Prepaid Debit Card Reviews, Complaints, Etc

Author: Tameka Riley

Is the GreenDot Prepaid Visa Debit Card a Good Deal or Bad?
Welcome to our site! Our editors have been covering the credit and debit card space for a total of 30+ years and we are proud to have been featured by the Wall Street Journal, CNN, etc. Your input is invaluable and we’d love to have your opinion as to whether the Green Dot prepaid debit card is a good deal (see below) – this site is powered by you!

Unlike almost all card comparison sites that only list cards that advertise with them, 85% of the cards on our site don’t pay us a dime.
How the Green Dot Reloadable Visa Debit Card Works

Just like many other prepaid debit cards, the standard Green Dot Prepaid Visa® Card (which is what this review will focus on) works like a bank debit card or ATM card. However, depending on what you load your Green Dot prepaid card to do, the working can vary a little. You can load the card to put money on other prepaid cards, debit cards or credit cards; and even to pay some specified bills.

Please Note! This page was originally published a few years ago and is no longer being updated in 2021. GreenDot is focusing on promoting their new and improved Go2Bank Cash Rebate Visa- Click Here for to More Info and to Apply Online in Just Mins! (sponsor link)

Now, depending on the service that you will be using your prepaid card to access, there are a number of benefits you may receive as compared to using bank cards. For instance, you can use the Green Dot card to get some discounts on online shopping. In some cases, you may also be rewarded with points for using the card.

However, please note that the card has a pretty high monthly maintenance fee of $7.95 if you do not do a monthly direct deposit of at least $1,000 (which is a high amount as well compared to other prepaid Visa cards). Also, there is a $1.95 fee to purchase the card (activation fee) and a cash reload fee of $5.95, which is high as well in comparison to other similar prepaid card offers (bad features).

Good Benefits of using the Green Dot Reloadable Visa Card

You can track spending on the go using the Green Dot mobile app.

You can apply for this prepaid debit card whether you have a bank account or not and you will not be subject to a credit check before you are provided with the card.

You will be able to fill other prepaid cards, debit cards or even credit cards easily with the Green Dot MoneyPak. On the same note, you can use the card to pay bills, withdraw cash from ATMs and even shop online.

You will have no long usage commitments. This means you can choose whether to use it or not.

You will not be subject to any penalty charges and overdraft fees.

Finally, the card is reloadable meaning that you can top up the money on the card using direct deposit, MoneyPak or even bank money transfer services.

Important Consumer Note!

The Greendot debit card does NOT help you improve your credit.

Registering for Green Dot Prepaid Debit Card

There are two ways to get a Green Dot reloadable Visa prepaid debit card. You can register online and setup your account or purchase a card at a retail location. Both options are simple. However, by registering online you can avoid the fee associated with purchasing a card in-store. You will be required to load the card before you can make purchases.

When registering, you may be required to submit some of your personal details including the provision of your social security number. After registration, you will be provided with a non-reloadable temporary prepaid card that you will use until you are provided with the reloadable prepaid card. It is important to note that the temporary card will not have access to some services like ATM usage, and it may be limited for use in the United States only.

As per the provision of Federal laws, Green Dot will have the responsibility of obtaining, verifying and recording relevant customer information that can be used to identify them (customers). Some of the basic information that Green Dot may require from you when registering for a Green Dot reloadable prepaid debit card include your name, date of birth, social security number and address.

Is the Green Dot Prepaid Visa Debit Card a Good Deal or Bad? (Summary)

Please Note! This page is no longer being updated in 2021. GreenDot is focusing on promoting their new and improved Go2Bank Cash Rebate Visa- Click Here for to More Info and to Apply Online in Just Mins! (sponsor link)

The Green Dot prepaid card may be a good deal for you, but be sure to review our other prepaid card offers which have less fees, such as the new no fee Chime Visa below, and different benefits. The monthly membership fees on Green Dot are high if you don’t have a direct deposit every month.

The bottom line is that it may or may not be the best reloadable card for you depending on how you use it. You should compare prepaid cards carefully to be sure you choose the prepaid card that’s most cost efficient for you.

Related New Visa Card to Compare to Green Dot (Works Like Greendot Debit but has No Fees):
Chime is a new Visa card that is amazingly free (unless you use the card outside of their large ATM network). This is best alternative to a prepaid card that we’ve seen in 5+ years and offers all of the benefits of traditional bank account.

