Questions regarding prepaid credit cards/gift cards and usage outside of U.S.?

Question

My daughter and her friends are heading into Canada to spend a few days. She would rather not take her debit card with her for fear of losing it, etc. She was interested in buying one of those prepaid credit cards/gift cards to use instead. This way she can load it with the only the dollars she wishes to use on the trip (saves the risk of overspending-LOL!).

Does anyone know how these cards work? Can they be used in Canada? Are there any hidden fees she should be worried about? Can they be used to hold and pay for hotels? I read somewhere that some hotels put a hold on the prepaid card for "estimated charges" and it may take days before the hold is released even if no additional charges have been charged to the room. Is this true? Which cards are better?

Any help you could give her would be appreciated.

Answer 1

In the U.S., hotels and car rentals do put a hold on a card.  For this reason, in the U.S., debit cards and prepaid cards should not be used for hotels or car rentals.  Only actual credit cards should be used in the U.S. for hotels and car rentals.  

I would assume that Canada is similar.