Prepaid Debit Card Reviews, Complaints, Etc

Author: Chris Warren

  • Debit Card Rewards Programs Help Consumers

    Debit Card Rewards Programs Help Consumers

    Debit card rewards have come and gone over the past few years. With credit cards, rewards and promotions are much more prevalent, but after the financial collapse in 2008, many banks got rid of most of their debit card promotions. But now banks are starting to bring the rewards back to attract new business as the financial markets improve.

     

    Check Out These 5 Debit Card Rewards Programs

    • Ally Perks: Ally is an online only bank that offers services such as checking and savings accounts, CDs and IRAs.  Customers who have checking accounts with linked debit cards are eligible for Ally Perks. With this program, you make qualifying purchases using the debit card, and the bank will automatically put money back into your account. These cash-back rewards can be substantial and add up over time. If you spend $100 on a qualifying purchase, Ally will deposit up to $10 back into your account, depending on the category of the purchase and the promotion at that time.

     

    • PerkStreet Financial Debit MasterCard: This program features a MasterCard debit card that offers up to 2% cash back on everyday purchases. The rewards are pretty simple. You get 1% back at merchants all over just for using the card and 2% from online purchases at selected merchants including Amazon, Apple and Best Buy.It also offers a rewards program called Power Perks. For every 22 Power Perks you redeem, you receive $20 cash back. Cash can be redeemed in increments of $20.  You can also redeem your perks for gift cards to retailers and restaurants including Amazon, Wal-Mart, Target, Applebee’s and many more. Each perk is worth $1 in gift card value. Card values may vary by merchant.

    So, to point out a little of the fine print: be aware of the following important notes about the program.

    • Online purchase bonus perks are limited to $2,500 in spend every calendar year.
    • You can earn 2% cash back in-store, when you have a Current Account Balance of $5,000 or more at: Walmart, Target®, Best Buy® & Apple® stores.
    • Offline purchase bonus perks are also limited to $2,500 in spend every calendar year.

     

    • BankAmeriDeals:  This is a recently launched program from Bank of America. You can log into your checking account online and see a tab that lists the currently participating local and national retailers.  The retailers change every few weeks, so it pays to check back regularly. Each retailer has its own reward structure, typically paying back a percentage of total sales. The rewards are then credited as cash right back to the customer’s account.  The system is simple and easy to use.  Prior to shopping at the merchant, remember to log on to your online account and “activate” the deal to your account by clicking the activate button.   hen just pay with your debit card at the merchant to receive your reward. Please note that you must “activate” the deal online before you shop at the merchant to earn the rewards for your purchases.
    • Logix:  Generous debit card reward options exist at Logix.  You can earn 1 point for every $1 using your Logix Debit Card. In addition, you earn 1 point for every $2 by purchasing by signing your name (rather than entering your PIN) with your enrolled Logix Debit Card. The rewards bank has gift cards and merchandise you order, using your points. The online rewards store offers merchandise including cameras, TVs and jewelry, as well as travel reservations and gift cards.  The debit rewards card is free with one of their checking accounts.  Checking accounts range from free accounts for teens to accounts with a monthly fee of $2.95 to $9.95.  These fees are fairly easily waived for items such as $100 per month direct deposit or hitting certain thresholds in balance on other interest bearing checking accounts.
    • Bank of America Keep the Change: One of the oldest programs, this is a very different kind of debit card rewards program. The system rounds up all of your transactions to the nearest dollar and then transfers the change difference to your savings account from your checking account. For example, if you spend $2.49, it will round the transaction amount to $3 and transfer $.51 to your savings account.  On top of that, the bank will match 100% of your transfer to savings (the $.51) up to $250 for the first three months of the program. This program is a no-brainer if you already have Bank of America savings and checking accounts with a debit card.

    You may be asking if you can earn the BankAmeriDeals rewards while “Keeping the Change”.  Unfortunately, according to the Bank of America website, purchases with rewards cards are not eligible for matching, so although you can be enrolled in both, if you use a rewards card, there will be no matching.

  • What Everyone Needs to Know About Consumer Rights with Debit Cards: Protecting Your Information

    What Everyone Needs to Know About Consumer Rights with Debit Cards: Protecting Your Information

    What everyone needs to know to stay protected

    Many frequent fliers can easily recite from memory the safety announcement flight attendants so cheerily pronounce before a plane lifts into the air. That’s because the instructions – which tell passengers where the exits are and how to strap on an oxygen mask – are repeated on every single flight. If only the same were true about the plastic in your wallet. Even though nobody will stand in front of you to explain the do’s and don’ts around using debits cards, reminders about how to use them safely — and what your rights are as a consumer — should be reviewed regularly.

