Prepaid Debit Card Reviews, Complaints, Etc

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  • Banks Are Falling In Love With the Debit Card All Over Again

    Banks Are Falling In Love With the Debit Card All Over Again

    When financial reform targeted the lucrative overdraft and interchange/“swipe” fees, the banking industry began to move away from debit cards, but now banks are singing a different tune. With new Federal Reserve data showing that caps on swipe fees are working as intended, banks are going a different route to make up for the lost revenue: volume. Targeting tech savvy millenials, banks are marketing debit cards now more aggressively than ever; even resurrecting rewards programs in some areas.

    Last year, banks sent out 42 million direct-mail offers for new debit cards, up 6% from 2011 according to Mintel Compermedia. “It does appear that banks have regained their footing to some degree and are beginning to focus on debit card marketing,” says Susan Wolfe, vice president of research at Mintel Compermedia. Numbers don’t take into account the exponential rise in online marketing that’s taking place. With online marketing being far more cost effective than direct-mail, actual numbers are probably a lot higher.

    “Interestingly, banks are promoting online banking, mobile banking and text banking as ways to stay on top of debit card spending,” Wolfe says. “Debit is also positioned as a better way to manage finances,” since users can keep track of account balances in real time via text or email alerts on their cell phones.

    While debit card usage is up, credit card usage among 18-24 year-old college undergraduate students fell by 10% in just two years. Millenials are more money-conscious now, opting for debit card rewards, rather than credit card fees charging them to use their own money.

    For more information on this story, visit: http://business.time.com/2013/03/28/why-banks-love-debit-cards-again/

    For more from this author visit:  Tameka Riley’s Author Page

  • How to Safely Use Your Debit Card

    How to Safely Use Your Debit Card

    Debit Card Safety Tips

    How to Keep Your Debit Card Information Out of the Wrong Hands

    Bank fees, regulations and credit concerns have forced a countless number of people to turn to debit cards to serve every day banking needs.  With identity theft, cyber-crimes and other criminal activities on the rise, how can you be sure your account information is safe?  Whether you’re shopping online, making a purchase over the phone, or just out for a night on the town, here are some steps you can take to keep criminal activity at bay:

    • Never give out your PIN number or write in on or near your card.
    • Don’t give out bank account information over the phone unless you are the one who initiated the contact or know the person is who they claim to be.  For example, beware of deceptive calls or e-mail phishing schemes from criminals claiming to be from your bank or other entity requiring you to verify (divulge) your account information.
    • Don’t share your PIN or security code and other account information with friends or family who are not authorized users on your account.
    • Take precautions at the checkout counter, ATM machine and gas pump.  Always stand so that no one can see the keypad as you enter your PIN.  At retail establishments, its best to use self scanners.  If you do give your card to a clerk, be on guard against a dishonest employee who runs your card through two scanners instead of one.  The second scanner could be capturing your account information to make a counterfeit card.  In general, be alert for suspicious-looking devices that may be used to “skim” information from your card.
    • If you do use your debit card to shop online, consider extra precautions with your personal computer.  Experts advise installing and periodically updating virus and spyware protection and a “personal firewall” to stop thieves from secretly installing malicious software on your personal computer remotely that can be used to spy on your computer use and obtain account information.
    • Look at your bank statements as soon as they arrive.  Or, better yet, review your account each week by phone or on the internet.  Promptly report any discrepancy, such as a missing payment or an unauthorized transaction, to your bank.  Your quick attention to the problem may help limit your liability and give law enforcement authorities a head start on stopping the thief.
    • When dining out or in any situation that requires your card to be taken out of your sight, make sure the card that is returned to you is yours and not someone else’s.
    • Check your account activity frequently and promptly report any activity that is unfamiliar.
    • Always verify your balance when loading your card.

    For more from this author visit:  Tameka Riley’s Author Page

  • Chase Blueprint Presents the Resource Center for Mindful Spending

    Chase Blueprint Presents the Resource Center for Mindful Spending

    As more optimism sets in concerning consumer finances, Chase Blueprint releases its new initiative aimed at helping consumers reinforce positive spending habits.  The Resource Center for Mindful Spending was unveiled at Washington Post Live’s “Kitchen Table Economics” forum and is focused on helping customers take steps toward a better financial future.  The new initiative comes in the wake of Chase’s Pulse of the Consumer Survey revealing that more than seventy-six percent of Americans are more optimistic about their finances; up 11 percent from last year.

    The survey takes a comprehensive look at Americans’ financial habits and attitudes toward the economy.  Forty-five percent of those surveyed believes their personal finances have already bottomed out and are getting better, a fourteen percent increase from last year.  More than sixty percent believe the national economy has bottomed out and is stable or improving.  In addition, consumers are even more optimistic about economic conditions around them, with sixty-seven percent believing their local economy is stable or improving.

    The Resource Center for Mindful Spending draws upon the expertise of Chase and respected experts in areas ranging from finance to psychology.  Consumers can delve into a wealth of resources and tools to help them better understand how why they borrow and spend the way they do will help them use their resources wisely.

