Finance Discussions

Prepaid debit cards are great for those who do not have a checking account, for whatever reason.  Many retired seniors choose these types of cards because it's simple to manage.  Social Security, AFDC, Child Support, IRS...all of these entities accept these cards as means of direct deposit, and it works with payroll checks, pension checks, etc.  Bearing a Visa or MasterCard logo makes it convenient to use most anywhere, including online.  However, please be careful when selecting the company whom you wish to do business.  During a long game of Canasta a few nights ago, a discussion regarding these prepaid debit cards came up at the table.  I use one for online purchases only.  My card is sponsored by WalMart.  I just take $4.95 + the amount I want to load onto the card to the cashier at WalMart, and voila...my money's available immediately.  CVS, Walgreens, etc, have reload packs that say "green dot" on them, which is also a convenient way to reload.  If I load more than $1000 per month, then my $4.95 monthly fee is waived, and so is the $4.95 reload charges...direct deposit is free according to their TOS.  I can get cash back if I use it to purchase something at a register, but standard ATM fees apply if I use it at an ATM.  This is the extent of the charges I payout.  During our conversation, I was enlightened to find out that apparently, the WalMart Prepaid debit card is one of the less expensive out there.  DirectVisa is also a prepaid card offered by many hole-in-the-wall auto insurance companies, and NetSpend is offered through Ace Check Cashing in our area.  What surprised me was that both of these other cards not only charge a greater monthly fee ($9.95!!!), but they also charge a reload fee, AND a pay-per-use fee of $1.00 or more!  My advice to everyone is to read the company's Terms of Service Agreement very closely!  One lady at the table uses her NetSpend Card to have her Social Security check auto-deposited...she's charged $9.95 per month, plus she has 13 standard purchases every month (utility bills, prescriptions, grocery shopping) which adds another $13.00 to her cost of having the card!  With an income of only 992.00 per month, she could really use that extra $156 per year!