Check cards and credit cards are great. They allow you to spend your money more easily, and also give more freedom to buy what they want and need without worrying about how much money you have a credit line as it were. However, there is something to be said for the prepaid debit card. It’s a great money management tool, if you have other credit or debit card or not. The glory of the cards is that you can load only with the money you want to invest in an expense and then they will not risk spending more. You can also use to pay bills online, so your bank account information is not compromised.
Most web sites are very safe these days, but identity theft remains a problem. With so many businesses accept online payments for utilities and other bills, having a card with less risk of losing their purpose. Think of it this way. If you pay your electric bill online for $ 125, and someone hacks into the site or your computer and steal your information, you could risk losing everything in your checking account or have their credit card maximum out. This is a rare occurrence, but not to make you feel better put that money into a prepaid debit card and spend as you need? Then when the money is gone, if someone steals your information and try to use the card, you can simply cut and a new one, without loss of its financial situation.
Many people think that prepaid debit cards are reserved for those who can not obtain other cards or for neither? You are being taught that financial responsibility. The truth of the matter is that there are many uses for prepaid debit cards no matter who you are or why you use it, because there is something for everyone. When it first appeared, prepaid cards have high fees for loading money on them and maintaining certain balances. But now there are plenty to choose the cards that are completely free, including ATM withdrawals, and the addition of funds.
There are many credit cards that have been incorporated in programs to promote the card, so that when used properly and managed well, it helps your credit rating over time. That does not work as fast as a credit card, but better than nothing when you are limited in their options. In general, services of prepaid debit cards are great for anyone who wants more control over their money or need a way to spend wisely without carrying cash around too much.
December 24th, 2009 at 3:00 pm
Here’s my take on Prepaid Debit Cards (payroll cards) based on my own experience:
I used to work at Ruby Tuesday and our card was pretty bad. But, from what I hear, it was typical because most cards either have a monthly fee or pretty limited as to the free items. I have worked at Starbucks for about 7 months now and they allow us to have a card called the Money Manager Card. The choice was pretty simple because there are no monthly fees, I can use it on their network (allpoint atms) free at all times, never any fees to buy things (signing or using my PIN and getting cash back if I want…all without a fee or surcharge), no overdraft. Let’s just say I haven’t paid a fee in the entire time I’ve had the card. It’s pretty simple to use it at no charge and I really don’t have to tip-toe around any limited free items like most other cards I have seen have.
Oh, and don’t lose most payroll cards! If you do, it’ll cost you $$ even to get the replacement sent by the post office. My new card give free replacements when delivered by the post office all of the time. Or, if I want, I can get it delivered by Fedex for $10. Pretty reasonable as I sent something by Fedex a month ago and paid $14!
My point is, if you are a company and are going to get your employees something, don’t do what Ruby Tuesday did and get something that costs your employees $$$ to use it! I hated them for “giving” us that card…IMHO of course.
I should state that Walmart has something that is similar sounding to Money Manager Card. I think it is the Money Card or something like that. That card is definitely not the same.
I did a quick Google search on Money Card when investigating the Starbucks offering and mistakenly clicked on a link to a Money Card “problem” page where people complained about it. Then, I realized that “Money Card” is not “Money Manager Card”.
Thought I would let you know so you don’t make the same mistake.
December 24th, 2009 at 5:03 pm
Hi, I found your blog via Yahoo while searching for something else but your post / blog looks very interesting for me.
January 5th, 2010 at 6:57 pm
One of the most important feature of a prepaid debit card is the absence of overdraft fees, which are very prevalent to traditional debit cards issued by a bank. People are sometimes prone to overspending, so banks keep on charging those fees to your account.