Account Now: Still #1 for Prepaid Debit Card Carrying Consumers

Prepaid Debit Cards

Prepaid Debit Cards

Last Updated: December 22, 2011

Check Out Our Recommended Debit Cards

If you're frustrated because it seems as though a credit card is necessary to get by in today's world, and you've been unsuccessful getting one due to a poor credit history, you might consider a prepaid credit card. You'll have most of the advantages of a credit card, and you won't haveto worry about interest charges. One significant benefit of the prepaid credit card is that you can charge to your heart's
(I mean your deposit limit's) content, and you won't be in debt; the money is yours and once it's gone, you can't spend any more until you add more funds.

What is a Prepaid Debit Card?
A prepaid credit or debit card account is opened by depositing money into an account you establish with the card issuer, much in the same way you would make a deposit to open a checking or savings account. Once you fund the account with a designated amount, you are issued a prepaid credit
or debit card that can be used anywhere one would use a regular credit card. A prepaid credit card is not really a credit card, as no credit isoffered by the card issuer; the card-holder simply spends money which has been "stored" via a prior deposit by the card-holder or someone else, such as a parent. It's very similar to using a debit card linked to a savings or checking account; there are no monthly bills associated with the card, or interest charges; but there are still fees involved, so consumers should always do their research and understand the cost of their"credit".

Why Are These Called Credit Cards?
The reason why the word "credit" is associated with these prepaid cards is because most cards carry a credit-card brand (such as Visa orMasterCard) and can be used in similar ways. It's really no more than a stored value card that can be used in multiple locations due to the Visa(or other credit card) insignia. As more consumers require a suitable solution torebuilding credit, recent changes have allowed some credit cardcompanies to offer pre-paid credit cards to help rebuild credit. However, they are harder to find, and many have higher fees associated with them; so make sure you do your research. Many pre-paid products falsely claim they will improve your credit rating.

Benefits of a Prepaid Credit Card
1. There is no such thing as overdrafting your account; you cannot exceed your limit.
2. Prepaid credit cards can be a big advantage to low-income consumers who might otherwise be stuck dealing in cash, unable to make such basic transactions as paying for gas at the pump, paying bills online, or making car rental or hotel reservations.
3. Contingent on the card you select, your money may be protected if your card is ever lost or stolen.
4. Prepaid credit cards are a convenient way to pay for goods when traveling, even outside the U.S.
5. Prepaid credit or debit cards are often marketed to teenagers for shopping online without having their parents complete the transaction, or as a convenience for parents wishing to provide funds to children away from home.
6. Obtaining a prepaid credit card is easy, fast, and requires no credit check.
7. Some prepaid credit cards today report card history to major credit bureaus, so cardholders may be able to build or rebuild their credit using a prepaid credit card without the risk of damaging it along the way.
In summary, prepaid credit cards are a good solution for anyone who does not want to be tied down to a banking institution, anyone wanting a more secure way to carry their money than simply cash, or anyone having troubles being approved for a credit card. In today's society that is more and more cashless, somebody who doesn't have access to cashless transaction vehicles is at a major disadvantage.

Disadvantages to Prepaid Credit Cards
There are a number downsides to the prepaid card.
1. Most cards require a start-up fee, and while for many companies this fee is minimal, some of them are substantial. In addition, you'll most likely have to pay additional fees each time you deposit more cash into your prepaid credit card account; perhaps not as much as the initial fee, but a fee, no less.
2. Some cards will allow you to add more funds for free, but may charge a monthly "maintenance" fee instead.
3. Another downside is that many businesses that accept automatic payments from bank or credit card accounts may not accept them from prepaid cards. For most consumers this is a minimal annoyance, but for some it can be a significant setback.

As with any credit product, when selecting a prepaid card you should always do your research and make an informed decision on the best card to meet your individual needs. As stated previously, there may be a number of different fees associated with using a prepaid credit card, some of which might be high enough to offset any benefits. A prepaid credit card will generally carry more fees than a secured or unsecured credit card (presuming you pay them off monthly) therefore a prepaid card may only be a good option for those who cannot obtain any other form of credit, but require the convenience of a credit card. 