    “As consumers begin to feel more optimistic about their financial situation, it’s more important than ever that we help them maintain good spending habits,” said Florian Egg-Krings, general manager, Chase Blueprint.  “That’s why Chase Blueprint is launching a new initiative that provides research and information to help nurture a mindful spending movement.  Together, we can help consumers strengthen the responsible spending and borrowing habits developed over the last few years.”

    “Few question the importance of financial literacy, but we would benefit from a better understanding of how the human mind actually develops habits around spending and borrowing,” said Dr. Shefrin, the author of the paper and Mario Belotti Chair in the Department of Finance at Santa Clara University’s Leavey School of Business.  “Based on a deep investigation of how people spend and borrow, this paper identifies three specific pathways for developing better financial habits.”

    1. Make budgeting as easy as possible by designing smart, nurturing programs that help people carry out the basics of managing spending and borrowing.  This can involve things like: setting goals, developing budgets, tracking expenses, identifying ways to increase income, choosing appropriate lenders, matching a person’s credit cards to their specific needs and paying balances down intelligently.
    2. Use modern technology, specifically personal financial management tools to provide consumers with their current spending data in a straightforward method.  Collecting spending data in one place can help consumers recognize spending patterns and correct bad behavior before it gets out of control.
    3. Turn finances into fun by using games to help instill better spending and borrowing habits in children, particularly during the K-12 years.  Electronic games motivate students’ competitive instincts and activate the reward centers of their brains, all of which helps to make teaching them about mindful spending easier.

    About the Survey

    The 2013 Chase Blueprint Pulse of the Consumer Survey is an online omnibus poll of a nationally representative, randomly selected sample of 1,208 adults.  It was conducted March 5-7, 2013.  The margin of error is ± 2.8 percentage points.

    About Chase Blueprint

    Blueprint is available free of charge to new and existing Chase credit cardholders.  It’s simple to set up, easy to use and customizable.  With Blueprint, cardholders can save money and pay down balances faster.  More information is available at www.chase.com/blueprint.

    About Chase

    Chase is the U.S. consumer and commercial banking business of JPMorgan Chase & Co. (NYSE: JPM), a leading global financial services firm with assets of $2.4 trillion and operations in more than 60 countries.  Chase serves more than 50 million customers and small businesses through more than 5,500 bank branches, 17,500 ATMs, credit cards, mortgage offices, and online and mobile banking as well as through relationships with auto dealerships.  More information about Chase is available at www.chase.com.

     

  • Consumers Turning to Prepaid Debit Cards Now More Than Ever

    Consumers Turning to Prepaid Debit Cards Now More Than Ever

    With tighter consumer regulations and the low-interest rate environment, banks have had to find new and innovative ways to make a profit. This led to higher fees and the end of “free checking” in some cases.  This move caused many consumers to avoid bank accounts altogether.  According to the October 2011 report “Still Risky:  Bank Fees and Disclosures in the States” by The Pew Charitable Trusts, 89% of the checking accounts offered at the 12 largest U. S. institutions involve bank fees.

    In the wake of the Card Act, a lot of credit card issuers were proactively discarding their customers for becoming too risky.  According to the Federal Reserve Flow of Funds report, the credit growth in America has declined from 9.6% in 2006 during the height of the credit boom to negative 2.2% in 2010 and has remained low ever since.  Now, the market flooded with consumers hooked on the ease, security and convenience of plastic, these customers needed an outlet.  This niche was then filled by a number of companies who created the prepaid debit card.

    Prepaid debit cards allow consumers to avoid both the credit card related fees and interest rates as well as the bank related fees, all while enjoying the convenience and flexibility of being able to access/load their cards at over 60,000 retail outlets across the United States.  Their funds are available in real time and retail outlets keep much better hours than traditional banks.

    According to the Federal Reserve Payments Study in 2010, prepaid cards are the highest-growth noncash payments in America.  Prepaid debit card have quickly become America’s favorite piece of plastic.

    For more information on this story, visit:  http://www.foxbusiness.com/personal-finance/2013/04/23/why-consumers-flock-to-prepaid-debit-cards/

    For more from this author visit:  Tameka Riley’s Author Page

  • Debit Cards: A Growing Threat to the Banking Industry

    Debit Cards: A Growing Threat to the Banking Industry

    With ease of use and widespread availability, debit cards are becoming a growing threat to the banking industry.  Last year, prepaid debit card usage was up 18% while checking account usage plummeted from 92% to 88%.  While users avoid overdraft fees, debit cards are not cheaper than checking accounts.

    Incidentally, scores of users walked away from banks and the fees associated with them, lured by big named celebrity endorsers only to wind up paying even more money.  John Ulzheimer, President of Consumer Education at SmartCredit.com, warns against being tricked into thinking there aren’t any free alternatives.  “Debit card users are lazy,” says Ulzheimer.  “Free checking isn’t gone.  With just a cursory amount of shopping around, you can find a debit card that’s not only free, but will also give you an unsecured line of credit.”