People with poor credit can apply too as there is no credit check (No ChexSystems either). Chime can be managed entirely from your smartphone. No hidden fees. No overdraft fees. No minimum balance. No monthly service fees. No transfer fees. Over 38,000 fee-free ATMs, plus 30,000+ cash-back locations.

And for a limited time, earn a Cash referral bonus of $50 when you tell your friends and family members about Chime and they sign up (and they’ll earn $50 too)- details within the app after you apply! Click for more info.- you can apply online in just 2 mins with no obligation. Start by simply entering your email address and clicking “Get Started”– over 3 million customers couldn’t be wrong. 🙂 (Referral Link)

Please read our review of another Green Dot offer here:

Full Green Dot Prepaid Unlimited Cashback Debit Card Review
January 19, 2021
Risky New Bank Card Technology – Is Your Card At Risk

It sounds like a great idea. A host of new credit and debit cards issued by big financial players like Chase and MasterCard come armed with small computer chips and radio antennae that allow consumers to make payments by literally waving their plastic over a card reader. But according to a story in Consumer Reports Magazine, in exchange for the convenience of these so-called contactless cards their holders face increased risk of being victimized by thieves.

Here’s the main problem: the very same technology – often a radio frequency identification, or RFID, chip – that makes it such a snap to hand over debit or credit card information to a merchant is also what makes it easy for a thief to lift those vital numbers themselves. That’s because criminals need only to get their hands on the sort of card reader stores use, which is easy because they sell for less than $100. Armed with a reader, a thief must only get within a few inches of a victim’s card in order to swipe the account number and expiration date, which can then easily be transferred to blank cards. Unfortunately, that means a crook can start making purchases with a counterfeit card, even if a victim still physically has theirs in their wallet or purse.

So how do you know if your cards use this technology? Chase cards have labeled their contactless cards “Blink,” MasterCard’s are called “Pay Pass,” and others simply have a symbol consisting of four curved lines. There are plenty of people who have one. Citing The Nilson Report, a newsletter, the Consumer Reports story says 35 million contactless cards are in circulation in the U.S. alone.

If you do have a contactless card, protecting yourself is not necessarily easy. There are wallets with shields that market themselves as RFID blockers. Although they can make it more difficult for an electromagnetic reader to swipe your account information, they don’t entirely block the transmission of card data. Another option is a protective sleeve made out of duct tape and lined with aluminum foil. Consumer Reports tests show that approach was superior to many options available for purchase but still didn’t offer complete protection. Probably the best method of protection is to ask for a card that doesn’t have this technology.

Representatives of the credit and debit card industry insisted to Consumer Reports that contactless cards are safe. Chase spokesman Paul Hartwick told the magazine that the security codes on its contactless cards are designed to change with every transaction so that even if a card were compromised it would work for only one fraudulent transaction.

The Smart Card Alliance, an industry group, maintains that contactless card technology deployed by American Express, Discover, MasterCard, and Visa is secure and that there have been no reports that consumers have been victimized. American Express says its contactless cards do not reveal the card account number, and Consumer Reports’ own tests supported this assertion.

According to Kevin Fu, a University of Massachusetts at Amherst assistant professor, the absence of a flood of fraud reports linked to the cards is not proof of their security. Because the contactless cards in circulation in the U.S. represent only 3.5 percent of the total debit and credit cards in use, they have not yet presented a big enough target to lure many crooks, especially when traditional magnetic stripe cards are so easily counterfeited.

September 11, 2013
City Embraces Gift Cards – Iowa City turns to gift cards to boost downtown businesses

Keep Austin Weird. Many people don’t realize that the slogan that is now so closely associated with the quirky capital city of Texas was originally coined as a rallying cry for citizens to favor local businesses over national chains with their spending dollars.

Austin’s efforts to bolster local businesses has been successful enough that other cities, like Louisville, Kentucky, have swiped the exact same phrase and used it as a way for restaurants, bars and clothing stores to brand themselves. Now there’s another way for businesses to band together to encourage their friends and neighbors to patronize their shops: by starting a gift card program.

According to a story in The Daily Iowan, that’s exactly what businesses in the Downtown District of Iowa City did this past Aug. The idea was the brainchild of the Downtown District, which cited the success of other cities like Des Moines in offering a single gift card that can be utilized at numerous businesses in a small geographic area.

