Experts: Prepaid Debit Cards Fees Can Add Up

July 9, 2013
ABC13 (Houston) 
credit card news

Many consumers choose to use prepaid debit cards because they do not require a bank account; however, associated fees can make them expensive to use. "You have to pay money to use a prepaid debit card and there are alternatives out there where you can get into a low- or no-cost banking account that won't charge you the same fees as a prepaid debit card," explains Alex Obregon, chair of the Bank on Houston financial education committee. Bank on Houston not only offers affordable accounts but also financial education to help consumers learn to handle their money responsibly. A survey of prepaid debit cards, meanwhile, found that 62 percent of prepaid card offers do not have features that help meet basic consumer needs like online bill paying and free check loading. There are some circumstances when it makes sense to use prepaid debit cards, however, including for online shopping that will not compromise banks accounts or card limits. Those who want to use prepaid debit cards should shop around to get the lowest fees.
Web Link

Abstract News © Copyright 2008-2013 INFORMATION, INC.
Powered by Information, Inc.

Stay Updated

Join the fight against predatory lending. Enter your e-mail to sign up for breaking news, action alerts, and CRL's original research.

   Please leave this field empty

Help Us End Predatory Lending

Predatory lending destroys family wealth, and preys on our most vulnerable communities. You can help us end abusive lending practices by donating to CRL, or by sharing our work with others.