Prepaid Debit Card Reviews, Complaints, Etc

Tag: feature

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 This page was originally published a few years ago and is no longer being updated in 2021.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
What is A Prepaid Debit Card? Glossary & Common Terms

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 comments on What is a Prepaid Debit Card? (see below) – this site is powered by you!

Courtesy of Linda Sherry, Director of National Priorities for Consumer Action, here is a comprehensive list of fees associated with prepaid debit cards.

by Lucy Lazarony

Looking for a new Debit Card, then you should check out the new award-winning No Fee Chime Visa Debit, (Ad Link) which can managed entirely from your smartphone and charges no overdraft fees, no monthly service fees and no transfer fees. No minimum balance is required and Chime features over 38,000 fee-free MoneyPass® and Visa Plus Alliance ATMs (there is a map of all fee-free ATM’s in the app).

This is the best and cheapest alternative to prepaid cards we have seen since we started reviewing prepaid cards over 5 years ago. 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 and clicking Get Started– over 3 million customers couldn’t be wrong. 🙂

What is a Prepaid Debit Card? Glossary and Common Prepaid Debit Card Terms.

Purchase fee. This is a one-time charge for buying the card, generally in a retail location.

Activation fee. A one-time charge that is also known as an opening fee, initial load fee or set-up fee, can range from free to $30 or more. This is a fee that must be checked carefully, particularly if you also have to pay to buy the card (see purchase fee above).

Monthly “maintenance” fee. This is a common fee that can vary widely, up to $10 per month; may be reduced or waived if monthly reload minimum is met or you set up direct deposit; some cards may also charge an annual fee.

Reloading fee. This fee is charged for adding funds to the card, which can vary by type or source of funds (cash, for example); third-party fees for cash loads made at agents (such as a participating chain of stores) also may apply.

Funds transfer fee. This kind of fee may be charged on certain funds transfers, such as from one card to another or from a bank account to the card.

Purchase transaction fee. This fee may be waived with a minimum number of transactions in the month or with direct deposit; may be charged on debit (personal identification number, or PIN) transactions and not on credit (signature) transactions, or vice versa.

Click HERE for our current ratings of the Best Prepaid Cards including the Best Overall No Fee Visa Card and see how this card compares to others.

Denied transaction fee. This fee may be charged if you try to make a purchase or an ATM withdrawal that exceeds your account balance.

Overdraft (or shortage) fee. This type of fee is charged by the relatively few cards that will allow you to spend more than you have loaded on the card; typically ranges from $10 to $25 or more.

Cashier withdrawal fee. This fee may be charged when cash is withdrawn at a bank or an agent location.

ATM withdrawal fee. A fee charged for withdrawing money from an ATM (unless the card offers free withdrawals at participating ATM locations or a certain number of free ATM withdrawals per month); another, separate fee of $1 to $3 is taken by most ATM owners/operators.

Balance inquiry fee. This fee may be charged for getting your balance statement at an ATM.

Foreign currency conversion fee. This type of fee is charged if you use your card outside the U.S. (typical for credit and debit cards, too).

Inactivity fee. This fee may be assessed if you don’t make at least one transaction in a certain period (typically 60 or 90 days).

Card replacement/reissue fee. This fee may be charged if your card is lost or stolen.

Paper statement fee. A type of fee charged for requesting a paper statement rather than viewing your statement online.

Customer service fee. Some card issuers charge this fee when you contact a live customer service representative (as opposed to using the automated help system); some cards may even charge a small fee for using the automated phone system.

Closure fee. This type of fee is charged when you close the card.

Other Related Reviews and Resources That Might be Helpful:

Click HERE for our current ratings of the Best Prepaid Cards including the Best Overall No Fee Visa Card and see how this card compares to others.

April 20, 2020
For Prepaid Cards, Choose EMV Chip Cards, A Smart Card All Around

By Curtis Arnold

Besides the thieves themselves, the main culprit to emerge from the recent heist of personal information from over 100 million Target and Neiman Marcus shoppers isn’t human at all. Rather, the unlikely villain is a decades old piece of technology known simply as the magstripe, or magnetic stripe, that graces the backs of billions of credit, debit and prepaid debit cards carried by Americans in their pocketbooks and wallets everyday.

But, there is an alternative on the way, the EMV chip card.

In a way that not even the most well crafted editorials or investigative journalism series could have accomplished, the collective anger spawned by millions of consumers has focused a spotlight on the inability of magnetic stripe technology to safeguard the critical account and personal data it contains. “Basically, the magnetic strip contains all the data needed for credit card fraud,” says Lamar Bailey, Director of Security Research for Tripwire, a data security firm that works with companies like Visa, MasterCard and Safeway. “Unfortunately, these strips are very easy to read and duplicate and are a favorite target for a wide variety of financial fraud.”