In her story, reporter Gabriela Dunn writes that the gift card program cost $7,000 to launch and that 85 of 280 downtown businesses have agreed to accept the cards. According to Betsy Potter, the Downtown District operations director, local businesses have been vocal in their desire for a gift card program to be started. “The initial reason for the program was that we heard from a lot of our businesses that a downtown gift card would be beneficial for them,” Potter told the newspaper, which chronicles events in the hometown of the University of Iowa. “We got almost weekly calls asking if there was a community gift card.”

So far, only four people have signed up to get a card, which cost $1.50 to activate. But Potter said that her organization has yet to do any marketing and was unconcerned about the meager initial response. Still, Patrick Barron, a University of Iowa economics lecturer, told the newspaper he was skeptical about the program’s prospects. “Frankly, looking at it from a customer perspective, I don’t see why I would buy a card if I don’t get a discount or incentive.”

September 10, 2013
Risky New Bank Card Technology – Is Your Card At Risk?

Though it may be convenient to pay with a wave of your credit or debit card, Consumer Report’s Andrea Rock says so-called contactless cards make your personal information vulnerable. Whether you know it or not, your credit or debit cards might contain a tiny computer chip and radio antennae to transmit account information from your card, even when you’re not shopping.

Thieves can steal your credit card information from only a few inches away using a card reader that sells for less than $100. By simply transferring your account number, expiration date and security data to a computer and transferring it to blank cards, a counterfeit can be made of your card. Thieves can then make successful transactions using your “card” while it’s still in your wallet.

So how do you know if your cards use this technology? Chase cards calls their contactless cards “Blink”, MasterCards uses “Pay Pass” to identify its contactless cards, and others simply have a symbol consisting of four curved lines like the one shown below.

An industry newsletter, The Nilson Report, says 35 million contactless chip cards are in circulation in the United States alone. The cards are touted as being convenient, but are vulnerable to skimming without ever leaving your wallet.

The technology is active weather you know you have it or not. Shields of wallets marketed as RFID-blocking devices can make it more difficult for someone with an electromagnetic reader to read your cards, but they don’t entirely block transmission of card data. Another option is a protective sleeve made out of duct tape lined with aluminum foil. Tests show that it worked better than many of the ones you can buy, but even that didn’t block the signal completely. So while waiving your card is easy, making sure it’s secure is not. There’s not much you can do but ask your bank to replace the card with one that does not have this technology.

Chase spokesman Paul Hartwick says the security codes on its contactless cards are designed to change with every transaction, as they are with most RFID-enabled cards, so that even if a card is counterfeited, it would work for only one fraudulent transaction.

“If I put a reader next to a turnstile at Grand Central Terminal at rush hour, I could probably capture data from 5,000 cards that evening, and what you’re getting from each one is enough to initiate a transaction,” says Mark Rasch, a former Justice Department computer-crime prosecutor who serves as director of cybersecurity and privacy consulting at CSC, a business technology firm. “Moreover, repeatedly scanning a card that is lost, stolen or intercepted in the mail produces multiple security codes,” Paget says.

The Smart Card Alliance, an industry group, maintains that contactless card technology deployed by American Express, Discover, MasterCard, and Visa is secure and that there have been no reports of consumers been victimized. American Express says its contactless cards do not reveal the card account number, and demonstrations supported this.

According to Kevin Fu, a University of Massachusetts at Amherst assistant professor, the absence of a flood of fraud reports linked to the cards is not proof of their security. Because the contactless cards in circulation in the U.S. represent only 3.5 percent of the total debit and credit cards in use, they have not yet presented a big enough target to lure many crooks, especially when traditional magnetic stripe cards are so especially counterfeited.

For more information, visit:

http://www.consumerreports.org/cro/magazine-archive/2011/june/money/credit-card-fraud/rfid-credit-cards/index.htm

September 5, 2013
FTC Charges Marketers with Deceiving Small Businesses

The Federal Trade Commission has charged an operation that sells credit and debit card payment processing services to small businesses with violating federal law. The FTC seeks to halt the allegedly illegal practices and return money to victims.

The defendants are Merchant Services Direct, LLC (MSD), also doing business as Sphyra, Inc., Boost Commerce, Inc., Generation Y Investments, LLC., Kyle Lawson Dove; and Shane Patrick Hurley. The Washington State Attorney General’s Office has simultaneously filed an action against these defendants in the Superior Court for Spokane County, Washington.

