Prepaid Debit Card Reviews, Complaints, Etc

Tag: Fee

  • Visa Attacks Prepaid Fee Confusion

    Visa Attacks Prepaid Fee Confusion

    It’s getting harder and harder for prepaid card issuers to be sneaky about their fees. Earlier this year the Pew Charitable Trusts issued a report detailing the lack of uniformity when it comes to prepaid fee disclosures and proposed a model disclosure box to make it easy for consumers to compare the fees associated with different products. Soon after that announcement, Chase declared that its Chase Liquid Prepaid Card would adopt Pew’s disclosure suggestions.

    On June 3rd, Visa decided to weigh in on the prepaid fee disclosure issue. Working in conjunction with Pew and the Center for Financial Services Innovation, Visa announced that it has developed an easily understandable designation for consumers to look for in order to know quickly whether a prepaid card meets certain standards related to fees, disclosure and benefits. Prepaid card issuers that qualify can include a seal on their packaging and marketing materials that indicate their compliance with certain criteria. Think of it as a prepaid version of the “fair trade” sticker that graces coffee packaging.

    “We felt it was important to go beyond current requirements in the marketplace and bring transparency to this growing product area,” says Ryan McInerney, president of Visa Inc. “This Visa designation will signify a new level of simplicity, protection and opportunity, enabling cardholders to confidently manage their spending every day.”

    In order to qualify for the Visa designation, prepaid cards must meet a variety of standards such as offering a flat monthly fee that includes all day-to-day uses for the card. In other words, there are a lot of things that prepaid card issuers can’t charge for, such as point of service (POS) cash back, in-network ATM transactions, PIN or signature transaction fees and customer service or overdraft fees.

    Additionally, qualifying cards must also offer specific consumer protections. Among other things, to receive a seal of approval cards have to include FDIC insurance, dispute resolution rights and Visa’s zero liability coverage.

    According to Pew’s Susan Weinstock, who directs the group’s consumer banking initiatives, Visa’s move is important. “Visa is taking an important step forward by acknowledging the importance of clear disclosures and consumer protections,” she says. “It’s particularly encouraging that Visa is not allowing overdrafts on these cards, in light of our research on consumer prepaid card use.”

  • The Comeback Card – Secured credit cards offer a helpful route to the real thing

    The Comeback Card – Secured credit cards offer a helpful route to the real thing

    The horror stories about credit cards are real. Far too many people have used them irresponsibly and dug themselves a deep, deep financial hole that takes years or decades to get out of. But those unfortunate tales shouldn’t overshadow the very real fact that credit cards have revolutionized how we live, arguably doing for commerce what the automobile did for travel and what the mobile phone has done for communications. Just imagine the pre-credit card days when travel, shopping or going to a restaurant meant carrying around a wallet full of cash or traveler’s checks.

    These days, in the wake of the financial crisis – which both spawned tougher regulations and prompted banks to be circumspect about extending credit – many people simply can’t get a credit card. While that is probably a good thing overall, it means that people who have a poor credit history or are simply too young to have established a credit history cannot take advantage of the many real benefits of having a credit card in their wallet. That is, unless they opt to obtain a credit building card, aka as a secured credit card, and begin a journey to obtaining a full-fledged credit card.

    What’s ‘Secured’ About It?

    A secured credit card comes with a string attached, a fairly big string. To get a secured card, you have to put up some money.

    This protects the bank or credit union that issues the card. Fair or not, if you have shaky credit, you’re considered a high-risk customer. To reduce that risk, the bank requires you to deposit a certain amount of money for security. If you can’t repay what you owe on the card, the bank can take money out of that account to cover itself.

    The Payoff Down the Road

    A secured credit card is like training wheels on a bicycle. It’s meant to get you to a place where you no longer need it. The goal is for your secured card to evolve into a regular credit card, cutting the string and eliminating the need for the security deposit.

    When you have a secured card, you’re under a microscope. Think of it like getting a try-out on a baseball team; the coaches want to see how you perform before giving you a slot on the roster. In the same way, the bank keeps track of how you handle your account, and so do the three major credit bureaus, which are Equifax, TransUnion and Experian (not all secured cards report to the bureaus). While you get some of the albeit limited benefits of a full-on credit card, you’re able to show that you pay off your bill on-time.

    Beverly Harzog, an independent credit card expert and author of the forthcoming book “Confessions of a Credit Junkie,” says a secured card “is a great way to rebuild or establish credit.” But she adds: “The key is to use the card responsibly.”

    Plastic Look-alikes

    Because you have to deposit money before you can use a secured credit card, it may sound to some like a debit card, especially a prepaid debit card. But it’s very different.

