Prepaid Debit Card Reviews, Complaints, Etc

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  • SpendSmart Names Justin Bieber as Brand Ambassador

    SpendSmart Names Justin Bieber as Brand Ambassador

    Bieber Promotes Debit Card via Videos, Social Media

    Would Justin Beiber’s ebdorsement make you want a branded prepaid debit card?  SpendSmart Payments is hoping so.  Its new card features Bieber, its brand ambassador, in a video series called “Real Talk,” that is aimed at helping teens and families develop responsible spending habits.  In the first video, Bieber talks about his upbringing and how he learned to make a budget and save for things he wanted.

    Critics say the card may not be a good deal for young consumers, saying there are better and less expensive ways to educate teens.  Fox News says parents may want to think twice before giving their teen the card.

    The fees associated with the card include:

    • Monthly fee: $3.95
    • Loading charge: One free deposit per month from savings or checking account, $0.75; $2.95 from a credit or debit card
    • ATM charge: $1.50 per withdrawal plus any third party fees; $0.50 per balance inquiry (though balance inquiries online are free)
    • Inactivity fee: $3 if the card is not used for 90 days
    • Replacement fee: $7.95 if the card is lost

    In its brief history, SpendSmart has worked with a couple of different celebrities and has yet to report a profitable quarter since it went public in 2008.  The San Diego-based company won’t comment on the specifics of its deal with Bieber, but sources say it includes a $3.75 million endorsement deal and the option to buy 2 million shares.

    Celebrity endorsements don’t guarantee success.  The Usher Prepaid MasterCard and the Kardashian Kard are proof of that.  SpendSmart’s strategy includes appealing to Bieber’s vast social media following, which includes 37.7 million Twitter followers, 2 million subscribers to his YouTube channel and more than 52 million Facebook fans.  With a following this big, Bieber has a wider reach than some television networks.

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

  • Rewards Season: Prepaid Debit Card Benefits to Look For

    Rewards Season: Prepaid Debit Card Benefits to Look For

    No, it’s not the Oscars and there won’t be any tedious speeches. But prepaid cards do offer ways to get awards

    There’s no official name or diagnosis, but most of us know someone who suffers (or benefits) from a condition perhaps best called frequent flyer-itis. You know the type: they’re the ones whose wanderlust is so overpowering that they pull out their co-branded airline credit card to pay their rent, buy groceries or even take home a six-pack. In a quest to wrack up miles, the card is used for everything.

    Given the popularity of many of these so-called rewards programs in the credit card universe, it should come as no great surprise that the issuers of prepaid debit cards use the same quid pro quo approach as a way to encourage more frequent use of their products. Like their credit card brethren, these rewards can range from cash back to points earned toward purchases. Here’s a look at how a few of the many rewards programs work.


    Free Food

    Not surprisingly, the rewards program associated with the grocery store chain’s Kroger 1-2-3 REWARDS Prepaid Card revolves around food. That is, the enticement to get holders of the card to use it as much as possible is the prospect of earning free gallons of milk and Fuji apples.

    The program is set up in a very familiar way. Every $1 you spend using your rewards card earns you points, which can then be redeemed towards the purchase of groceries. To put it simply, every 1,000 points you earn translates into $5 in groceries. But how quickly someone can reach that 1,000 point milestone depends on where they use their card. If you go to, say, McDonalds or Whole Foods – any store outside the Kroger family – then each dollar spent earns 1 point. So, $500 worth of Big Macs would garner 500 points.

    But if you opt instead to pull out your 1-2-3 REWARDS Prepaid Card to settle up your tab inside one of the Kroger stores that will earn you double the points: so $500 worth of Kroger groceries would yield 1,000 points. And if you go one step further and actually buy Kroger brands when you’re at one of their stores, points accumulate faster. In that case, every $1 spent yields 3 points. So, again, $500 spent with the prepaid card on Kroger brand cereal and coffee filters would earn 1,500 points. All of this is to say that the more loyal you are to Kroger, the quicker you’ll be rewarded – notification of rewards come automatically via email.