Now let's define some of the fees you might encounter in researching the available prepaid credit cards:
-Sign-up or Start-up Fee: Self-explanatory. May range from "free" to $50.
-Transaction, POS, or Usage fee: A fee assessed each time you use the card at a store, online, by phone, etc. Typically it is "no charge", but there might be a small fee (under $1.00).
-ATM Withdrawal fee: Can range from "free" to $5.00 or more. May be higher for International withdrawals.
-Monthly Maintenance Fee: A fee charged to your account each month. Sometimes there is no fee for the first few months, and then one kicks in after 6 months; can range from "free" to $10 or less.
-Reloading or Recharging Fee: A fee charged to you for adding more money to the account where your money is being held. Depending on the method used to add or transfer the money (at a retail location, using another credit card, cash, etc) the fee may differ. Typically "free" to less than $5.
-Balance Inquiry Fee: A fee to provide you information about your available balance. Can vary contingent on the method you use to request the information: online, telephone, ATM. May range from "free" to $3.00 or less.
-Monthly Statement Fee: A fee for obtaining monthly transaction history. May be up to $10 if sent by mail, however is typically free of charge if you go to the card issuer's website.
-Cancellation/Refund Fees: A potential fee for cancelling your card altogether or requesting a partial refund of monies loaded onto the card.
-Insufficient Funds/Overdraft Fees: A fee charged if you attempt to make a transaction and it is refused to to inadequate funds in your account;or, it goes through anyway but you exceed your limit. Usually under $3.00.
-Foreign Currency Conversion Fee: A fee, usually a percentage of the total amount spent, charged to convert from another currency during international transactions/travel.
In Summary: Check out the various types of pre-paid debit and credit cards on the market. Read the terms and conditions carefully, and define your objectives for needing this product.
Depending on your individual needs, you may find that a traditional credit card, a secured credit card
or a debit card will work better for you and save you money in the long run.

Here are a few Prepaid Debit Cards We Highly Recommend:

Living Without A Bank Account

There's a troubling trend in this nation: People are giving up their banks.

Exactly how many people are going "bank-less" is hard to track, but in the late 1990s, the number bandied about in newspaper articles was approximately 10 million Americans, and the FDIC estimated that 13% of all American households were without a bank account.

Now that number has risen to nearly 17 million, although, because of population growth, the percentage of American households that are "un-banked" has decreased to 7.7%.
But those are only the people on the extreme end of the bank-less trend. If we also include those who are "under-banked" -- people who may have a checking account but depend on payday loans and pawn shops to help them get by -- then we're talking approximately 75 million Americans, or 25% of the population who are under-banked or un-banked.

Whether somebody has a bank account or not may not seem like such a big deal, but it costs a lot of money to live without a bank. Candice Choi, a personal finance writer with the Associated Press, recently did an experiment, living for a month without her bank account, just to get a sense of the life of an un-banked person. Then, like any good journalist, she wrote about the experience.

I spoke to Choi on the phone about her un-banked experiment. She says she came up with the idea simply because in the past two years, ever since the recession started causing Americans to spend money in ways they hadn't previously imagined, she'd been writing a lot about public anger with banks and payday loans and realized that plenty of people were living a life unlike hers and the majority of Americans. It just kind of hit her that she should see what that life was like.

So for one month, Choi went about her life as usual -- minus her bank account. She took her paycheck to a check-cashing service and used prepaid cards, and in the process, she spent $93 in fees, which, added up, works out to be about $1,110 a year.

That's a lot, but Choi admits, "It probably wasn't as much as others would incur. I didn't put this in the article -- it just added a layer of complexity that took away from the point I was trying to make -- but I'm married, and my husband handles a lot of the bill paying. But I handle the rent, so I did pay that, but if I had to pay all the other bills, I would have spent more than $93."

Given the high cost of not having a bank, why would anyone choose to live month after month, year after year, like Choi briefly did? There are several reasons, none of them necessarily good, but all of them understandable.

Fear. It's not that poor people don't understand how banks work and thus are intimidated by them. In fact, they understand all too well how banks work, and because of that, they're rattled.

Ben Mangan is the CEO and co-founder of EARN, a California-based nonprofit that has made it one of its missions to help the un-banked come into the banking mainstream, and has been studying the un-banked for some time. In fact, Earn.org was instrumental in helping 50,000 San Francisco residents join a bank in the past several years, and the White House took notice. The Obama administration recently allocated $50 million for the 2011 fiscal year budget to help make it possible for other cities to adopt the San Francisco program.

Mangan says that in all the data it has mined, the company has found that many people felt that "bank fees were too complicated and that the system was designed to trick them into paying fees."

It isn't that the un-banked want free checking. They're happy to pay small fees if the bank rules are transparent, says Mangan. What they don't want is to suddenly, unexpectedly make a mistake that leads to a series of charges and then find themselves paying $235 in overdraft fees.

When you look at it that way, $93 a month is a bargain.

