Prepaid Debit Card Reviews, Complaints, Etc

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  • Durbin Amendment Not Slowing Debit Card Marketing

    Durbin Amendment Not Slowing Debit Card Marketing

    With the estimated 42 million offers for new debit cards that hit American homes in 2012, it’s no wonder how debit cards remain the most popular plastic payment type among Americans. In 2012, debit purchase volume jumped 12%, versus an increase of only 8% for credit card purchases.

    Comperemedia reports that bank offers for new debit cards increased over 6%, despite the October 2011 Durbin Amendment which caps debit swipe fees and profitability for banks. While direct marketing volumes are up only slightly, it’s taken two years for banks to determine how to tackle debit cards, resulting in new ad content that has changed drastically. Consumers are now encouraged to use debit cards for security and convenience for everyday purchases. High value incentives have become a thing of the past, replaced by incentives with a much lower value while reward programs entice customers to take advantage of new card features.

    “Banks have a vested interest in increasing debit card usage, as increasing volumes will increase revenue,” said Susan Wolfe, VP of research at Mintel Comperemedia. “Getting customers to use their debit cards throughout their day could have a big impact in transaction volumes and thus the revenue.”

  • Can you Pay for Health Insurance with Prepaid Cards (Benefits and Problems)?

    Can you Pay for Health Insurance with Prepaid Cards (Benefits and Problems)?

    The Benefits and Pitfalls of Paying for Health Insurance with a Prepaid Debit Card


    By Lucy Lazarony

    2019 Update! According to Ihealthplans.com, at least within the individual health insurance Marketplace, insurance providers are required to accept money orders and pre-paid debit cards, which is good news for prepaid card owners. Providers do not have to accept credit card or debit card payments unless states make that a requirement (so varies by state), although many insurers currently accept all of these forms of plastic payment.


    New Popular No Fee Visa Debit Card (works like a prepaid card but with less fees):


    Chime is a new type of award-winning online card account designed to help people lead healthier financial lives (people with poor credit can apply too as there is no credit check). With Chime, you get a free (amazingly Chime never charges a dime in fees) Chime Visa Debit Card (a real debit card, not a prepaid debit card which usually have a lot more fees).

    Chime can be managed entirely from your smartphone. No overdraft fees. No minimum balance. No monthly service fees. No transfer fees. Amazingly, Chime charges no fees for their debit card. Over 38,000 fee-free ATMs, plus 30,000+ cash-back locations (use the Chime app to conveniently find free ATMs). 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. 🙂 (Ad Link)

    Original article from 2013 (kept for archival purposes): Accepting payment by prepaid card may vary from state to state and between insurers. Insurance companies prefer automatic bank drafts through a checking account, since this costs the least amount of money.

    You’ll be able to pay for new health insurance exchanges with a prepaid debit card.  A new rule released by the Department of Health and Human Services last month requires insurers participating in new health-insurance exchanges to accept payments from consumers by prepaid debit cards, cashier’s checks, money orders, paper checks and bank-account transfers.

    “The HHS rule just means that people without checking accounts can pay for exchange health insurance plans by getting a prepaid card,” says Linda Sherry, director of National Priorities for Consumer Action. “Several different forms of payment will be accepted by the exchanges, including prepaid cards, cashier’s checks, money orders, paper checks and bank-account transfers.”
    The exchanges are part of a new health insurance marketplace under the Affordable Care Act, also known as Obamacare. The marketplace is set to open on Oct. 1, when plan and pricing information will be made available to consumers and open enrollment begins, according to HealthCare.gov.

    Insurance coverage is set to begin on Jan. 1, 2014 and the open enrollment period extends all the way to March 31, 2014, according to HealthCare.gov.

    The addition of prepaid cards as a payment option make these new health plans more “convenient” to consumers without bank accounts, Sherry says. “Otherwise, an unbanked person would have to stand in line for a money order or cashier’s checks each month or quarter to pay for them,” Sherry says.

