Master cards?

Question

Ok, so I want to buy the nbew update for the Itouch 2.0. Anyways, I bought a Itunes gift card just for the update but it turns ouit that in Canada we have to use a credit card because of some law. I dont have a credit card but I just wanted to know how a pre-paid mastercard works. I am 15.

Is there like interest on it or anything? Because I was looking at them and I think you have to pay like 3 dollars to buy the card and then load it or something...i am really confused.

Answer 1

It is actually not confusing, just expensive in some cases to use a pre-paid master card in Canada. With some banks, there is a sign-up fee, inactivity fee, reload fee, etc. For a list of the fees from one company, see attached link. The only good feature is that there is no interest charged, since you are paying your money in cash into the card and not borrowing money from the bank. But then, you are losing interest on the money that would otherwise be in the bank earning interest. Considering your age and the relatively high fees charged on these pre-paid cards, it may be a good idea to get a regular credit card holder to charge your nbew update fee to their card, and you pay them in cash.