Geography matters. "It's all well and good to have these programs for the un-banked," says Richard Barrington, a spokesman and personal finance expert for MoneyRates.com, a comparison site with the best bank rates. "But they don't matter much if the banks don't have branches and ATMs in neighborhood." That said, Barrington notes that even among the poor, Internet connectivity is better than it once was, so he has high hopes that mobile banking will be able to help bring the un-banked to the banking system.

Cycle of poverty. Parents who don't have bank accounts aren't likely to teach their children how to open up a bank account, but they may just show them how to cash a check at a payday loan store.

And while that may be one of the main reasons the poor are among the un-banked, there are others as well. As Choi writes in her article, "Language barriers intimidate some would-be customers, or they simply feel banks aren't welcoming. For others, literally handling their own money offers a sense of control at a time of financial anxiety."

But what's even scarier is to imagine the United States' financial picture if, say, 10 or 20 years from now, 30% or 40% of our population is un-banked or under-banked. Take a look.

The classes will be even more separated. "Not having a bank account drives a wedge between the haves and have-nots," says Barrington. "It's not a healthy thing. I think it's in everybody's self-interest not to have a society where there's an underclass, where people feel alienated and outside the system. We're a capitalist society, and, yes, there are always going to be people doing better than others, but the ones who are totally on the outside, who have no stake in society, are going to tend to be destructive to society rather than constructive. It's better for society if you're actively participating."

Fewer people will live their retirement years in anything resembling luxury. Having a large percentage of the population un-banked will also mean that as a country, we aren't going to be a nation of savers or even spenders, but a nation of people who barely live paycheck to paycheck. Mangan says that one reason Earn.org is trying to bring the un-banked into the banking system is that if you don't have a checking account, you aren't likely to have a savings account. So instead of your money going toward your old age, it's funding the cash checking, prepaid card and payday loan industries.

The clueless shall lead the clueless. And what might be even more unsettling is how few people seem to understand how these un-banking financial tools even work. It's perfectly reasonable if a new customer doesn't know the finer points of these products, but shouldn't the people behind the counter understand how to use them?

Choi told me that reloading her prepaid card, something she had never done until working on this story, was surreal. "I needed help," said Choi, "and I was asking the cashiers, and they were confused about it. And the manager wasn't sure how to do it. It became a half-hour ordeal."

Geoff Williams is a frequent contributor to WalletPop. He is also the co-author of the book Living Well with Bad Credit.

NetSpend Cardholders Load More Than $1 Billion onto Prepaid Debit Cards in February

Increasing Number of Cardholders Using Direct Deposit

March 04, 2010 04:56 PM Eastern Daylight Time

AUSTIN, Texas--(EON: Enhanced Online News)--NetSpend, a leading provider of prepaid, reloadable debit cards, announced today that the company’s cardholders loaded a record $1.04 billion onto their NetSpend prepaid cards during the month of February — marking a company and industry first. The NetSpend card is designed to be a more convenient and less expensive financial alternative to cash and traditional banking products for the approximately 60 million un- or underbanked consumers in the United States.

“We believe we are more effective than our competition when it comes to banking the unbanked. Empowering these consumers with the convenience, security and freedom of being ‘self-banked’ is the mission that motivates all of us at NetSpend.”

Most of the $1.04 billion was loaded by cardholders who chose to have their paychecks, government benefits and tax refunds electronically deposited onto the card. This reflects the trust customers place in NetSpend as they look to the card as an alternative form of banking rather than a simple alternative to paying with cash.

“The continued increase in volume is clear evidence that more and more consumers in this country are embracing the convenience and value of NetSpend’s self-banking solution,” said Dan Henry, chief executive officer at NetSpend. “We are immensely proud of the work we have done and we are thankful to all of our partners who help us serve and empower our customers.”

NetSpend believes it provides the self-banked consumer with unparalleled convenience. With more than 90,000 reload locations throughout the country, free direct deposit, free Anytime Alerts and free card-to-card money transfers, NetSpend cardholders have access to the most product features of any prepaid debit card in the industry.

“All NetSpend cards are Visa or MasterCard branded and are issued by FDIC-insured, regulated financial institutions,” said Henry. “We believe we are more effective than our competition when it comes to banking the unbanked. Empowering these consumers with the convenience, security and freedom of being ‘self-banked’ is the mission that motivates all of us at NetSpend.”

About NetSpend Corporation
NetSpend Corporation is one of the leading providers of prepaid debit cards in the United States. A pioneer in the industry since its inception in 1999, NetSpend prepaid debit cards give financial freedom and convenience to the more than 60 million underbanked consumers in the United States. NetSpend is the only company in the prepaid debit industry to offer an end-to-end solution for consumers and merchants with a proprietary processing platform, card fulfillment, customer service and risk management capabilities. More information about the company can be found at NetSpends Website or by following the company on Facebook or Twitter.

