[kyrra]

Prepaid credit cards tend to be a very common fraud vector (very similar to gift card scams).

For chargebacks, the merchant has to pay at least a $15 fee on every chargeback, regardless of the outcome of the result. It's why many merchants prefer for you to contact them and ask for a refund rather than going through the chargeback process. For small purchases, merchants tend to just refund rather than dealing with an angry customer that's going to charge back.

[DivingForGold]

On the other hand, prepaid credit cards seem to be one of the only ways to prevent merchants from "running up" the charges on a customers account. Sure, a customer can go through the dispute process but it's quite a hassle. Just "limiting the amount of money you place on the table" is quite effective. Giving a merchant your credit card with say a $5,000 or more available balance seems like insanity, like laying out 50 of $100 bills on the table: "here, go ahead, can I trust you to take only what you should" ? I would pay extra to have a VISA or MC credit card that only offers say a $200 limit, just for dubious situations, but again, providers have a "conflict of interest" in that they only make their "cut" when the charges go through, so the more and the larger the charges - - the more "cut" they obtain.

[charcircuit]

A prepaid card doesn't prevent you from being liable for a bill. This is like how leaving your wallet at home when you visit a resteraunt doesn't entitle you to free food because they don't charge you up front.