    A debit card draws money directly from the user’s bank account to make purchases. Using one is like writing a paper check. There’s no credit involved. A prepaid debit card takes this one step further, letting you access funds without even having a bank account. The customer “loads” and “reloads” the card with money (there are various ways to do this) and spends as needed.

    If you simply want the speed and convenience of paying with plastic, debit cards are handy. But because they don’t involve credit, they do nothing to build your credit score. The secured credit card has that niche pretty much to itself.

    How to Apply

    Because banks face limited risk, they’re fairly receptive to an applicant for a secured credit card, assuming the person has money to deposit. Still, not every application gets a green light. For instance, a recent bankruptcy may limit a person’s eligibility and an especially reckless use of credit in the past may scare banks off.

    Offers for secured cards are everywhere. The important things for consumers are to find one that is issued by a reputable lending institution (an FDIC-insured bank or NCUA-insured credit union), choose an affordable sum to deposit, and to compare secured card offers.

    Deposits for secured cards range from the low hundreds of dollars to more than $5,000. A card’s credit limit is tied to the size of the deposit.

    The deposit amount and credit limit are not always the same, though. In a few instances, the deposit is more than the credit line. And there are a few “partially secured credit cards” that offer a higher limit than the amount deposited. “This is a little riskier for the issuer,” Harzog notes. Banks will provide more leeway to applicants it deems to be less of a financial risk.

    Fees, Interest and the Finish Line

    As is the case with any financial product, shoppers considering a secured credit card should look for ones that have fees that are as few and as low as possible. While annual fees are common with secured cards, a good secured card will not have an annual fee in excess of $35 or so.

    Even the best deal on fees (no fees at all) will do you little good if you’re stuck with an outrageous interest rate. You have to balance the two factors, look at the big picture and do the math. That being said, a good secured credit card should not charge more than 19 percent annual interest.

    For most applicants, the important part of having a secured credit card is the end game. When will their card become a regular credit card? Harzog, the credit card expert, cites 12 to 18 months as the average period, “if [the card is] used responsibly.” But she adds the caveat: “The specifics of each person’s credit file will be a factor.”

    A Helpful Tool

    Being shut out of the credit market is a difficult situation. But getting a secured credit card shows lenders that you’re a serious person, willing to bet your own money that you can handle your obligations. And it allows you to prove yourself month by month. This financial tool has helped millions of people to establish or rebuild their credit and, in so doing, helped them get on the path to financial freedom.

  • Bankrate Surveys Prepaid Cards

    Bankrate Surveys Prepaid Cards

    One indication of the mainstreaming of prepaid debit cards is the amount of attention these once fringe financial products are attracting from the media. The most recent example of that is an in-depth survey of the fee structures of 30 prepaid cards by Bankrate.com, a leading personal finance website.

    Released on April 7th, Bankrate’s analysis of the leading prepaid cards finds a wide range in the types and levels of fees charged. “Not all prepaid cards are created equal,” says Greg McBride, the chief financial analyst for Bankrate. “Some have many fees, some have few; some will waive or reduce monthly fees, others won’t; some permit free in-network ATM withdrawals, others don’t.”

    Bankrate’s evaluation of prepaid cards comes in the wake of research earlier this year by the Pew Charitable Trusts that found that even though prepaid cards are rising in popularity, consumer protections remain limited. Which is one reason why analysis of card fees by the likes of Bankrate is so important in order to arm consumers with the information they need to make smart choices.

    Among Bankrate’s findings were:

    • Activation fees are still common, with over 50 percent of the cards surveyed charging between $2.95 and $9.95.
    • Monthly account fees are hard to avoid. Over 80 percent of the cards examined charged some sort of monthly fee, although a third either don’t have one or will waive it if enough money is deposited into an account.
    • It’s best to find a card that has an ATM network. Of those that are affiliated with an ATM network, over 60 percent don’t charge for in-network withdrawals. Those that do, charge between $1 and $2.50 per transaction.
    • Checking your account balance at an ATM is a bad idea. Almost 80 percent of the cards Bankrate looked at charge a fee, as high as $3, for this basic information.
    • Paying your bills is free. None of the 30 cards Bankrate looked at charged a fee for their bill pay function.
    • Find another card if yours charges a point of sale fee. These are a rarity now, with only 17 percent charging for PIN transactions and 7 percent for signature purchases.

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Enhanced by Zemanta
  • Chase Liquid Adopts Disclosure Recommendations

    Chase Liquid Adopts Disclosure Recommendations

    Chase has adopted consumer-friendly disclosure recommendations for its Chase Liquid prepaid card. At the same time that the Pew Charitable Trusts unveiled detailed suggestions about the types of fees and other disclosures all prepaid debit card issuers should make available to consumers, Chase announced that it would do exactly what Pew advised.

