Prepaid debit card



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Prepaid debit card

November 8th, 2007 by Shenron

A prepaid debit card can be a definite asset to those who may have difficulty securing another type of credit card. They also are a good tool for helping young adults learn the benefits of money management. A prepaid debit card can also be of great help to those who for whatever reason are unable to get a bank account. If you fall into this category, then you know that it is essential to have a card to make purchases online and keep things moving along quickly.

There are a few things to consider when you are looking at getting a prepaid debit card. The most important thing to consider is the fees. There are a number of fees, which are associated with these types of cards, which you probably won’t find with regular major credit cards. While these cards don’t help you build your credit and you don’t have to worry about balance calculations and interest fees, there are other things to look at.

Just like with anything the fees vary from card to card so choosing one with the lowest fees available means you get to keep more of your money. Here are some of the fees you may be looking at when getting a prepaid debit card. It is important to consider the overall scope of these fees as that will be a major consideration when choosing the right card for your needs.

Applications fees – this fee is charge when you apply for the card. Some may not have one attached but the application fee can be as high as sixty dollars.

Processing fee – This fee usually a one time fee and comes after you get the card it can be as high as ninety dollars so it’s definitely one to look out for. Not all cards have an application or processing fee, so you should be on the look out for the ones who do not.

Monthly Maintenance fee – This fee can be between four and nine dollars a month and is basically used in place of an annual fee and works the same as the monthly fee on a checking account. As long as you have a certain amount on the card, you won’t be charged. It’s a good idea to look for a card that not only has a low monthly fee but also a low minimum balance.

Loading card fee – These are fees that are charged for adding money to your account. There are a few types that do not have a charge for certain types of deposits or for any deposits. The fee is generally one dollar per transaction. This can certainly add up over time, so you have to keep an eye on this.

Purchase Transaction fees – this can be anywhere from fifty cents to a dollar fifty for each time you purchase something with your card. Read the terms carefully as some don’t charge for signature based purchases.

Customer service, Paper statement, companion card and card replacement fees- these fees are charged every time you speak to customer service, if you want paper statements, a companion card or you lose a card. They may not seem like much but two or three dollars apiece can really add up.

Choosing a prepaid debit card with low fees means that you are getting to keep the majority of your money where it belongs with you. There are plenty of prepaid cards out there to choose from with a variety of different fee schedules and amounts a little research can lead you to a card that gives you what you need at a price you can afford.

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