privacy through prepaid credit cards
_I originally wrote this in March 2005, and only update it occasionally. It's
still a good overview, and generally up to date, but parts may sometimes be
stale. Also see
[Why I'm weird about privacy](2011-08-03_why_im_weird_about_privacy) and
[faking out address and credit card forms](faking_out_address_and_credit_card_forms)._
If you've known me for any length of time, you know that I'm a privacy freak. I
can't explain why, but I'm hyper-sensitive about giving out personal
information. I practically hyperventilate when I consider all the databases of
things I've bought, people I've called, and movies I've watched. I may not be
especially private about some things, but I'll be damned if Safeway
needs my phone number or address to sell me a loaf of bread.
Unfortunately, this can make life complicated. For example, I get all my mail at
work. I didn't get a cell phone until 2010. I buy plane tickets and hotel rooms
with cash. I've frozen my credit report with [all](http://equifax.com/)
[three](http://transunion.com/) [agencies](http://experian.com/). It's
inconvenient, but doable.
The worst part, though, is that I don't use a credit card. I have one, to build
a credit rating, but I only use it to buy gas, so that there's no profile of my
real purchasing habits. This is inconvenient, to say the least. I have to go to
the airport to buy plane tickets. I pay cash for everything. I can't buy
_anything_ online.
To put it bluntly, this sucks. So, I set out on a quest to find an anonymous,
prepaid credit/debit card I can use online - in essence,
[digital cash](http://en.wikipedia.org/wiki/Electronic_money) that I can swipe
at Amazon as well as the checkout counter.
If you're in a hurry, here's the executive summary: I use
[Simon gift cards](https://www.simon.com/giftcard/).
I buy them in person at a Simon mall, and overall, I'm pretty happy with them.
They may not be perfect, but they're close.
Hank Taggart agrees with me in his book
[How to Purchase Anonymously on the Internet](http://www.nobodywillknow.com/),
on both the details and the conclusion to use Simon. If you're interested, it's
well worth reading.
### Types
There are _lots_ of prepaid credit cards out there. The candidates break down
into a few rough categories: gift cards, prepaid cards, VCCs (virtual credit
cards), and exotic "digital cash" alternatives.
_Gift cards_ are the runt of the litter. They only go up to $500, they generally
can't be [reloaded](#purchase_and_reload), and some merchants refuse to accept
them, whether explicitly or because most don't support
[AVS checks](http://en.wikipedia.org/wiki/Address_Verification_System). On the
plus side, you can [buy them](#purchase_and_reload) with cash and without
providing any [identifying information](#personal_information) whatsoever.
Examples include [Simon](https://www.simon.com/giftcard/) and
[Westfield](http://westfield.com/uscentres/giftcards/) mall gift cards, the
[credit](https://www.discover.com/gift-cards/giving.shtml)
[card](https://www.americanexpress.com/gift-cards/?inav=footer_giftcards)
[companies](http://usa.visa.com/personal/cards/prepaid/visa_gift_card.html)
[themselves](http://www.mastercard.us/prepaid-gift-card.html), and many other
banks and financial institutions.
If gift cards are the runt, _prepaid cards_ are the big brother. They're
[stored value cards](http://en.wikipedia.org/wiki/Stored-value_card) that
otherwise behave just like full fledged credit cards. They're reloadable, can
store over $500, and thus require and usually verify personal information and
and SSN. Like gift cards, there are lots of different kinds, often aimed at
specific target audiences like teenagers or travelers or people with bad credit.
Providers include dedicated companies like
[Green Dot](http://greendotonline.com/) and
[NetSpend](https://www.netspend.com/),
most banks, and as usual, the
[credit](http://www.mastercard.us/prepaid-card.html)
[card](http://americanexpress.com/prepaid)
[companies](http://usa.visa.com/personal/cards/prepaid/index.html).
