Prepaid Visa credit cards are becoming increasingly popular. Parents are using them to pay their children's allowances, companies are using them for payroll purposes and gift givers find them to be the perfect one-size-fits all present. However, prepaid Visa credit cards aren't always all sugar and spice. Before you run out and get one of your own, there are some things you need to know.

1. You're Going to Pay For It

Prepaid Visa credit cards are not free. Yes, Visa makes money whenever merchants process a credit card transaction, but that's not why they offer prepaid Visa credit cards. Instead, money is made from the fees associated with purchasing and using prepaid Visa cards.

The fee from one prepaid credit card to the next will vary, so before purchasing one make sure you're aware of any costs the card will incur. Some prepaid via credit cards charge a "set up" fee, which is charged just for purchasing the card. Others charge a "monthly maintenance" fee and still others charge a fee every time the card is used.

Do yourself a favor. Look for prepaid Visa credit cards that only charge a one-time initial fee or maintenance fees for cards that have been inactive for six months or more.

2. Not Everywhere Visa Is Accepted

It's important to understand that prepaid Visa credit cards are not always accepted everywhere Visa is. For instance, car rental companies (Avis for one) will not always accept prepaid Visa credit cards and some gas stations will not accept them either.

If you do have a prepaid Visa credit card, make sure you ask if it is an accepted form of payment before renting a car or booking a hotel room.

3. It Won't Help Your Credit

Unlike secured credit cards, prepaid Visa credit cards will not report your account activity to the three credit bureaus. This means that they won't do a single thing to help your credit. If you're looking for a way to improve your credit rating, you'll want a secured credit card in addition to or instead of a prepaid Visa credit card.

4. There Are Some Great Benefits

There are prepaid Visa credit cards that are definitely all they're cracked up to be. The ones that don't charge ridiculous fees really do make great gifts and they're a safe way to make online purchases without actually putting your credit card number out there.

So while prepaid Visa credit cards aren't always the ideal situation, finding the right one can definitely have its perks. If you do want to purchase a prepaid credit card, compare the prepaid Visa credit cards that are available, review the terms and conditions and select the one that best suits your needs.