Most of the time the Localcoin prepaid VISA card can be used wherever VISA is accepted, however there are a handful of exceptions. For example, tolerance is a temporary charge that can be applied to a prepaid card when used at restaurants, hotels, bars, and salons (i.e. places that may add tips or gratuities to the total cost of the service received). The tolerance amount could account for up to an additional 20% of the service amount on the bill. Once the transaction is complete, the tolerance amount is removed.

Prepaid card owners are encouraged to apply sufficient funds onto their prepaid cards to account for tips and gratuities being applied to their card. For example, if your total bill at a restaurant is $50, the card may be preauthorized for $50 + 20% as a temporary tolerance charge. This means that a $60 balance will need to be available on the prepaid card prior to finalizing the purchase in order for the purchase to be approved. Tolerance charges will never remain on a prepaid card owner’s account since the charge will be removed once the total purchase including tips and gratuities has been completed. 

Some additional exceptions include the following:

  • While purchasing gas directly at the pump, in the case of most gas stations, prepaid card payments can only be made in-store with the cashier.

  • In all cases, cash back is not available for use with prepaid cards.