Continuing with the family metaphor, _VCCs_ (virtual credit cards) have to be
the sketchy uncle. They're usually issued by overseas companies, often in
unusual countries with looser laws and regulations, which usually means no ID
checks! They're stored value and reloadable, like prepaid cards, but with
limited funding mechanisms and higher fees, often based on a percentage as high
as 20%. Examples include [Card444](http://card444.com/),
[Seven Capital](http://seven-capital.com/),
[Sovereign Gold Card](http://www.sovereigngoldcard.com),
[wwwcard](http://www-card.com), and [ePassporte](http://epassporte.com). Some
are based in more comfortable countries,
e.g. [Swiss Bankers](http://www.swissbankers.ch/) and
UK-based [Entropay](http://entropay.com), but that usually also means they
require stricter ID checks.
Finally, the colorful, harmless, doddering old grandpa:
_[digital cash](http://en.wikipedia.org/wiki/Electronic_money)_. These upstarts
tout security, privacy/anonymity, and (more) independence from governments and
central banks. They range from [Bitcoin](http://bitcoin.org/), championed by
libertarians and privacy freaks alike, to [PayPal](http://www.paypal.com/), that
bastion of banking regulations and ID requirements. Others include
[ECount](http://ecount.com/defaultecount.asp),
[ProPay](http://www.propay.com/),
[E-Gold](http://www.e-gold.com/),
[Liberty Reserve](http://www.libertyreserve.com/), and
[Mondex](http://www.mondexusa.com/).
Most are up and running, and you can use them to buy things, but none are widely
accepted. Credit card networks like Mastercard, Visa, Discover, etc. are still
the top dogs in terms of acceptability, but provide little true security and
absolutely no anonymity. Hybrid systems like PayPal have made inroads, but only
a little, and most of those are fallint into the traditional bank and credit
card model, losing any hope of anonymity in the process.
### Personal information
The card I'm looking for shouldn't ask for much
[PII](http://en.wikipedia.org/wiki/Personally_identifiable_information). If they
do, they shouldn't actually use or verify it. Social Security number, driver's
license, passport, birthdate, and phone number are all things I'm not willing to
give up. Ideally, I don't even want the cardholder's name to be mine. I am
willing to give some personal information, though, such as address and email.
I'm also willing to lie about the rest.
Unfortunately, the [PATRIOT Act](http://en.wikipedia.org/wiki/USA_PATRIOT_Act)'s
[money laundering requirements](http://en.wikipedia.org/wiki/USA_PATRIOT_Act,_Title_III)
classify pretty much all stored value cards as financial instruments, especially
if they're reloadable or can store over $500, and require issuers to collect
_and verify_ ID, usually including SSN. Some go even further;
[Morgan Beaumont](http://www.morganbeaumont.com/)'s
[application form](http://www.morganbeaumont.com/support_apply.cfm), for
example, asks for a copy of your passport or drivers license! No thanks.
Here's an example disclaimer:
> The USA PATRIOT Act is a Federal law that requires all financial institutions
> to obtain, verify, and record information that identifies each person who
> opens an account. You will be asked to provide your name, address, date of
> birth, and other information that will allow us to identify you. You may also
> be asked to provide documentation as proof of identification.
The verification part seems to vary, though. Some issuers seem to be less strict
about it than others. I'm always on the lookout for an issuer that's
sufficiently lazy that I can give them totally fabricated information. Fingers
crossed!
### Purchase and Reload
I'd like to be able to buy prepaid cards in person, with cash. It'd be nice if
there were many convenient locations, but I don't mind going out of my way.
Many cards support one of the common retail reload networks, including
[Green Dot](https://www.greendot.com/)'s [MoneyPak](https://www.moneypak.com/)
and [Western Union](http://www.westernunion.com/)'s
[SwiftPay](http://www.westernunion.com/info/osSwiftPay.asp). You
can buy reload packs or add money at the register at drugstores, convenience
stores, gas stations, and other common retail stores.
Other cards, like [Elite Plus](http://www.elitepluscardapp.com/), can be bought
at most major banks. Yet other cards, like
[Vaya](http://corp.ecount.com/prod/rf.html), can be paid for by mailing a check
or money order. Finally, some banks sell prepaid cards outright, but they
usually require you to have an existing account.
Once you've acquired a prepaid card and start using it, it will eventually run
out of funds. At that point, you can either buy a new card or add funds to your
existing card, also known as recharging or reloading.