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[button link=”#Comments” variation=”darkgrey”]We want your opinion![/button] What do you think of the recent security breaches? How safe do you feel your personal data is currently? What are your main concerns about using credit, debit or prepaid cards? We want to hear from you! Just add in your thoughts in the Comments section below!
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As difficult as the lesson has been to learn, there is now a more widespread understanding of the need to quickly embrace so-called smart cards. Also known as EMV or chip and PIN cards, they have been the standard in Europe for years and offer far greater identity protection than magnetic strips. Introduced in the 1990s in Europe, these so-called EMV cards take their name from Europay/MasterCard/Visa. As Robert Siciliano, the CEO of IDTheftSecurity.com, explains it, EMV chip cards contain an embedded microchip that is authenticated using a personal identification number, or PIN. “When a customer uses a smart card to make a purchase, the card is placed into a PIN pad terminal or a modified swipe-card reader, which accesses the card’s microchip and verifies the card’s authenticity. The customer then enters a four digit PIN, which is checked against the PIN stored on the card.”

This is another way of saying that smart cards are a tougher nut for identity thieves to crack – and a good explanation as to why global cyber criminals have set their sights on the U.S. It also means that, whenever possible, American consumers should choose a payment card that offers EMV chip protection. This is particularly true for the growing number of Americans who utilize prepaid debit cards.

While it’s true that the prepaid debit card industry has been exploding recently – Mercator Advisory Groups reports that Americans loaded $192 billion onto prepaid cards in 2012 – the mainstreaming of a product once favored primarily by those who couldn’t get bank accounts or credit cards has not yet been accompanied by stronger consumer protections. For instance, if a credit card is lost or stolen, federal law limits consumer liability to just $50, although most major card issuers offer zero liability. Federal law also protects debit cards, although limiting liability depends on a consumer quickly reporting a card lost or stolen. By sharp contrast, prepaid debit cards do not have blanket protection. The terms and conditions vary depending on the card issuer, with some being quite good and others nonexistent.

Because of that lack of protection, prepaid debit card users concerned about fraud can avoid having their accounts cleaned out by getting an EMV chip card. Unfortunately, these smart cards are not available everywhere – not even close. Some card issuers, such as the Members 1^st Federal Credit Union, do offer EMV chip reloadable prepaid cards. But as is the case with most debit and credit cards, a smart card option is not yet available. “EMV has not been popular in the US because of the high cost of replacing all the credit card readers and millions of credit cards,” says Lamar Bailey of Tripwire.

What can change that? For many credit and debit card issuers, the change is underway and expected to be complete by 2017. A combination of public pressure, regulation and simple self-interest could prompt the same move by prepaid card providers. “The technology in a magnetic stripe card has been hacked and decimated,” says Siciliano of IDTheftSecurity.com. “EMV for prepaid cards would bring them to the same security standard as credit and debit cards and more than likely open up a new market for card providers.”

Photo Information below.

Caption: By 2017, look for embedded security chips to be present in all US credit and debit cards. (Photo credit: Wikipedia)

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[button link=”#Comments” variation=”darkgrey”]We want your opinion! [/button] What do you think of the recent security breaches? How safe do you feel your personal data is currently? What are your main concerns about using credit, debit or prepaid cards? We want to hear from you! Just add in your thoughts in the Comments section below!
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February 10, 2014
UN Turns To Prepaid Cards

To better aid Syrian refugees, the United Nations is utilizing prepaid debit cards.

by Shane Tripcony

By every measure the ongoing civil war raging in Syria has been a humanitarian disaster. The United Nations estimates that over 100,000 people have died in the years long clash between supporters of President Bashar al-Assad and the various factions seeking his ouster.

Not surprisingly, millions of Syrians have fled the violence that has destroyed cities and towns across the country. An estimated 800,000 Syrians have made the trek to nearby Lebanon, where the United Nations World Food Programme is leading efforts to provide food and water.

As part of that initiative, the UN Food Programme has reportedly decided to utilize MasterCard prepaid debit cards. According to a story on the website, Mashable, the UN is set to begin distributing the cards; each loaded with $27, with the goal of eventually getting one to each and every refugee. Each month the cards will be reloaded with an additional $27, an amount the UN believes is sufficient to meet the monthly nutritional needs of an individual.

The distribution of prepaid debit cards, which can be used to buy food from the 300 Lebanese stores that have agreed to accept them, will replace the UN’s use of both pre-packaged rations and paper vouchers.

UN officials say that the use of prepaid debit cards will provide many benefits. Refugees will no longer have to line up to receive coupons every 30 days and the local economy should get a boost from Syrian purchases. The cards also offer the promise of more self-sufficiency. “They’re just more independent that way,” Bettina Luescher, a spokesperson for the UN World Food Programme told Mashable writer, Colin Daileda. “They can get what they like for their families.”

The cards are also less susceptible to fraud, a MasterCard executive told Mashable, because they’re easy to track and require a UN issued ID to use. The UN has already piloted the use of prepaid debit cards in Lebanon, albeit with just 10,000 people in one town. But if the card works well in all of Syria, the UN plans to begin distributing them to the 300,000 Syrian refugees currently living in Jordan.