    The reason is obvious. Debit cards potentially provide access to thousands of dollars, your dollars. This money may be in your bank account linked to your debit card, or a prepaid amount you allotted to a card. We know our rights with cash; the value printed on the bill is what it’s worth, that’s that. But with debit cards, it’s more complicated.

    Despite looking similar to credit cards – often bearing the familiar Visa or MasterCard logos – debit and prepaid debit cards should not be confused with credit cards. They fundamentally work differently. When you use a credit card, the card company pays the merchant, and then you are billed monthly, which you can either pay off entirely or as a percentage of the total. The credit card issuer charges interest on any amount of the balance you opt not to pay off. Debit cards are different. Purchases or charges are typically paid out right away, with the money being pulled from your account and sent to the merchant when you enter your PIN (personal identification number). Make no mistake, merchants are well aware of one major difference between credit and debit transactions; debit transactions have a lower transaction fee.

    Debit Transactions are Fast

    When using debit cards, be aware that the money is typically taken out of your account quickly. In most cases, debit is treated like cash or a check, whereas it can take up to a week for a charge to appear on your credit card account. With debit cards, the money may be taken from your account the same day you make a purchase. If you notice unauthorized debit transactions, your bank must investigate within 10 days of you notifying them. Also, upon notification, the bank must temporarily credit you the funds in question within 45 days. However, if their investigation does not identify any fraudulent transactions, the bank will assume the transactions are valid and will reclaim their money in full.

    Your Debit Cardholder Rights

    If you make a purchase online, the merchant is required to ship your order within their stated timeframe. But if none is specified, it must be shipped within 30 days of your order. You have the right to dispute charges on your debit card, but you have only a 60-day window to do so. It is a good practice to keep any receipts or invoices that arrive with your order. If an online receipt is given, print it or save it as a .pdf file to your computer, just in case you need it in the future.

    According to Dr. Mary Ann Campbell, who teaches personal and family finance at the University of Central Arkansas and runs the web site www.moneymagic.com, debit card holders have fewer protections than people with credit cards when it comes to liability. “The Electronic Fund Transfer Act governs losses from debit cards and ATM withdrawals,” she says. “The Federal Trade Commission has a sliding scale at their web site, FTC.gov. The quicker you alert someone of loss or theft, the less your liability.”

     

    Resolving a Dispute

    When you dispute a debit card charge, your bank will act as a liaison between you and the merchant. This is where a receipt can save the day. Printed receipts can go a long way toward proving you should have been charged only $10 when your bank statement shows a $100 charge. A mistake may be as simple as the merchant making a data entry error. Whatever the case, Campbell advises being both proactive and meticulous when it comes to documentation. “Once a dispute arises, begin to take dated notes. Obtain copies, screen shots, dated phone conversation summaries etc. to document your case,” she says. “Exhibit responsibility on your part to clarify why you are making a dispute and help reach a satisfactory solution by being clear about your expected solution within the law.”

    In the end, ensuring that all debit card charges are valid requires personal responsibility. You must be diligent about reviewing your bank statements and ensuring they match your receipts.  Mobile apps and instant notifications from the banks when your card is used can make keeping up a breeze.  You may even be able set up instant notifications for whenever threshold dollar amounts, such as $50 or $100, are processed using your card. That way, if you receive an instant message for a transaction you did not make, you can quickly respond and minimize your loss.

  • MasterCard Prepaid Gift Cards

    MasterCard Prepaid Gift Cards

    It’s a dilemma that the choosiest among us are bound to face. We receive a Target or Walmart or some other retailer-specific gift card from a friend or relative and, whether we tell anyone or not, just can’t find something we want. Instead of admitting to being a total prima donna, we just put the card in a drawer and forget about it. Avoiding that kind of wasteful situation is just what the MasterCard Prepaid Gift Card is meant to do. With worldwide acceptance at millions of locations, the recipient of one of these cards is never limited to what’s available in just one store. In fact, with the ability to use them for online payments and purchases, MasterCard Gift Card holders aren’t even limited to the brick and mortar world. Depending on the issuer, most gift cards can also be personalized with photos, a personal message, or the recipient’s name.

    For the most part, a MasterCard Prepaid Gift Card works just the way you would expect. The purchaser of the card selects a funding amount – one that cannot be added to later on – that cannot be exchanged for cash. Whether you opt to personalize the card is up to you, but each one carries the MasterCard logo and is accepted anywhere Debit MasterCard cards are accepted. Safer than an envelope stuffed with $20 bills and much more flexible than gift certificates, card recipients also have access to 24/7 customer service and balances are protected from unauthorized use.

