Can a prepaid credit card company hold your deposited funds? They do not agree with the reason for the refund, so they are holding all funds even funds that have nothing to do with the transaction. Is this legal? Who do you report issues to other than the company's customer service line, they have refused to offer assistance.

The company is Blackhawk network and I have been trying to get this issue resolved since April 3rd and now they refuse to return the money to merchant (reject the charge), close the account and send me the full refund amount or release the funds.

What are my options?

Thank you,

They can do a lot of things you might not think are legal... but are. That's how they make money off these because the people that use them usually can't qualify for a real credit card because of a poor credit history.

You need to read the fine print of the agreement.

Even real credit cards will put a hold on funds when there is a dispute.

Ok, what are my options?

Also I have several credit cards, credit was/is not the issue. This prepaid card was encouraged by my employer because we have a "relationship" with the distributor, of course now my company is of no assistance

You really need to read all the fine print... part of the terms of service... they are even more entitled to hold funds in question than a real credit card when a dispute arrises until resolution because they can't bill you for it if it goes in the wrong way.

Holding funds is not the same as siezing or confiscating them.