    The popular Chase Liquid prepaid card became the first product to follow Pew’s road map, which was released in hopes of making it easier for shoppers to choose between quickly multiplying prepaid card options. Although prepaid cards have seen a steady and sharp rise in popularity over the past few years, Pew notes that there are no legal or regulatory requirements that card issuers must follow when it comes to disclosures about fees, terms and conditions. Pew has also found that only 32 percent of consumers actually compare card terms before selecting one.

    By quickly implementing Pew’s disclosure suggestions, Chase may very well be grabbing a competitive advantage in the increasingly cutthroat fight for prepaid card customers. It also doesn’t exactly hurt Chase’s reputation among lawmakers, including US Senator Mark Warner, who recently introduced legislation to compel financial institutions to more clearly disclose fees related to their prepaid cards. “I commend Pew for their work on this issue and Chase for being the first prepaid card provider to adopt the disclosure box for their cards, which I proposed making standard for the industry in my legislation,” says Warner.

    The Chase Liquid disclosure form is attached to the packaging that comes with the physical card. The box includes information on a wide range of fees – although many don’t apply to Chase Liquid – including charges to get cash back from a purchase, a monthly account maintenance fee and the charge for calling a customer service telephone number.

    For its part, Pew hopes that Chase is just the first of many prepaid card issuers to follow its disclosure recommendations. “Pew’s research shows that inconsistent disclosures make it difficult to understand the fees associated with each prepaid card,” says Susan Weinstock, director of Pew’s safe checking research. “Terms should be plainly stated so that consumers can make fully informed financial decisions. Chase is taking an important step toward making these cards more beneficial and we hope other providers will follow.”

     

     

     

     

     

     

     

     

     

  • Walmart MoneyCard Prepaid Visa Debit Card

    Walmart MoneyCard Prepaid Visa Debit Card

    The Walmart MoneyCard prepaid Visa debit card is one of the cards that have the most attractive features on the market. Normally what attracts a person to a prepaid debit card is not its physical look but its usable features. The Walmart reloadable prepaid Visa debit card is not lacking in these either.

    The first feature is the ease of acquisition. The card is one of the easiest to acquire. To obtain it you don’t require a bank account and neither do you require any credit check. You can buy it at your local Walmart or Walmartmoneycard.com. Once you get the card you don’t have to stand in a queue for long periods of time waiting for it to get activated like you do with some cards offered by some financial institutions. To activate you only need to place a call to Walmart and they will activate the card for you immediately.

    A prepaid debit card no matter how good its features are, if its not easy to use will end up serving little or no purpose. The Walmart MoneyCard prepaid Visa debit card has been designed to make transactions easier for the card holders. The card is accepted in all Walmart outlets worldwide. This makes your shopping abroad as easy as shopping home. You can even use it to shop online. This is unlike most other prepaid debit cards that only allow you to shop from stores but not online.

    With the Walmart prepaid debit card, you don’t have to worry about acquiring cash whether you on tour abroad or at home. The card allows you to get cash from a large number of compatible ATMs the world over. This means that all you require when traveling is your prepaid visa card.

    The Walmart prepaid Visa debit card does not only cater for travelers, it also caters for those at home. You can use to complete a wide range of transactions while at home without the need for cash. You can use it to pay a wide range of bills. These include the cable bills. The power bills, water bills, cell phone bills and many other utility bills. The cards provide an easy and quick way of paying bills in that there are no long procedures involved. The process has been made deliberately short and without complexities so as to make it simple for the consumer. You can even use it to pay for other domestic expenses like buying groceries, paying for gas, paying bills at restaurants and so on.

    Over time, the Walmart prepaid debit card has become very popular with business people since it allows them for virtually everything they need. One can use the card to make hotel reservations, pay for airline tickets and many other expenses. Unlike cards that encourage careless spending, the Walmart prepaid Visa card enables one check spending. You can do this through by receiving email alerts every time you make a transaction on the card. One can also be receiving SMS balance alerts.

    Safety and convenience are another main advantage of the prepaid card. You are charged no transaction fee and neither do you pay anything if you reload your funds using the direct deposit. There are policies that protect the card holder from unauthorized purchases.

    How much does the Walmart reloadable prepaid Visa debit card charge? Fees?

    You will have to pay $2 dollars for ATM withdrawals, $1 for balance inquiries, $3 dollars for monthly maintenance which can be waived if you load or reload at least $1,000 dollars in a calendar month. And you also have to pay a fee to reload the card with a GreenDot MoneyPak which can average $4.95.

    These are just some of the fees you will have to pay.

    The Walmart MoneyCard prepaid Visa debit card also has several benefits that make it one of the best prepaid debit cards you can use. It has a lower monthly fee than other cards and offers a 1% cash back bonus on gas purchase through the end of 2011.

     

Prepaid Debit Card Reviews, Complaints, Etc