October 29, 2013
Changes To American Express Serve Cards

Starting in November, American Express Serve prepaid customers will be able to add cash to their accounts at CVS and 7-Eleven with no fees.

by Shane Tripcony

The competition to serve the millions of Americans lacking traditional bank accounts just got a little stiffer. On October 8, American Express announced significant new changes to how its Serve prepaid card works. Starting in November, Serve customers will be able to load cash to their accounts, for free, while shopping at over 14,000 CVS and 7-Eleven stores nationwide. Additionally, American Express Serve customers will also be able to add funds via direct deposit of a paycheck without incurring a fee. By the end of 2013, customers with a smartphone camera will be able to take a picture of a paper check and add that money directly into their account by using Serve’s mobile app.

In making these changes to how the Serve card functions, American Express declared that it was directly targeting the almost 70 million so-called “under banked” Americans. “Unfortunately, the traditional banking system is not easily accessible to large segments of the population, making managing money cumbersome and expensive for many,” says Dan Schulman, Group President of Enterprise Growth at American Express. “Today, we’ve added a number of new features to make the management and movement of money more affordable and convenient for everyone.”

In the past, individuals who did not have bank accounts have had to rely on check cashing or payday loan services. Many of which charge exorbitant fees or prepaid debit cards layered with charges for everything from adding money to an account to checking a balance. While there are still plenty of prepaid cards that charge high fees, more and more big financial players like Chase, U.S. Bank and PNC are now offering low-fee options.

The changes American Express has made to its Serve card are meant to address what it sees as the substantial charges that come with simply adding money to an account. Citing research from Javelin Strategy and Research, American Express says that 41 percent of under banked customers report paying between $3.00 and $3.99 to reload their prepaid cards. Depending on how often someone reloads their card, American Express estimates that utilizing Serve, which charges a $1 monthly fee, could save between $72 and $240 annually. The savings could be even greater if a Serve customer opts to use direct deposit or adds at least $500 to an account over the course of a month.

In addition to a variety of fee-free ways to add money to Serve card accounts, American Express also allows customers to withdraw money from MoneyPass ATMs for free as well as pay bills for free using Serve.com and the Serve mobile app.

October 22, 2013
Walgreen’s Launches A Prepaid Card

The drugstore chain puts a prepaid debit card at the center of its financial services options

by Shane Tripcony

Walgreen’s is already the place millions of Americans head to in order to pick up everything from deodorant to Halloween candy to prescription drugs. Now the nationwide drugstore chain is adding financial services, including a prepaid debit card, to its already lengthy menu of offerings.

On October 7, 2013 the Illinois-based retail giant announced that its new Balance Financial Prepaid MasterCard is available to customers in 250 Walgreen’s stores in Detroit, Milwaukee and Nashville. The company also said that the new prepaid debit card will be available nationwide by the end of the year.

In making a foray into the prepaid debit card market, Walgreen’s reiterated a reality that has already prompted so many other large banks and financial institutions to unveil their own products. The many Americans lacking traditional bank accounts need an alternative to cash transactions and ultra-high fee check cashing and payday lending services. “Millions of Americans do not have – or want alternatives to – traditional checking accounts and debit cards,” says Jason Dubinsky, Walgreen’s vice president and treasurer. “For them, Balance Financial will represent safety, convenience, value and rewards. With Balance Financial as our platform, over time we plan to add more features and functionality that give our customers even more powerful financial tools to get, stay and live well.”

In other words, the new Walgreen’s prepaid debit card is just the start. While Walgreen’s is already planning to offer Western Union Money Transfers and bill payment services in 2014, the details around the features of its prepaid debit card have already been set. Notably, the card will allow for no-fee ATM withdrawals for cardholders at most of the 8,000-plus Walgreen’s and Duane Reade stores nationwide. Balance Financial customers will also be able to check their account balance, move funds and view previous transactions on a website, mobile app or even at in-store kiosks. Like many other prepaid debit cards, Balance Financial can be reloaded for free via direct deposit. Also like similar products, the Walgreen’s prepaid card comes with a variety of fees, including a $2.95 account activation fee and a $2.95 monthly charge.

Where the new Walgreen’s card is somewhat different from its competitors is in how it is synchronized with the store’s customer loyalty program. Use of the Balance Financial prepaid card earns points for every dollar a customer spends at Walgreen’s. Users of the card can also earn points for in-store reloads and direct deposits, points that can be used for future savings and other benefits. Dan Caplinger, the financial website Motley Fool’s Director of Investment Planning, recently wrote that this is the “real genius of the Walgreen’s offering” because it encourages customers to stick with the drugstore and make repeat visits. “If it’s successful, then you can expect not only Rite Aid and other direct competitors to follow suit but also a broader set of retailers hoping to cash in on the same trend,” he says.

October 17, 2013