    While that is all straightforward, there are some wrinkles to how MasterCard Prepaid Gift Cards – which are available at bank branch and retail locations as well as online and over the phone – work that recipients should know. Though many come already activated, you’ll need to check your card, receipt or packaging for any specific instructions. Also be sure to look at the front of the card to see if there is an expiration date; most don’t have them, but better to know whether it does right away. Users of these cards should also be aware of something known as a “split tender” transaction. This is when the purchase you’re making is for less than the value of the card. What normally happens in this case is you simply tell the cashier how much to deduct from the gift card and then provide another form of payment to make up the difference. Be aware that some merchants won’t do this and always know your balance ahead of time, since some stores won’t be able to access that information. Finally, don’t toss the card after you actually do make a purchase. If you opt to return an item, you’ll need to show the card to the cashier in order for the money to be credited back to you – remember, you can’t get cash by using gift cards.

  • Visa Gift Cards

    Visa Gift Cards

    What is a Visa Gift Card?  The Visa Gift card is a “non-reloadable prepaid” card with its initial value set by its purchaser which cannot be exchanged for cash.  A Visa gift card carries the Visa logo and are accepted anywhere the Visa Card is accepted.  They can be used in person at brick-and-mortar retail businesses or for online payments and purchases.   Many Visa Gift Cards are activated automatically upon purchase and can be used immediately upon purchase.  It may be necessary to activate the card if you plan on using your card online.

    The Visa Gift Card does not offer a line of credit.  Each time a purchase is made, the amount is automatically deducted from the balance on the card.  Most do not come with a pin number so it is important to use them as a credit card rather than a debit card and sign the receipt.  If the purchase is for less than the value of the card, the credit remains on the card until it is exhausted.  You must personally keep up with the balance on the card as the merchant may not have access to this information.

    Once your gift card has been depleted, it is always a good idea to keep the card until you know for sure you will not be returning any of the items purchased with the card.  If you do need to return items, the store policy may require that you present the card you used to make the purchase.

    If your gift card states “Valid only in the United States” on the front, your issuer has issued a Domestic Use Only card.  Although your gift card will not be accepted at locations outside of the United States, it’s welcome at millions of locations within the U.S. where Visa Cards are accepted.

    Visa Gift Cards cannot be used to withdraw cash from bank branches, ATM machines or for gambling purposes.

  • Gift Cards

    Gift Cards

    Many have opted for gift cards to help simplify their gift giving.  Most gift  cards have no expiration date and are typically not reloadable.  The card is generally for a fixed amount and cannot be exchanged for cash.

    A gift card may resemble a credit card, but does not offer a line of credit.  The card is identified by a specific number or code and is not usually embossed with an individual name, making it flexible and a great gift idea.  For security reasons, many of them have no value until they are activated by the cashier.  To thwart counterfeiting, the data is encrypted and the magnetic strip is often placed differently than on credit cards.

    They can be custom tailored to meet specific needs and a custom message or photo can also be added to personalize the card.  Additional fees may apply.

    Gift cards are vastly different from gift certificates.  Certificates are usually sold as a paper document with an authorized signature by a restaurant, store, or other individual establishment as a voucher for future products or services.  They typically require no electronic authorization and may or may not have an expiration date or administrative fees.

    An addendum to the Credit CARD Act of 2009 directs the federal government to create consumer-friendly standards pertaining to gift cards.  The new regulations prohibit retailers from setting expiration dates unless they are at least 5 years after the card’s date of issue or the date on which funds were last added to the card.  Retailers are also no longer able to access dormancy, inactivity, or service fees unless the card has been inactive for at least 12 months, and if fees are added after that period, the details of such fees must be clearly disclosed on the card.  Retailers are not allowed to levy more than one fee per month.

     

  • Prepaid Cards for Teens and Students

    Prepaid Cards for Teens and Students

    The Great Recession has produced a renewed dedication to financial literacy on all levels.  After the passage of the Credit CARD Act, many parents wondered how they were going to teach their kids to use plastic responsibly.  That’s where prepaid cards have come in.

    One of the most important things for parents and teens to watch out for when selecting the right card are the fees.  In lieu of interest rates credit cards carry on balances, prepaid cards can be riddled with fees.  As a responsible and engaged consumer, you should teach your teen to thoroughly examine fee schedules before signing on.

    Prepaid cards are a great alternative to cash allowances and offer convenience and security.  Your child can only spend the money that has been loaded onto the card and the funds are completely safe.  It’s a convenient way to manage and track spending in real-time and curb over-spending as they learn financial responsibility.

    Most cards allow the user to set up alerts when the card balance gets low and view  real-time transaction activity.  The card can also be suspended if it is ever misplaced or stolen.  Setting up direct deposits are often free  and available in real-time.  Instant loads for emergencies are also available when your child is away from home for added peace of mind.

     

Prepaid Debit Card Reviews, Complaints, Etc