something else with it, it simply won't work.

Bundyrumandcoke · Post by **Bundyrumandcoke** » 11 September 08 4:50 pm

I also have a credit card with a low limit (in my case $300) that I use for internet transactions. If my purchase is going to be more than that, I put it into credit before I make the purchase. Card was supplied by Suncorp Metway. I did want to change, but haven't found another bank willing to issue a card with such a low limit.

Team Wibble · Post by **Team Wibble** » 11 September 08 5:25 pm

Bundyrumandcoke wrote:I also have a credit card with a low limit (in my case $300) that I use for internet transactions. If my purchase is going to be more than that, I put it into credit before I make the purchase. Card was supplied by Suncorp Metway. I did want to change, but haven't found another bank willing to issue a card with such a low limit.

I'm amazed you got a card with that low a limit! The lowest I've been able to get is $1000, although ironically that's also the maximum my current bank was willing to give me too (suits me fine).

Unlike my previous bank, who, when I was fresh out of uni, unemployed and had literally $300 to my name, offered me (unsolicited) a pre-approved credit card with a limit of $9,800

I didn't take them up on the offer.

tronador · Post by **tronador** » 11 September 08 7:15 pm

I too have used Pay Pal numerous times with my credit card. Also have made many internet purchases and have nevefr had a problem. just make sure you don't send credit card details via email and check that the web site page has alittle padlock at the bottom right side. this tells you its a secure site.

J_&_J · Post by **J_&_J** » 11 September 08 8:17 pm

Pay Pal enables me to cash-out real virtual monies earned in Second Life into real world funds in my bank account. Pay Pal is a very versatile tool indeed!

psychokat · Post by **psychokat** » 11 September 08 8:37 pm

The lowest limit you can get from the commonwealth bank is $500. The interest rate is a killer but you still get the month interest free and the yearly fee isn't much.
I've used it on paypal for a couple of years and I've never had a problem.

Damo. · Post by **Damo.** » 12 September 08 11:10 pm

Another prepaid option to the ANZ one you offered can be found at Westpac. Prepaid Mastercard. $4.95 per card and can load up to $800.

My recommendation would be, get a credit card if you can.
It would actually be a more convenient and cheaper option for you. Cheaper if you can get one with no annual fee and an interest free period. (and you don't see the credit limit as being money available to spend)
More convenient as if anything does go pear-shaped and there is fraud committed on the card it's the bank's money that they have taken not yours. (That's the biggest problem with the current push by the banks, and the credit unions before them, to get people to use debit Visa/Mastercard instead of EFTPOS.)
If there is any fraud on the card, as long as you have not contributed to it and notify the bank as soon as you are aware (normally the due date of the statement it occurs on) YOU ARE NOT LIABLE. Worst case is the debit will sit there on your card for 6 weeks because the merchant has up to 30 days to respond in writing to your card provider, then they credit the fund back along with any interest you may have been charged.

If it was a pre paid card you would have used any credit left on it ringing the premium charge "help line".

If you really don't want or can't get a credit card, you could open a bank account for the purpose and get a debit mc/visa linked to it. Westpac have a $3/month "Choice eAccount" and the Debit MC is no charge. If there was fraud on it though it would be your own funds from the account.

Dik: · Post by **Dik:** » 13 September 08 11:15 am

Thanks for all the replies everyone.
I talked directly to the bank about options on a low credit limit standard card to see how low they will go. $500 was it. Now all I have to do is give them heaps of details, documents and references.

I understand that Pay Pal works for some, but I still don't understand how it can be safe if you still have to type your credit card number into the internet. I thought the whole point was NOT to do that. Bank's might offer guarantees, but I bet there's a lot of work getting them to give you your life's savings back when it goes. I just don't want to put myself in that position.

I had a look at the Westpac prepaid option and that's as bad as any. $4.95, can't top it up and you forefit the balance after 12 months or when it drops below $15!

Team Wibble · Post by **Team Wibble** » 14 September 08 6:24 pm

Sorry, but I couldn't resist....

Dik: wrote:Bank's might offer guarantees, but I bet there's a lot of work getting them to give you your life's savings back when it goes. !

If you're life savings are sitting on your credit card, you've got bigger problems than internet security!!

Coffee and Cache · Post by **Coffee and Cache** » 14 September 08 8:41 pm

I wanted to get a low-credit limit credit card for the same purpose, but I found out as others obviously have, that the banks won't do it any more. Instead, I got a visa linked debit card and I just keep a very small amount of money in it, topping it up with an Internet transfer when ever needed. Most I can lose is whatever I put in it. This was with the Bendigo bank although other banks probably do it too. Costs me virtually nothing - problem solved.

Dik: · Post by **Dik:** » 15 September 08 9:48 am

Thanks for more replies.

If you're life savings are sitting on your credit card, you've got bigger problems than internet security!!

I've never had any problem accessing my other accounts using my credit card. Maybe I need to talk to my bank about that.

I wanted to get a low-credit limit credit card for the same purpose, but I found out as others obviously have, that the banks won't do it any more. Instead, I got a visa linked debit card and I just keep a very small amount of money in it, topping it up with an Internet transfer when ever needed. Most I can lose is whatever I put in it. This was with the Bendigo bank although other banks probably do it too. Costs me virtually nothing - problem solved.

Thanks. Bendigo Bank sounds like a good option. Bank SA / St George wanted $6 a month ($72 pa) for that option.