    For the moment at least, using the Kroger REWARDS card outside the grocery center can save you a bit when you fill up your car – at a Kroger Family of Stores Fuel Center, naturally. There, using your card to purchase gas saves you $.05 per gallon.


    Just Rewards?

    To be clear, there’s not a lot of reinventing the wheel when it comes to the design of prepaid debit card reward programs. The formula is simple: the more you use your card, the more offers and cash back you’ll receive. In that way, the NetSpend Payback Rewards card is squarely in the mainstream, albeit with a few exceptions. For instance, those who use the card receive offers from merchants, which they can redeem. Additionally, NetSpend offers a referral program. Whenever a family member or friend loads at least $40 onto their new card, you’ll receive a $20 credit.

    The structure of the NetSpend program brings up an issue that is important to consider with all prepaid debit card rewards – that of fees. Or, to be more specific, what is the best card plan to choose if you don’t want fees to eat up all you would earn in rewards? With NetSpend, for instance, choosing the Pay-As-You-Go option, which has no monthly fee, seems unwise if your idea is to make lots of purchases and reap lots of rewards. With that plan, you pay $2 every time you make a PIN purchase and $2.50 for each ATM withdrawal, plus whatever the ATM owner charges.

    NetSpend also offers a FeeAdvantage Plan, where, for $9.95 per month, PIN purchases are free. And if you start depositing $500+ monthly to your account, you qualify for the NetSpend Premier FeeAdvantage Plan, which works the same way as the FeeAdvantage Plan but costs only $5 per month. Whatever you choose, be sure to pay close attention to the fees you have to pay as you work your way towards the rewards. A reward doesn’t look so good when you have to pay big bucks in fees just to get it.

    For more information on NetSpend’s purchase plans, click here.

    For more information on the NetSpend rewards program, click here.


    The Social Network

    Like its competitors, the AchieveCard is set up in a way that you can probably recite in your sleep at this point. Reward points are earned by using the card for purchases. What’s unique, though, is that the bank incorporates social media into its point structure. In other words, you can earn points by going on Facebook and championing the card.

    The following table explains the AchievePoints program; it can also be found here.

     

    How do I get AchievePoints? How many? Tips:
    Make Purchases
    Credit Purchases (Signature) 3 points for every $1 spent To earn the most points, always select CREDIT instead of DEBIT at the register. It’s that easy!
    Debit Purchases (PIN) 1 point for every $1 spent
    Monthly Bonuses *Bonus Points are awarded on the 5th of each month, for the previous month’s activity
    Load at least $1,000 1,000 Bonus Points This is DOUBLED if you load with Direct Deposit.Ex: Direct Deposit $1,000 = 2,000 bonus points!
    Make at least 30 purchases 1,000 Bonus Points The more you buy, the more points you get… Aim to use your card at least once per day!
    Keep your account in good standing Up to 10,000 Bonus Points You pay your monthly maintenance fee, we give you a bonus! 1,000 points your first month, 2,000 points your 2nd month…capped at 10,000 bonus per month after month 10.
    Extras
    Facebook “Like” 5 points for every item you click the “Like” button This is one of the EASIEST ways to earn points! Simply visit the AchieveRewards website, click on an Auction or Sweepstakes Item and Click “Like” or “Share!” You may only like/share each item once, but new items are posted EVERY DAY!
    Facebook “Share” 10 points for every item you “Share” on Facebook

     

    Smarty Pants

    When it comes to the kind of fees that can really eat into your rewards, SmartyPig’s MasterCard Cash Rewards Card has some real advantages. Yes, there is an initial one-time $9.95 charge for the card. But after that, all PIN and POS signature purchase transactions are free. ATM transactions still have fees, but there are no monthly fees AND NO purchase transaction fees.

    You have to opt-in to SmartyPig’s rewards program but once you do you will receive an exclusive, reloadable card and can use it everywhere MasterCard is accepted. The reward: SmartyPig makes it very simple and gives you a flat 1% back on all purchases. You can deposit the cash boost into a SmartyPig goal – which allows you to put away money for a specific goal – or keep it on your card. For more information about the SmartyPig savings program, see the Smarty Pig overview page.