    Another advantage of paying for health care with a prepaid debit card is having an online record of payments and insurance for tax credits on insurance premiums, says Jeanne Hogarth, vice president of policy at the Center for Financial Services Innovation. “You might want to be careful of the card you choose so you can view it online,” Hogarth says.

    A study from Jackson Hewitt estimates that more than one in four uninsured Americans — about 8.5 million people — who would be eligible for Affordable Care Act tax credits on insurance premiums, do not have a checking account.

    When shopping for a prepaid debit card to pay for health care, take a close look at the fee structure of each card, advises Judith Rinearson, chair of the government relations working group of the Network Branded Prepaid Card Association.

    “Keep in mind that general use or general purpose prepaid cards often come in two different models. Some come with a monthly fee – similar to a monthly fee that might be charged by a bank for a bank account. Those fees are often less if the cardholder signs up for direct deposit of their wages or salary. If you anticipate using the card a lot, going for a card with a flat monthly fee model may save the most money,” Rinearson says.

    “The other model, often called “pay as you go,” does not have a monthly fee, but instead charge fees every time the card is used – such as a fee when the card is used to make a purchase or to make an ATM withdrawal. For those who intend to use the card only occasionally – perhaps for their monthly health insurance premium payment – this may be a better option.”
    Rinearson also recommends choosing a prepaid debit card with free balance inquiries and text messaging. “Personally, I like cards that provide free balance inquiries and access to online transaction data and text messaging,” Rinearson says. “And fortunately, I have found the majority of cards out there routinely do provide such services for free.”

    Here’s a short checklist from Rinearson for choosing a prepaid debit card:
    • Reasonable fees
    • Easy to access balance and transaction information
    • Access to cash not just at ATMs (where a fee is often charged) but also at the point of sale (where “cash-back” is often free of charge)
    • Protection against lost or stolen cards or unauthorized transactions

  • 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.

  • Tax Refund Cards

    Tax Refund Cards

    Try this as an exercise sometime. If you owe money to the Internal Revenue Service (IRS) or pay quarterly taxes, log onto your bank account to see just how quickly the check you send them gets deposited. It’s fast, very fast. And to be fair, the IRS is pretty speedy itself when it comes to issuing tax refunds.

    But just how fast the IRS gets that cash back to people depends on a few factors, including whether or not a return was filed electronically and whether a taxpayer has a bank account. In the case of people who have an account and opt to have their refund directly deposited, the wait can be as little as 10 days. For those lacking a bank account, though, the delay can be much longer, though the IRS says that it expects over 90 percent of refunds to be issued in less than 21 days this year. Still, if someone chooses to have the IRS mail them a check, the wait is longer to actually receive the refund and often includes a 5-day waiting period for the check to clear their banks. Additionally, if a refund check is lost, stolen or returned to the IRS as undeliverable, a replacement check cannot be mailed until 28 days after the original check was mailed.

    For those without bank accounts who want to receive their money ASAP – which is probably everyone, especially given that the average refund over the past few years has been about $3,000 – a prepaid debit card can help. Almost any prepaid debit card can be used to receive your tax refund via direct deposit. Some states, such as New York, also permit their tax refunds to be sent to prepaid debit cards as well. Some taxpayers may benefit from having their refund go to a prepaid card even if they do have a bank account; it can mean that a few thousand dollars doesn’t get lumped in with their regular spending rather than safeguarded for a specific project or purchase.

    Tax preparation companies like H&R Block understand the need some people have to get their refunds quickly and offer prepaid cards of their own. But as with any prepaid debit card, those used to receive tax refunds charge a variety of fees, including for withdrawing money and other activities. Indeed, H&R Block’s Emerald $2.50 to withdraw cash from an ATM and levies an additional $2.50 if an account is inactive for 3 months. Weighing whether the fees are worth the quick refund is an important part of deciding if a prepaid debit card is the right choice.

     

  • 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.

Prepaid Debit Card Reviews, Complaints, Etc