That's correct, at least for prepaid gift card. In addition, there are people (or school of thoughts) that refer to AMEX prepaid reloadable cards: e.g., get permanent prepaid from AMEX and buy reloads from office supply stores then add the amount to the permanent prepaid AMEX - the tipping factor is the option to withdraw cash from these so called permanent prepaid cards although there is a limit for the amount you can withdraw each month. See details here
http://boardingarea.com/blogs/freque...rule-them-all/
Originally Posted by
redtop43
The advantage is that you (a) can time-shift purchases to meet spending requirements and (b) can often purchase the prepaid card at a store which falls into a bonus category. For example, if you had an Ink Bold or a Chase Freedom with groceries as a bonus category, you could purchase the prepaid card at an office supply or grocery store respectively, and get 5x points. Then you use the prepaid card as you would any credit card.
Am I understanding this right?
Also, are these cards reloadable? This would be useful if you wanted to register the card for some kind of recurring use, or just not deal frequently with a small balance.