     

     

  • Pros and Cons of Prepaid Debit Cards

    Pros and Cons of Prepaid Debit Cards

    Don’t believe the hype about prepaid cards. But don’t believe the doomsayers, either

    We live in a world of incessant hyperbole. The latest version of the iPhone? Best invention ever. The current members of Congress? The most corrupt and feckless in history. And let’s face it, advertising and promotion is based largely on inflated claims such as these, and that includes the efforts companies use to pump up interest in prepaid debit cards. To hear card issuers describe them, prepaid cards are the most convenient, reliable and safe financial products ever conceived. But that is, of course, hyperbole. The truth involves a great deal more nuance. There are, in fact, some real benefits, especially for people who don’t have or can’t get traditional credit cards. There are also significant red flags with prepaid cards, ones that any consumer should be aware of. So all hyperbole aside, let’s take a look at a few of the good, bad and ugly qualities of prepaid cards.

    The Upside

    • Easy, easy, easy. One of the main reasons people carry around credit and debit cards in their wallets is because it’s so darn easy to use them. Accepted virtually everywhere – at restaurants, shopping malls and even parking meters – plastic is simply more handy than cash. Prepaid debit cards provide that same convenience, including being able to get cash when you have to have it from ATMs all around the world.
    • Under your management. With features like online account management and email alerts when you’re close to exhausting your available funds, prepaid cards give you easy control over how you spend your money. They’re also simple to replenish via direct deposit or by using a credit or debit card.
    • Web ready. Try logging on to Amazon and buying a book or DVD with cash. Uh, it doesn’t work. Online retailing is exclusively the domain of those who have plastic. Thankfully for those who don’t have a credit card, prepaid cards can be your portal to online purchases.
    • Safety first. There’s no need to walk around with large wads of cash when you have a prepaid debit card. Importantly, and unlike cash, losing your card doesn’t mean the money is gone forever, especially if you report the loss immediately.
    • A snap to get. Unlike credit cards, there’s no credit check if you apply for a prepaid card. Just sign up, fund the card and go.

    The Downside

    Just like any other means of payment, prepaid debit cards possess a number of disadvantages. Here are a few.

    • Fees, fees, fees. Although they vary from card to card, fees are inevitable. Whether it’s a monthly account maintenance charge or getting dinged to withdraw money from an ATM or even to add cash to your card, there’s no way around at least some fees. And if you use your card a lot and its fees are onerous, that amount can pile up quick. Which is why being a savvy, conscientious comparison shopper is vital.
    • Not earning credit. One of the main reasons consumers gravitate towards prepaid cards is because they can’t get a credit card. But relying on a prepaid card will do nothing to help you build the sort of credit history you need to eventually get one. Since the money to fund a prepaid card is, by definition, given upfront, there are no repayments and hence nothing to report to the credit bureaus that track that behavior. If you want to build credit, look into a secured credit card.
    • Not yet ubiquitous. Even though prepaid cards are gaining in popularity, they are not yet universally accepted at all stores. It’s always best to check with a merchant before you make a shopping trip.

  • Dave Ramsey Chimes In On The Rise of the Prepaid Debit Card

    Dave Ramsey Chimes In On The Rise of the Prepaid Debit Card

    One would only need to turn on their television to know that prepaid debit cards are on the rise.  Added to the mix is a growing crop of celebrities endorsing one card or the other.  Prepaid Debit cards are popping up everywhere with uses ranging from tax returns to IRAs, but so are the fees associated with them.

    According to a recent article by Dave Ramsey, depending on your card of choice, you might be charged for any of the following:  buying the card, monthly maintenance, uploading money, inactivity, ATM withdrawal, card decline, making a purchase in-store or online, speaking with a customer service representative, and even using the automated customer service system.  Some cards even charge you $.50 just for checking your balance.  While most acknowledge at least seven different fees, some cards have as many as fifteen regular fees at nearly $3 a pop, these charges add up fast.

    Users are expected to load over $200 billion dollars onto prepaid debit cards this year alone.  Originally targeting people without bank accounts, Ramsey believes most cards are taking advantage of the poor and financially struggling, much like “their destructive cousin, the payday loan.”

