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.
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.
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.”
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 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
If you find yourself among the unbanked or under-banked a prepaid debit card may be the checking account alternative you are looking for. Suze Orman has recently launched her Approved Card – a prepaid debit card that is supposed to be better than the competition. But is it really? Does it have low or no fees?
Suze Orman says about the Approved Card, “It’s the single most important thing I’ve done in my whole career.”
She says it’s a better way to bank.
It is safer than cash, comes with no credit checks, no check cashing fees, no bank account required, no overdraft fees, no interest charges and it is easy to load and use.
The Appoved Card (http://www.theapprovedcard.com) also comes with free identity theft protection, free Transunion credit reports, credit scores and credit monitoring. These features are not seen on many of the best prepaid debit cards. You can expect to see services like this included because Suze Orman is a big proponent of keeping an eye on your credit report and score.
So let’s talk about getting this prepaid debit card’s fees. You will have to pay $3 to purchase it. This fee is lower than most other prepaid debit cards. And then you have a $3 monthly account maintenance fee with the first month waived. Compare this to other cards which can run from no cost per month all the way to $9.95 a month.
You can get free ATM withdrawals at over 35,000 Allpoint locations for the following 30 days you make a Direct Deposit of $20 or more. You can find these ATMs at places like 7-Eleven, CVS, Costco, Kroger, Target and Walgreens. Otherwise you will have to pay a $2.00 fee.
You also get free online bill pay and a free additional card along with no activation fee.
You do not have to pay a fee to purchase with a signature or PIN transaction.
You also get one free live customer service agent call per month and $2.00 per call after that.
If you like to receive a paper statement that will cost you $2.00 per statement.
When you check out the fee chart you will see that most of the fees can be waived for a 30 day period after you Direct Deposit $20 or more.
So who is the Approved Card by Suze Orman for? People who do not want to use a secured credit card, people who cannot get approved for a checking account due to bad credit, and people who will deposit less than $1,000 each month through Direct Deposit.
It’s not the best prepaid debit card but it is also not the worst prepaid debit card.
