Have you ever actually tried to use one of those online?

Since pretty much every place I tried to use one on the Internet does address verification when processing the transaction, they simply don't work.

You can go online and add an address or call the number on the back. I have done this with a pre-paid Amex, simple as can be (you can choose any address!).

> go online

IP address

> call the number

Phone number

Careful.

Yeah, I've tried that... with three different cards in the last month. I have yet to have a transaction complete successfully.

Smarter sites know its a prepaid card by the BIN and turn off the AVS check.

Smarter sites know it is a prepaid card and decline the transaction.

Why is turning away business smart - don't prepaid cards get authed the same way normal cards do? Are they commonly associated with fraudulent orders? I am genuinely curious, they seem like they would be generally safe for merchants to accept online.

They're generally associated with fraudulent orders in a lot of markets. They're easy to get and hard to trace, and limit the liability of the person doing it. I've heard that they're common to use for buying resealable goods to launder smaller amounts of money.