About MetaBank™
MetaBank is a federally-chartered savings bank regulated by the Office of Thrift Supervision. Meta Financial Group, Inc.® is the holding company for MetaBank, Meta Payment Systems®, and Meta Trust Company®. For more information, visit www.bankmeta.com.

NetSpend Savings Accounts are issued by Inter National Bank, member FDIC. Interest is calculated on the average daily balance of your Savings Account and paid quarterly.

†Annual Percentage Yield (APY) is accurate as of January 1, 2009. No minimum balance is necessary to open the account or obtain the yield. Fees could reduce the earnings on the account. This is a promotional rate. Rates are subject to change without notice.
Contacts

NetSpend Corporation
Brad Russell, 512-539-5932
brussell@netspend.com

TOP TEN REASONS TO OWN ONE OR MORE PREPAID DEBIT CARDS

1. Paid Personal Referral Commissions. Refer your friends & family and earn money posted to your card.
2. Credit Rating. Protect your credit rating by using a card that is not linked to your master accounts.
3. Identity Theft Victims. When someone steals your identity, you need a more controlled way to spend.
4. Spousal Stipend. Some spouses need a better way to track their spending to control increased debt.
5. Online & Offline Spending. If you have $100 on your debit card that you're using to purchase things on and offline, a thief can't steal thousands from your personal account if they are able to obtain your card info.
6. Teenager Allowance Tracking. Giving a teenager a Debit Card is the better way to get them acclimated with spending wisely while they learn financial & personal responsibilities. Don't think that the school system is going to teach them what it took you years to learn--it's not going to happen.
7. Child entering into College. College is not the best time to rack up lots of debt while earning a degree. Using a Debit Card as a head start into the financial world, they will have a better understanding of spending and saving and you can always use the account to send them some money when the need arises and believe me, there will be occasions when you will have to send your child money.
8. Divorce. Divorce can be a nasty thing for anyone to go through, but why leave the relationship empty handed? Makes no sense for two people to split up and one get all the money and everything else it took years to build together. Sign up for several Debit Cards here if need be to protect your financial future and personal well being.
9. Cheating Mate. You and everyone else in the world wants to believe that our mates are faithful 100%, but the truth is quite the opposite at times. Regardless of your situation, you need to protect you and your children if your mate wonders and you find a divorce is just around the corner.
10. CA$H Heavy Personal Business. If you're in business for yourself and you are what they like to call Cash Heavy, meaning you have a lot of Cash paying customers, it is a good idea that you have a safe place or safe places to store your revenues while you continue your day to day business transactions. Get one Debit Card for Personal Usage and one Debit Card for Business expenses. Many of these Debit Cards have a high deposit limit of up to $10,000 with Direct Deposit and $5,000 with CA$H Deposits.

Using a Payday Loan for Vacation Expenses

Planning a much needed vacation can be exciting and can give you something to look forward to in the future. Depending on the vacation, it can be very important to ensure that you have a little extra cash on hand to cover any unexpected costs. Having extra money on hand can help your vacation go longer and smoother. For many, a great way to get extra money for a vacation is by using a payday loan to get the money now and then pay it back after the vacation. If a vacation is what you need and are ready to get away, then use a payday loan to help you get the extra money you need to finance your trip.
How Much Can I Borrow?

When you are taking a vacation one always is worried how much they are going to need and what they plan to spend. Depending on where your destination is, this may vary. Most of your money will go to eating out while you are on vacation and this can add up quickly, making your daily expenses more and more. Using a payday loan for extra expenses can help you cover costs and what you don't spend you can just bring back and use towards paying back your loan or other bills. How much you borrow can be up to you, most payday loan company's offer lending amounts from $100 to $1500, depending on your income. No matter how much you decide to borrow, you can rest assure that a payday loan can help you have a more relaxing, stress free vacation.

How to Use Your Payday Loan on Vacation

Once you have planned a vacation and have received a payday loan to help cover your expenses, now is the time to put your vacation money to use. Depending on what type of traveler you are and where your destination is, putting your money to use the appropriate way is important.

Here are some of the common vacation expenses:

* Plane Ticket
* Accommodations
* Dinning
* Souvenirs
* Admission Costs- Shows/Theme Parks/Parks/Museums/Exhibits

Being able to have the money you need for these expenses can be very relaxing and make your vacation a very enjoyable one.