According to the FTC’s complaint, MSD agents also dupe customers into leasing new card processing terminals for two to four years, by falsely claiming they are either free, or that their current “swipe” terminals are outdated or incompatible with its services. Agents then persuade merchants to sign fine-print, binding contracts falsely labeled as applications they are told can be cancelled at any time. Victims soon discover their new lease obligation after being billed while still owing thousands of dollars on their previous lease.

Defendants also tout on various versions of their website “Guaranteed Lowest Rates,” claiming merchants could “save 30%” with “whole sale [sic] processing” or have “anywhere from 20% to 30% savings when switching to” MSD. According to the FTC, there are no wholesale rates, as third parties process card payments, not MSD. As alleged in the complaint, those who call MSD’s customer service department reach employees who either won’t help or promise to waive fees and issue refunds, but do not. Customers who were promised they could cancel the “applications” they signed with no penalty are charged substantial cancellation fees, according to the FTC’s complaint. Generally, only in response to complaints filed with the Better Business Bureau and state attorneys general have the defendants refunded money or waived fees.

The Commission vote authorizing the staff to file the complaint was 4-0. The complaint was filed in the U.S. District Court for the Eastern District of Washington. In addition to filing the lawsuit, the FTC has sought a court order immediately halting the unlawful practices along with an order freezing the defendants’ assets and appointing a receiver over the corporate defendants.

The FTC acknowledges the assistance of the Washington State Attorney General’s Office and the Better Business Bureau of Eastern Washington, North Idaho, and Montana.

For more information, visit: http://www.yumanewsnow.com/index.php/news/latest/3872-ftc-charges-marketers-with-deceiving-small-businesses-into-buying-credit-debit-card-processing-services-and-equipment

September 2, 2013
Swipe-Fee Rule Rejection Helps Merchants and Banks’ Cost

After winning a court ruling on claims they were over charged billions of dollars under and unlawful rate set by the Federal Reserve, retailers battling banks over debit-card transaction costs may soon benefit from lower fees. In Washington, U.S. District Judge Richard Leon ruled on Tuesday that in setting the cap on debit card transaction fees at 21 cents, the Federal Reserve considered data it wasn’t allowed to use under the Dodd-Frank law and neglected to bolster competition in card networks.

“The board’s final rule not only fails to carry out Congress’s intention; it effectively countermands it!” Leon wrote in his ruling.

Before Federal Reserve regulations cut back on perks such as reward programs and free checking to soften the blow, Lenders collected about $16 billion annually from swipe fees. Unless overturned, the decision will force regulators to revisit rules that bankers said would cost them 45% of their swipe-fee revenue.

“In effect since October 2011, the Fed’s rule will stay in place until the central bank drafts new regulations or interim standards,” Leon said.

Frank Keating, the president of the American Bankers Association, said the decision “will harm banks of all sizes and make it more difficult for institutions to serve their customers.” “The price controls enacted as a result of the Durbin Amendment served one purpose – further lining the pockets of our nation’s big-box retailers at their own customers’ expense,” Keating said in a statement. “It was – and still is – all about trying to help retailers increase profit margins while providing no real benefit to consumers.”

Merchants previously paid banks an average of 44 cents per transaction. The Fed first proposed cutting the sum to 12 cents before settling on 21 cents after bankers complained.

“Tuesday’s ruling will lead to lower interchange rates for billions of debit card transactions each year,” said Durbin, who filed a brief in the case supporting the retailers. “The Fed’s 2011 decision to bend to the lobbying by the big banks and card giants cost small business and consumers tens of billions of dollars and did not do enough to rein in the anti-competitive, anti-consumer practices of Visa and MasterCard”.

Leon, who said the Fed rule raised costs for debit transactions under $12, said he was inclined to give the Fed “months, not years” to rewrite the rule.

“The starkest, most powerful evidence of how absurd this rule was is that it resulted in a price increase,” Jeffrey Shinder, an attorney at Constantine Cannon LLP in New York who filed a brief for a group of retailers including 7-Eleven Inc. and Wendy’s Co.

The case is NACS v. Board of Governors of the Federal Reserve System, 11-cv-02075, U.S. District Court, District of Columbia (Washington).

For more information, visit: http://www.bloomberg.com/news/2013-07-31/fed-s-debit-card-swipe-fee-limits-rejected-by-u-s-judge.html

August 31, 2013