Options for reloading are growing.
Unlike credit cards, which by law must disclose their terms and conditions upfront, no regulation forces pre-purchase disclosure of fees on prepaid cards.Prepaid card facts."The prepaid industry has expanded in recent years and with increased competition, consumers have far more options says a Consumer Financial Protection Bureau representative.Expect to see more incentives such as Wal-Marts cash-back rewards, which gives cardholders 3 percent cash back for using their MoneyCard at m, 1 percent for using it in their stores.Prepaid cards look like credit cards and spend like credit cards but theres no credit behind them.You can manage your account online or, often, via mobile app.It will not require a credit check, but neither will it help you build credit since spending on prepaid cards is not tracked by credit bureaus.Wal-Mart, for example, waives its 5 monthly fee if you have your paycheck or government benefits directly deposited to the account, or if you have loaded at least 1,000 in the previous month.
In 7 in 10 cards studied by m in 2016, prepaid card fees were not fully disclosed.
In other words, a prepaid card works like a debit card, minus many of the risks and, discount tire on alpine grand rapids michigan of course, the bank account.
Prepaid cards were originally designed for people with poor or nonexistent credit history, and remain an excellent option for those with credit issues.Here are the nine things you need to know about general purpose prepaid cards.Green Dot phased out its MoneyPak PIN in 2014 and Vanilla discontinued its March 31, 2016.You have five options: Transfer money from a bank account or financial institution.Green Dot, AmEx Bluebird and Serve, and Walmart MoneyCard all offer apps to manage your accounts on your mobile device.You can use prepaid cards to book a hotel room or rent a car.Using reload cards with a PIN was a popular and convenient way to load a prepaid card online or over the phone until PINs became a target for scammers."While prepaid cards were developed by entrepreneurs as an alternative to banking, the funds in these accounts are almost always held by a bank or credit union and enjoy federal deposit insurance said Cordray.Some cards charge for special benefits such as overseas use or automated bill pay, and most tap you for out-of-network ATM withdrawals.Even more people use Green Dot, and Wal-Marts MoneyCard is the most popular of all, according to Synergistics.A study by The Pew Charitable Trusts found that the most common reasons people cited for using prepaid cards were to make purchases in places that dont accept cash, to avoid credit card debt, to control spending and to avoid overdraft fees.Prepaid cards are an alternative to banks.You just load dollars directly onto the card and then use that balance for purchases.Fee structures vary so its important to read the disclosures.
Transfer money from a PayPal account.
Banks Contour prepaid card costs 4 a month and Chase Liquid costs 5 and American Express prepaid cards are essentially free.
"Many general-purpose reloadable prepaid cards are specifically designed to help consumers manage their spending while limiting costs and risks said Richard Cordray, director of the cfpb, in a February 2016 speech.