Payday Loan Travel Limitations!

The great thing about a payday loan is that there are no limitations to where you can spend your money and how you spend it. The best thing is that you receive the requested funds and from there you are able to put them to use anyway that you like. Having this option allows you to enjoy your trip and put your borrowed money to use on things that you want without any limitations. Using your payday loan wisely is important, but it is also important to use it how you see fit that way you can enjoy your vacation.

To Fax or Not to Fax

To fax or not to fax, that is the question. Alright, you might be wondering more about that question, and that is why we are here. Let's talk a little bit about how you can go about faxing in a payday loan request, or if that is something that you even want to do. You need to know the possibilities of how every payday loan request will work out, so take your time and really get it done. You need fast cash relief, and that is what a payday loan will do. You should not settle for a poor experience when you can take your time and get everything done. Read on and make sure you get the fast cash that you truly want.

What Would You Fax In?

If you do not want to go into the payday loans store and get a loan, then sometimes companies will offer you the ability to fax information in. This means that you would have to fax in the application, a copy of your paycheck stub, proof you are a legal citizen, and proof of a bank account for transfer. This is a lot of things to fax over, so you need to make sure that you have a clear understanding of what they are going to want. The last thing you need to do is forget a valuable piece of information and hold up your process.
Should I Fax?

If you do not actually want to go into the store then this is a valuable method. It will allow you to just take your time and complete this process whenever you are ready. There are some people who have been really happy with the results that they have gotten thanks to fax payday loans. Like always you need to make sure that this is something that you want to do and something that you can handle correctly. If you do not want to fax then obviously you have some other options you can use to your payday loan advantage.
No Fax Needed

Faxing has really been replaced by the internet. People have found that they do not want to fax because they do not trust the fax machine as much as they trust the security on the internet. This is one of the big reasons why you might not want to fax, and you want to handle this some other way. Remember, you do not need a fax machine to do this, and there are some companies that will not even allow for faxes. Just take your time and make sure that you are safe, secure, and able to get the money that you really need.

Additional Resources: Please see ads to the right of this blog. They have been provided for you to help you better shop for the right payday loan for you and for your personal needs.

Prepaid Debit Cards: A Money Option

Traditionally, people think of banks as a place to put your money, and credit cards as a way to spend it, with debit cards being an interesting hybrid. They spend like a credit card, but draft out of your bank account. For many consumers, though, none of these options are good. Many people have difficulty tracking their spending with a debit card, and many don’t even qualify for a checking account. If this is you, don’t panic! You have other options.
Announcing a Prepaid Debit Card ready to save the day! Prepaid Debit Cards come in many varieties, depending on what your needs are. If your employer wants you to set up direct deposit, but you can’t get a bank account, there is a prepaid debit card that would be perfect for you. If you want a way to do some online spending, but don’t like to deal with banks or credit card companies, you can use a prepaid debit card. Load up once, spend when you need to, and then reload if you need to spend more. If you are tired of bank fees, credit card fees, interest charges, and so forth, you can get a prepaid debit card with a one-time fee and then never pay fees again. No matter what your needs, if the banks don’t like you, or you don’t like them, there is probably a prepaid debit card that would be perfect for you.
Prepaid debit cards are a great way to control your budget, too. Ever try sticking to cash spending, only to find that all your cash disappears? Consider getting separate prepaid debit cards for each budget category, and use them to control your spending. Prepaid debit cards can be a great way to better control your finances. In short, prepaid debit cards can definitely come to your rescue!  There are several ads and links here for you to click on and sign up for a prepaid debit card that can be reloaded time and time again and most can be funded from your bank account.

Some people want to keep some of their spending private from say the eyes of a spouse or significant other who might open and read their credit card statement. We’re not going to list what this spending might entail, but suffice to say, even if some merchants provide generic sounding names for purchases, a curious or suspicious spouse might want to know what the spending is all about.
A prepaid card offers a measure of privacy in that no bank statement is mailed to your house. You check your account by logging in to your account online. So you don’t generate a “paper trail.” Only you have access to your transaction history.
You can also set up direct deposit to have a chunk of change put on the card at regular intervals. This might be your “mad money” or “hobby fund.” It’s apart from your finances, taken out before the rest of your pay is recorded into your bank account as a deposit. Thus, somebody looking at your bank statement won’t know that you have already set aside your own private spending funds.

Sign up for one or for several.  Many require an initial load of only $40 and then after that load what you want up to a total of up to $10,000.  Remember to read the Terms & Conditions and only sign up for the ones that will meet your own personal needs.

CherokeeFinancialinc.com