In recent years, reloadable debit cards and prepaid debit cards have exploded onto the market. This is good news for you. There has been a huge surge of competition. This results in many more choices for you and much lower fees. Check out these 5 tips below to make sure you get the best reloadable prepaid card.
1. Monthly Fees
You are typically going to have to pay a monthly fee for your reloadable debit card. We have seen cards charge up to $20, as a monthly fee. You should instead look for a monthly fee of about $5 or less. It is not uncommon for your monthly fee to get lowered. If you sign up for direct deposit with your card.
2. Customer Service
We are fully aware that you are probably not going to be using customer service everyday. On the rare occasions when you do need to speak with someone from the company, that is holding onto your money. It is clearly important that you can do this easily and conveniently.
It is shocking to see that many reloadable credit cards will charge you a fee, to speak with a live customer service representative. After all, this is the company that is holding your hard-earned money. Did you know, there are celebrity reloadable prepaid cards like the Suze Orman credit card, it will provide you one free call, per month.
Then, on any additional calls to speak with a live customer service representative, it will cost you $2.00 every time! On the other hand, there is the American Express reloadable card. This is one of the newest major credit card issuers to get into the prepaid reloadable market. They give you free customer service. You will pay no fees and have no hassles.
On a side note, American Express credit card holders are big fans of their customer service team. They say the Amex customer service team is understanding, friendly, and genuinely want to help you. This is a big reason American Express has created such a loyal following. Their customer service team has received countless awards and industry recognition.
3. Type of Reloadable Credit Cards
Currently, there are a wide variety of reloadable prepaid debit cards. There are cards created for teenagers, college students, and even children. The important aspect is today, you can now get many reloadable prepaid debit cards from a variety of companies, issued as: a MasterCard, American Express, or a Discover prepaid card.
A Prepaid Visa or MasterCard is going to have the highest acceptance rate among retailers. As of the publishing of this article, it is reported that American Express is accepted at 90% of locations that accept Visa and MasterCard.
If you choose to get an American Express reloadable card or a Discover prepaid card. You will in turn have some limits on where your reloadable debit card is accepted. We are confident that American Express is gaining more retailers that will accept their reloadable credit card. We believe that this is one of the reasons Amex has so aggressively entered the prepaid market.
4. Purchase Fee or Activation Fee
You should not be required to buy a reloadable prepaid card or pay an activation fee. Instead, you should be given a free reloadable card with free activation. We have seen a few of the newer debit cards charging around $5 as a purchase fee or activation fee.
5. Avoid Hidden Fees
There is a variety of fee plans, that most reloadable debit cards will now offer you. There is often a flat monthly fee, or you can use a pay-as-you-go fee plan. For the vast majority of people, we strongly encourage you to choose a flat monthly fee program.
We have reviewed prepaid reloadable cards that will charge you on a pay-as-you-go fee plan up to $2.00 for every purchase you make! This fee is outrageous! Please avoid a nightmare situation where you are paying a $2.00 fee, every time you buy a pack of bubble gum at the grocery store.
Before you apply for a reloadable debit card take a moment to review the fine print and fee plans in detail. Two of the best prepaid cards we recommend are the Bluebird American Express reloadable card and the Capital One Prepaid credit card. It is not going to cost you an arm and a leg to get a good reloadable debit card.
However, like all business transactions, it is important to have a full understanding and accurate expectation of your reloadable prepaid debit card before you sign on the dotted line. If you’re suffering from a less than perfect credit score, get a free credit consultation by calling 1-877-418-7596. And for more tips with Dan Willis, sign up for our free newsletter.
Get a FREE Credit Consultation