I got a cash rebate in the mail last week. To my surprise, instead of a check it came in the form of a prepaid Mastercard. This card, issued by Citi, came with some horrendous conditions attached to it. There would be a monthly fee to the card that would lower it’s balance every month by several dollars. Over a year, the $20 rebate would be wiped clean by bank fees!

Ontario passed a law where prepaid cards cannot have admin fees charged to prepaid cards, but federal corporations (e.g. Citibank) are exempt from the law. The Toronto Star ran an article about the same practice – if you have a card, spend it quickly

I’ve always used a credit card that had purchase protection. It’s one of those “bonus” features that are found in most non-point cars that I think are really worth it. The TD Gold Select is one of the few cards that offer purchase protection and don’t have a fee. This protection even covers damages to an item you purchased:

Enjoy worry-free shopping with Purchase Security and Extended Warranty Protection. If an eligible item that you purchased in full with your eligible TD Visa Card is stolen or damaged within 90 days of purchase, it may be replaced or repaired or you will be reimbursed for it. If the item comes with a manufacturer’s warranty, you may be entitled to double the warranty period by up to 12 additional months.

There’s plenty of other cards that offer this, some without a fee – so shop around! It’ll protect you from purchasing broken tv’s.