Prepaid Card

Prepaid cards are reloadable cards that can be used to make payments similar to debit cards and are becoming the foundation of a second tier banking system used by a growing number of low income consumers.

While prepaid cards are becoming an increasingly popular alternative to check and traditional bank accounts, report finds that the cards come with high fees and don’t offer consumers the same kinds of protections as other forms of plastic payment.

Consumers using prepaid cards end up paying a mountain of costly fees that can add up quickly and undermine their finances. These cards might leave them vulnerable if lost or stolen.

Prepaid cards are a growing business and usually bear a network logo such as Visa or MasterCard and often have the word “debit” printed prominently on the front of the cards.

A report reviewing the terms and conditions of 18 different prepaid cards show the following statistics:

• Activation Fees: 17 of the 18 pre-paid card issuers reviewed charged consumers a fee for activating their cards. These activation fees ranged from a low of $3 for the Walmart Money Card to a whopping $99.95 to apply for and initiate the Millenium Advantage card.

• Monthly Fee: 15 of the 18 pre-paid card issuers charged monthly fees ranging from $2.95 per month for the nFinanSe card to $9.95 per month for the Rush Card. Most pre-paid card issuers will waive the monthly fee if a direct deposit is set up. Some card issuers will waive the monthly fee if the consumer chooses the “pay as you go” option.

• Fees to Get Cash: All 18 card issuers reviewed charged fees for withdrawing cash from ATMs in the U.S. On the low end, the nFinanSe, SVC Revel, and Espree cards charge $1.50 per withdrawal. The NetSpend Visa card charged the highest fee – up to $2.50 for each withdrawal. Charges are usually even higher for international withdrawals.

• Balance Inquiry and Statement Fees: 17 of the 18 card issuers charged fees for checking balances at ATMs, ranging from 50 cents to $1. This does not include any additional fee charged by the ATM owner.

• Customer Service: Most pre-paid card issuers provide free customer service, but consumers using the Millenium Advantage card will be charged $1 per minute when they call customer service, while users of the Espree card will pay $3 for each customer service call. Some pre-paid card issuers charge customer service fees after a limited number of free calls.

• Fees for Inactivity: Eight of the 18 card issuers charged fees when cards are not used after a certain period of time. These dormancy fees range from $1.95 per month for the Rush Card (after 90 days of inactivity) to $9.95 per month for the Exact card.

• Overdraft Fees: A number of prepaid card issuers claim that they do not charge fees when users spend more than the available amount on their cards. However, Consumers Union found that 10 of the 18 cards it reviewed included overdraft or “shortage” fees. These range from $24.90 charged by Espree for overdrafts to $29 charged by Eufora and AccountNow.

Moreover, when prepaid cards are lost or stolen and used by others to make fraudulent transactions, consumers are not protected by the same regulatory and statutory safeguards that enable other debit card users to recover their money. If a consumer contacts a card issuer about a lost or stolen debit card within two business days, the consumer’s liability is limited to up to $50 (or up to $500 if the consumer reports the debit card lost or stolen after two business days). By contrast, prepaid cards may only have voluntary protections that could be revised or rescinded at any time for any reason.

Identity theft protection

The protection of this kind of service is very limited. You can protect yourself with a little effort of yourself. Get a free credit report every year and apply for security freeze with credit report company Experian, Equifax and TransUnion. You can also apply to ban your creditors to access your credit record. Be careful when you use your legal name, driver license number and social security number. Be careful when you discard your document or any paper with your driver license number or social security number on it.

Warranty extension

Warranty extension insurance for your computer, electronic device or your home appliance usually does not worth it. But be careful when you choose what kind of brand to buy. Choose the brand that has good qualiy.

Car renting insurance

Car renting insurance usually is not necessary when you rent a car. It is only a money game. Examine your vehicle insurance policy carefully. Usually it provide coverage when you drive a renting car.