    Gerri Willis of Fox Business Network’s The Willis Report fears,  “People are being robbed blind simply because they like the branding and ease of use that comes with the debit card.”  Over $82 billion was uploaded onto debit cards last year alone.  “Debit cards don’t help your credit score, there are no savings involved, and the users don’t have the opportunity to establish a relationship with a bank,” she says.  “You need access to what the banks have to offer to purchase homes, do business, and even education for your children,” said Ulzheimer.

    Today, many neighborhood stores and markets offer free “cash back with purchase” options at checkout, helping alleviate some of the hits most users take to their wallets, but in the long run, a little research can go a long way.  For more research on the best options for you, visit our in-depth reviews here on bestprepaiddebitcards.com.

    For more information from The Willis Report, visit:  http://video.foxbusiness.com/v/997395602001/millions-turning-to-prepaid-debit-cards?intcmp=related

    or visit :  http://video.foxbusiness.com/v/1559371429001/are-prepaid-debit-cards-mistake?intcmp=related

    For more from this author visit:  Tameka Riley’s Author Page

  • 5 Reasons Parents Should Get Prepaid Cards For Teens

    5 Reasons Parents Should Get Prepaid Cards For Teens

    Along with a driver’s license, a prepaid debit card can be one of the most important pieces of plastic a young adult can get

    Amid all the job losses and bankruptcies, our recent economic downturn has been especially difficult on young people. With a persistently dreadful job market, many college graduates are leaving school with degrees, but few prospects. Thanks to the Credit CARD Act of 2009, those under 21 are also not likely to be entering the adult world with a few years of credit history under the belt; the law prohibits anyone under 21 from getting a credit card unless a parent co-signs or they can prove sufficient income to qualify.

    There are plenty of reasons to cheer this legislation. It’s hard to argue that handing out credit cards to teenagers with no income and no restraint was a good idea. Still, credit cards used responsibly could be a real benefit to young people, ensuring them access to financial resources far from home and (hopefully) teaching vital money management skills.

    Into the void created by the elimination of credit cards for most young people have come prepaid debit cards, which offer many of the benefits of credit without some of the more distressing pitfalls. Designed to work much like a gift card from a supermarket or bookstore, prepaid debit cards allow a parent to fund the card with as much or little money as they choose, and then the teen can spend that amount when and where she likes. Along the way, hopefully, she can learn something about managing finances. Sending a child out into the adult world with a mountain of debt is obviously bad, but so too is letting them loose without any experience with plastic. Getting a prepaid card may be the answer you’ve been looking for – and it doesn’t even require a bank account.

    With all due apologies to David Letterman’s top 10 list, here are 5 reasons parents should hand their teens a prepaid debit card:

    1. It can save money. As in, it can save you money. Have you ever handed your kid a $50 bill for a $30 event and asked for the change, only to be told later that there wasn’t any money left? Once you give your son a prepaid card, he has exactly what you put on his card, nothing more.

    2. It teaches budgeting skills. Think about it. Let’s say your kid is off at college, or even in high school and still under your roof. If you want to teach them that spending decisions have consequences, simply fund a prepaid debit card with an amount you decide is reasonable for a month and step out of the way. Sure, your teen can go out and blow the entire amount in a night. But if you stay strong and don’t replenish the card’s account, they’ll probably do better the next month. Weeks of eating nothing but Ramen noodles can provide invaluable focus.

    3. It also teaches priorities. Ultimately, how we spend our money says a lot about what matters to us in life. And the same is true with teens. By handing over a prepaid debit card and giving them the freedom to choose how to spend it, you are helping them figure out the experiences and material things that really add value to their lives.

    4. Training wheels for credit cards. Unless things go terribly wrong, your teen will eventually get a credit card. Having used a prepaid debit card for a few years beforehand should give them the chops to handle credit. “Prepaid debit cards do offer a safe environment for young people to learn how to transact using plastic. Most young people will eventually use credit cards, and learning about financial responsibility in a controlled environment offered by a prepaid card will likely benefit future credit card users,” says John Ulzheimer, president of consumer education at SmartCredit.com.

    5. It can prevent a financial emergency. Adults of a certain age can probably still remember how we convinced our parents that it was a good idea to get a credit card when we were young. You know, by scaring the heck out of them with tales of losing cash and being penniless in a faraway city. Well, like it or not, the tables are turned and the same story ought to work on you now as a parent when it comes to prepaid cards. But guess what, you were right then and they are right now. Prepaid debit cards, like credit cards, can be cancelled and reissued when lost or stolen in a way that cash simply can’t.

    Of course, there are fees associated with prepaid cards — though the money you lose when your teen forgets to give you change might well exceed those fees. So go ahead and get your teen a prepaid debit card and begin them on their journey towards becoming a financially responsible adult.

Prepaid Debit Card Reviews, Complaints, Etc