Prepaid cards are bad news for online transactions. They have a ton of problems with authentication. I would never recommend them for online use because they are so inconsistent.
As for the $1 hold, that is basically the card issuer registering the authentication request, but failing to respond in a way that is decipherable to the authenticator. In other words, PSN is not getting an ok from the card issuer to charge the card, either because the response is no, or being misunderstood.
--
http://img.imgcake.com/nio/bokbokbokpngur.png
Ok everyone this is Bartz so just remember.