Recharging is definitely preferable to buying a new card, since the new card
would have a new number. If you used the card to pay any recurring bills, such
as [Netflix](http://netflix.com/) or [Vonage](http://vonage.com/)
([which I love](2004-12-24_its_the_phone_stupid)), you'd have to switch each of
those services to the new card number. Unfortunately, many prepaid cards aren't
rechargeable at all.
### The dregs
I'm willing to live with the inconvenience of switching card numbers. However,
there's always a small amount of money remaining on the card that I can't use.
It's not enough to buy whatever I'd normally buy, and I'm not inclined to buy a
bunch of little things that I don't need just to squeeze out the rest of my
money. It's my money, after all!
Ideally, major e-commerce sites would let you use multiple credit cards to pay
for a purchase, specifying the amount to charge to each card. Restaurants have
done this forever, but I don't know of any sites that do. If you're in this
predicament, consider donating to your favorite
[non-profit](http://www.eff.org), [web site](http://penny-arcade.com/), or
[other worthy cause](http://mytwofrontteeth.org/). You can specify the exact
remainder on your card as the amount to donate.
### Credit Reporting
The main target audience for prepaid cards is people with bad credit. So, a few
issuers offer the "feature" of monthly reporting to credit agencies. This may be
good if you need to build up good credit fast, but I don't, and I sure as hell
don't want them voluntarily reporting anything to anyone. Watch out for this.
### Acceptability
The card should work like a normal Mastercard, Visa, or Discover card, without
exception. I should be able to use it anywhere those cards are accepted,
especially online. Having said that, I'd only use the card to pay for things
online, like [Netflix](http://netflix.com/) and [Vonage](http://vonage.com/).
So, I only need the card number and CVV; I don't really need an actual physical
card. However, a physical card does help in some cases. When I buy airline
tickets and hotel rooms with a prepaid card, it helps to have the physical card
when I check in.
Also, if your goal is privacy, there's still an open question. Some card
issuers, mostly the ones that support retail purchase, don't ask for cardholder
name or address. (This may have changed since 9/11.) If a merchant checks
cardholder name and address when they authorize a purchase, could I use a name-
or address-free card with that merchant? If so, how?
### Fees
I expect that I'll pay extra for the privilege of using a prepaid card. I don't
mind activation fees or yearly fees, but I'm not inclined to pay a monthly fee
(e.g. Green Dot), and there's no way in hell I'm going to pay a fee per
transaction. Also, the activation fees for some cards are prohibitively large.
[Elite Plus](http://www.elitepluscardapp.com/) charges $150! No thanks.
### The Verdict
I currently use [Simon gift cards](https://www.simon.com/giftcard/), and I'm
happy with them. They're not reloadable, but they take up to $500, accept cash,
and don't even ask for my name, much less my address or SSN. Plus, their
[web interface](https://www.simon.com/giftcard/) lets you connect _any_ name and
address you want to each card, so you can use them with merchants that do
[AVS checks](http://en.wikipedia.org/wiki/Address_Verification_System).
Before Simon, I used [WebSecret](http://websecretcard.com/), which was great,
but expensive, and ultimately discontinued. Before that, I used
[Bank of America gift cards](http://bankofamerica.com/giftcard/), which were
also discontinued. They required name, address, and SSN, which I fabricated, but
still didn't like. Worse, they only allowed purchase with another credit or
debit card. Simon cards are much better!
### References
* [Hank Taggart - How to Purchase Anonymously on the Internet](http://www.nobodywillknow.com/)
* [Clairefiles](http://tcftalk.com/clairefiles/) thread:
[Quick Anon Plastic](http://tcftalk.com/clairefiles/index.php?PHPSESSID=1a0ae67cc49ef707f6fceec408840268&topic=8123.0)
* [EscapeArtist](http://www.escapeartist.com/) article:
[Currency Cards: Like Having Gold in your Wallet](http://www.escapeartist.com/efam/73/Currency_Cards.html).
* [cardreport.com](http://www.cardreport.com/dirs/prepaid.html)
* [Google Answers question: "prepaid debitcards"](http://answers.google.com/answers/threadview?id=277200)