Prepaid Debit Card Reviews, Complaints, Etc

Tag: spotlight

  • Rewards Season: Prepaid Debit Card Benefits to Look For

    Rewards Season: Prepaid Debit Card Benefits to Look For

    No, it’s not the Oscars and there won’t be any tedious speeches. But prepaid cards do offer ways to get awards

    There’s no official name or diagnosis, but most of us know someone who suffers (or benefits) from a condition perhaps best called frequent flyer-itis. You know the type: they’re the ones whose wanderlust is so overpowering that they pull out their co-branded airline credit card to pay their rent, buy groceries or even take home a six-pack. In a quest to wrack up miles, the card is used for everything.

    Given the popularity of many of these so-called rewards programs in the credit card universe, it should come as no great surprise that the issuers of prepaid debit cards use the same quid pro quo approach as a way to encourage more frequent use of their products. Like their credit card brethren, these rewards can range from cash back to points earned toward purchases. Here’s a look at how a few of the many rewards programs work.


    Free Food

    Not surprisingly, the rewards program associated with the grocery store chain’s Kroger 1-2-3 REWARDS Prepaid Card revolves around food. That is, the enticement to get holders of the card to use it as much as possible is the prospect of earning free gallons of milk and Fuji apples.

    The program is set up in a very familiar way. Every $1 you spend using your rewards card earns you points, which can then be redeemed towards the purchase of groceries. To put it simply, every 1,000 points you earn translates into $5 in groceries. But how quickly someone can reach that 1,000 point milestone depends on where they use their card. If you go to, say, McDonalds or Whole Foods – any store outside the Kroger family – then each dollar spent earns 1 point. So, $500 worth of Big Macs would garner 500 points.

    But if you opt instead to pull out your 1-2-3 REWARDS Prepaid Card to settle up your tab inside one of the Kroger stores that will earn you double the points: so $500 worth of Kroger groceries would yield 1,000 points. And if you go one step further and actually buy Kroger brands when you’re at one of their stores, points accumulate faster. In that case, every $1 spent yields 3 points. So, again, $500 spent with the prepaid card on Kroger brand cereal and coffee filters would earn 1,500 points. All of this is to say that the more loyal you are to Kroger, the quicker you’ll be rewarded – notification of rewards come automatically via email.

    For the moment at least, using the Kroger REWARDS card outside the grocery center can save you a bit when you fill up your car – at a Kroger Family of Stores Fuel Center, naturally. There, using your card to purchase gas saves you $.05 per gallon.


    Just Rewards?

    To be clear, there’s not a lot of reinventing the wheel when it comes to the design of prepaid debit card reward programs. The formula is simple: the more you use your card, the more offers and cash back you’ll receive. In that way, the NetSpend Payback Rewards card is squarely in the mainstream, albeit with a few exceptions. For instance, those who use the card receive offers from merchants, which they can redeem. Additionally, NetSpend offers a referral program. Whenever a family member or friend loads at least $40 onto their new card, you’ll receive a $20 credit.

    The structure of the NetSpend program brings up an issue that is important to consider with all prepaid debit card rewards – that of fees. Or, to be more specific, what is the best card plan to choose if you don’t want fees to eat up all you would earn in rewards? With NetSpend, for instance, choosing the Pay-As-You-Go option, which has no monthly fee, seems unwise if your idea is to make lots of purchases and reap lots of rewards. With that plan, you pay $2 every time you make a PIN purchase and $2.50 for each ATM withdrawal, plus whatever the ATM owner charges.

    NetSpend also offers a FeeAdvantage Plan, where, for $9.95 per month, PIN purchases are free. And if you start depositing $500+ monthly to your account, you qualify for the NetSpend Premier FeeAdvantage Plan, which works the same way as the FeeAdvantage Plan but costs only $5 per month. Whatever you choose, be sure to pay close attention to the fees you have to pay as you work your way towards the rewards. A reward doesn’t look so good when you have to pay big bucks in fees just to get it.

    For more information on NetSpend’s purchase plans, click here.

    For more information on the NetSpend rewards program, click here.


    The Social Network

    Like its competitors, the AchieveCard is set up in a way that you can probably recite in your sleep at this point. Reward points are earned by using the card for purchases. What’s unique, though, is that the bank incorporates social media into its point structure. In other words, you can earn points by going on Facebook and championing the card.

    The following table explains the AchievePoints program; it can also be found here.

     

    How do I get AchievePoints? How many? Tips:
    Make Purchases
    Credit Purchases (Signature) 3 points for every $1 spent To earn the most points, always select CREDIT instead of DEBIT at the register. It’s that easy!
    Debit Purchases (PIN) 1 point for every $1 spent
    Monthly Bonuses *Bonus Points are awarded on the 5th of each month, for the previous month’s activity
    Load at least $1,000 1,000 Bonus Points This is DOUBLED if you load with Direct Deposit.Ex: Direct Deposit $1,000 = 2,000 bonus points!
    Make at least 30 purchases 1,000 Bonus Points The more you buy, the more points you get… Aim to use your card at least once per day!
    Keep your account in good standing Up to 10,000 Bonus Points You pay your monthly maintenance fee, we give you a bonus! 1,000 points your first month, 2,000 points your 2nd month…capped at 10,000 bonus per month after month 10.
    Extras
    Facebook “Like” 5 points for every item you click the “Like” button This is one of the EASIEST ways to earn points! Simply visit the AchieveRewards website, click on an Auction or Sweepstakes Item and Click “Like” or “Share!” You may only like/share each item once, but new items are posted EVERY DAY!
    Facebook “Share” 10 points for every item you “Share” on Facebook

     

    Smarty Pants

    When it comes to the kind of fees that can really eat into your rewards, SmartyPig’s MasterCard Cash Rewards Card has some real advantages. Yes, there is an initial one-time $9.95 charge for the card. But after that, all PIN and POS signature purchase transactions are free. ATM transactions still have fees, but there are no monthly fees AND NO purchase transaction fees.

    You have to opt-in to SmartyPig’s rewards program but once you do you will receive an exclusive, reloadable card and can use it everywhere MasterCard is accepted. The reward: SmartyPig makes it very simple and gives you a flat 1% back on all purchases. You can deposit the cash boost into a SmartyPig goal – which allows you to put away money for a specific goal – or keep it on your card. For more information about the SmartyPig savings program, see the Smarty Pig overview page.

     

     

  • 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.

Prepaid Debit Card Reviews, Complaints, Etc