How to Compare Prepaid Credit Card Fees

Not all pre paid credit cards are alike. Unfortunately, consumers that don't do enough research end up getting prepaid credit cards only to find out later that their card is loaded with hidden fees. It is important to read the fine print before signing up for a new prepaid credit card. Here are a few credit card fees you should look out for.

Difficulty: Moderate

Instructions

1. Look for retail and online purchase fees. Cards such as the Baby Phat Prepaid Visa Rushcard charges a one dollar retail and a one dollar online purchase fee (called a convenience fee). In other words, every time someone uses the Baby Phat Prepaid Visa Rushcard, they pay a $1.00 fee subject to a maximum of $10 per month.

2. Be aware of ATM fees. While this is not uncommon, consumers should be aware of the amount they’re charged to make ATM withdrawals. ATM fees vary depending on the transaction involved. Some prepaid cards charge one fee for withdrawal and another lesser fee for balance inquiries.

3. Look for teller fees. The AccountNow Vantage Prepaid MasterCard charges $4.95 for using a live bank teller to make a withdrawal while an ATM withdrawal will cost you $2.00. In this case it’s cheaper to use the ATM machine.

4. Watch for customer service fees. Some pre paid credit card companies charge as much as $2.00 for speaking to a customer service representative while others provide the service for free. If you can, search for answers to your questions online as it seems that most, if not all, provide free online service.

5. Inquire about an activation fee. Cards such as the Baby Phat Prepaid Visa Rushcard charge as much as $19.95 for card activation while AccountNow Vantage Prepaid MasterCard charges $9.95, but will waive the activation fee if you fund your card via direct deposit.

6. Familiarize yourself with the monthly maintenance and inactivity fees. BuyRIGHT Pre-Paid MasterCard charges $4.95 monthly activation fee and they will also charge another $4.95 if the account is inactive. All Access Prepaid MasterCard does not charge a monthly maintenance fee but they do charge $5.95 if the account becomes inactive. As you can see, it’s very important to read the fine print.

Tips & Warnings

• Compare prepaid credit cards by visiting credit.com.
• You might fare better if you open an account with your lo.cal credit union and use their debit card. The fees are much lower
• Always read the terms and conditions before signing up for a prepaid credit card.

Resources

• Credit.com
• Baby Phat PrePaid Visa Rushcard
• AccountNow Vantage Prepaid MasterCard
• How to Get a Reloadable Credit Card

[t2webnetwork]

on 10/22/2009 Prepaid cards are a great way to control your spending, and this is a great article on how to compare the fees. Great work!

[justicemek]

on 10/15/2008 This article has added to my knowledge about prepaid credit cards. thanks a lot