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I use prepaid credit cards with Kobo, and generally don't have trouble linking them to my Kobo account.
However, I DO have to make sure that I have "registered" my card first, by logging in to the website and making sure that my postal code is valid. If my credit card doesn't have a Canadian postal code, then I cannot register it with my Canadian Kobo account at my Canadian address.
And sometimes, when I first get the new card, and have JUST registered the address, Kobo's preauth checking fails multiple times. I do not know if it's because the credit card's database takes time to update after registering the new postal code, but that's my best guess.
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