    There is simply no substitute for budgeting and smart money management.  Whether it’s a checking account or a prepaid debit card, it pays to shop around.  Here at www.BestPrepaidDebitCards.com, we take all the guesswork out of the process to help you get the best deals available to you.

    Dave Ramsey is the founder of The Lampo Group.  He specializes in counseling families hurting from the results of financial stress and teaches how recognizing money myths and replacing them with truth is a powerful way to take hold of your greatest wealth-building tool:  your income.

    For more from Dave Ramsey, visit http://www.daveramsey.com/blog/pre-paid-debit-card-uprising?et_cid=2450840&et_rid=0&linkid=.

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

  • New BlueBird Prepaid Debit Card Now Offering Checks

    New BlueBird Prepaid Debit Card Now Offering Checks

    Since American Express launched the BlueBird Prepaid Debit Card, it has offered a fabulous product for the unbanked.  Starting out as a prepaid American Express debit card, it serves many of the same functions of an online checking account.  Working in concert with WalMart, users can load deposits free of charge, make ATM withdrawals, use online billpay, track spending and set limits, all without the extra fees banks often charge.

    Adding even more benefits to their product, BlueBirds now offer its users the ability to order physical checks right from their online account.  Though the website shows fees associated with ordering physical check, checks are actually free until May 21st.  Shipping is also free.  With this new move, American Express has effectively turned 4,000 WalMart stores into bank literal branches.

    In some ways, the BlueBird is actually better than a traditional checking account without the extra fees piled on since the passage of Dodd Frank Financial Reform Bill.  According to American Banker, “American Express (AXP) has just given its checking account alternative, BlueBird, more bank-like checking account features.  It has added FDIC insurance, increased the amount of money a customer can place in an account and added physical checkbooks.  The New York credit card company said Bluebird customers who can already deposit checks by snapping a picture from their smartphones, electronically pays billers and send cash to friends, can now place up to $100,000 in an account at any one time.”  Funds received from BlueBird are moved to Wells Fargo within 24hrs, allowing the funds to be protected via FDIC insurance coverage.

    For more information on the American Express BlueBird Prepaid Debit Card, visit www.bluebird.com.

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

  • Mossy Oak Prepaid Debit MoneyCard (Walmart)

    Mossy Oak Prepaid Debit MoneyCard (Walmart)

    Note! This card does NOT help you build credit. Click here to compare secured credit cards (which are similar to prepaid cards) that help you build or rebuild your credit.

    Also, a few secured cards do not charge annual or monthly fees, unlike the monthly fees charged by prepaid cards. (Ad Link*)

    By Shane Tripcony
    In December 2012, the Mossy Oak Walmart MoneyCard made its debut at nearly 2,000 participating Walmart stores nationwide. The prepaid Debit MasterCard is issued by GE Capital Retail bank with program management provided by Green Dot Corporation. The Mossy Oak card is reloadable and helps users manage their money conveniently and safely without the worry of overdraft fees or penalties. The card does not require a credit check or bank account and can be used anywhere Debit MasterCard ® is accepted. Reloading is easy, with cash and checks at Walmart stores or online at walmartmoneycard.com.

    Debuting during hunting season, the Mossy Oak Card, features the Break-Up Infinity ® camouflage design. The Cards can be found on sale at participating stores in the Walmart MoneyCenter, in the check-out lanes, as well as in the hunting section of Walmart participating stores.

    “It makes perfect sense, with all the offerings Walmart has for hunters and outdoors enthusiasts, that there is a Mossy Oak camouflage card option,” said Chris Paradise, Senior Vice President/Chief Sales Officer at Mossy Oak. “Walmart produces many specialty cards and now there’s one for hunters!”

    Mossy Oak is owned and operated under its parent company, Haas Outdoors, Inc. The mossy oak patterns can be found on a multitude of products worldwide. Green Dot is a publicly traded bank holding company primarily regulated by the Board of Governors of the Federal Reserve System. For more information on Green Dot, visit greendot.com.

Prepaid Debit Card Reviews, Complaints, Etc