Buyer Beware: Pre-Paid Debit Card Fees
By: CNN News
Updated: May 8, 2012
A pre-paid debit card can be a good option for people who don't have a checking account and don't want to carry around cash, but there are fees and like many financial products, it pays to shop around.
BankRate.com surveyed 18 of the most popular debit cards and found that monthly fees were the most common charge. 12 of the 18 have a monthly fee, ranging from $2.50 to around $10. Activation fees are also common and can run up to $15. If you don't use your pre-paid card for a year or more, you could be charged an inactivity penalty and if you request a statement by mail instead of online, some card issuers will charge you as much as $6 for the privilege.
Other, less common fees are imposed for things like customer service and declined transactions or ATM fees, which are on top of what you pay at the ATM.
The good news is all of these fees are easy to avoid if you do your homework.
Plan out what you will use the card for and pick one that fits the plan. Also, if you end up being charged for multiple services, think about opening a free checking account with a debit card. Many of these fees don't apply to those kinds of accounts.
BankRate.com has a complete list of all the cards in the survey and what fees they charge posted on its website. Click here to check it out. Don't worry -- that much is free.
BankRate.com surveyed 18 of the most popular debit cards and found that monthly fees were the most common charge. 12 of the 18 have a monthly fee, ranging from $2.50 to around $10. Activation fees are also common and can run up to $15. If you don't use your pre-paid card for a year or more, you could be charged an inactivity penalty and if you request a statement by mail instead of online, some card issuers will charge you as much as $6 for the privilege.
Other, less common fees are imposed for things like customer service and declined transactions or ATM fees, which are on top of what you pay at the ATM.
The good news is all of these fees are easy to avoid if you do your homework.
Plan out what you will use the card for and pick one that fits the plan. Also, if you end up being charged for multiple services, think about opening a free checking account with a debit card. Many of these fees don't apply to those kinds of accounts.
BankRate.com has a complete list of all the cards in the survey and what fees they charge posted on its website. Click here to check it out. Don't worry -- that much is free.
