Prepaid debit cards?

Marig0ld

I want to get peoples' opinions on this topic, since the amount of options is overwhelming.

A little background: I'm 26 (as of yesterday, late 20s ugh), and my fiance and I have excellent credit. We are currently saving money for our wedding and a down payment on a larger home, as we live in a condo now that we own. We have been able to save money by giving ourselves an "allowance" each week for spending money (food, shopping, etc.)

It's been great so far, but the only issue is if I want to buy something online, which is hard to do since I only have cash. So I was thinking of getting one of those prepaid debit cards, so it would be almost like carrying cash, but I would be able to shop online. But I am iffy about the fees and loading money onto the card. So I am looking for a card where I can:

-Transfer from my checking account for no fees
-No monthly fee (or a very small one, if I must)
-NO TRANSACTION FEE, that's a big one

Does that even exist??!! I know they design a lot of those cards for people with sh!tty credit, which I don't have. I just want to be able to have my cash on a card with minimal fees and not have to worry about paying out the @$$ if I want to purchase something from Amazon.com. Any suggestions?

onedayillbeamilf

I've always wondered about those cards too. I'm too chicken to try them though.

Qarol

You're opposed to having one credit card for emergencies why?

I think those prepaid cards are a ripoff. I don't think you can find them without some kind of fee or multiple fees.

tamsinwhitfield

I don't understand. What's the point in a prepaid debit card (credit card I would sort of understand). Wouldn't it be easier just to open an additional joint account, allocate so much money to that each month, and have a debit card attached?

BAMFMeredith

You're opposed to having one credit card for emergencies why?

I think those prepaid cards are a ripoff. I don't think you can find them without some kind of fee or multiple fees.

True. They pretty much all have like a monthly account fee or crazy ATM fees associated. Would you be opposed to having a debit card attached to your bank account? Those are generally free through your bank. Or as another poster suggested, you could open up one, LOW limit credit card for online purchases/emergencies, and just pay the balance off every month. My grandmother does that, and she's got excellent credit.

tig_ol_bitties

So I am looking for a card where I can:

-Transfer from my checking account for no fees
-No monthly fee (or a very small one, if I must)
-NO TRANSACTION FEE, that's a big one

Does that even exist??!!

Sounds like a regular debit card. All a debit card is is a card that deducts straight from your checking account.

Justjoshin

A Paypal debit card is linked to your paypal account.

You can transfer money to and from your bank accounts without any fees.
You can use the card as an ATM Card.

And at least with mine, I get 1.5% cash back on purchases when I use it as a credit card.

GasMasterFlash

One of my favorite blogs, The Consumerist, has some info:

http://consumerist.com/cgi-bin/mt/mt-search.cgi?IncludeBlogs=1&limit=20&search=prepaid+card

HotCuppaJo

I get prepaid debit cards/credit cards sent to me sometimes from my Blue Cross Blue Shield Points to Blue program for exercising... They are a pain. Some places won't accept them... And you can't tip, if you are at a restaurant. Regular credit cards are much better.. .I've ALWAYS paid off my balance every month and have never bought something w/ a credit card that I DIDN'T have the money (cash) to cover. If you stick with that mentality, you'll never get into credit card debt...and your credit score will go even higher!

rml_16

Why don't you just get a regular debit card through your checking account?

You can still follow a budget, use "cash" in credit card form and no fees.

coliema

Not all places will accept the prepaid cards. I would just get a regular card and a checking account, and get it deducted right from the checking account. I have a checking/savings account at my bank and a card connected directly to my account, no fee's.

dinosnopro

Visa gift card? I don't think there are any fees, and I'm pretty sure you can reload them.

odusgolp

:huh:

I really don't get this... By nature, all debit cards are pre-paid. They're declined if they aren't funds in the associated account.

Prepaid CREDIT is different...

Marig0ld

:frown:

You're opposed to having one credit card for emergencies why?

I think those prepaid cards are a ripoff. I don't think you can find them without some kind of fee or multiple fees.

Oh no no no no, we have definitely one of those, no worries there.

A lot of folks mentioned using the debit card that comes with our checking account. I have one of those, of course, but I like having a set amount of money that I can spend. Which I can do with a checking account, but I pay various bills and debt out of there, alogn with transferring to a savings account. So I'd rather not use it for my spending money, since a lot of money is changing hands at one time. Therefore, I just want to be able to have a set amount of spending money without doing the guesswork that comes with using. Which I could do carrying cash, but I want to be able to purchase stuff online every once in a while. Does that make sense? :frown: <---this was the closest I could find to an "overwhelmed" smiley

Marig0ld

I don't understand. What's the point in a prepaid debit card (credit card I would sort of understand). Wouldn't it be easier just to open an additional joint account, allocate so much money to that each month, and have a debit card attached?

I'm trying to talk my fiance into doing this, he's just a bit hard-headed about some things. :ohwell:

rml_16

:frown:

You're opposed to having one credit card for emergencies why?

I think those prepaid cards are a ripoff. I don't think you can find them without some kind of fee or multiple fees.

Oh no no no no, we have definitely one of those, no worries there.

A lot of folks mentioned using the debit card that comes with our checking account. I have one of those, of course, but I like having a set amount of money that I can spend. Which I can do with a checking account, but I pay various bills and debt out of there, alogn with transferring to a savings account. So I'd rather not use it for my spending money, since a lot of money is changing hands at one time. Therefore, I just want to be able to have a set amount of spending money without doing the guesswork that comes with using. Which I could do carrying cash, but I want to be able to purchase stuff online every once in a while. Does that make sense? :frown: <---this was the closest I could find to an "overwhelmed" smiley

So, basically, you'd rather spend extra money to stay within a budget than add more to your checking account and do some math? That doesn't sound like a very logical idea to me.

odusgolp

Just open a separate checking account with debit card that you can transfer funds to and fro online... Voila.

Jade17694

Visa gift card? I don't think there are any fees, and I'm pretty sure you can reload them.

The man talks sense.

Qarol

:frown: <---this was the closest I could find to an "overwhelmed" smiley

awww...then if I were you, I would open up another checking account with the set amount you want to spend each month and use the debit card associated with that account. And make sure to opt out of overdraft. That way, the card is declined if there aren't enough funds.

Or like someone said, maybe those Visa gift cards would work. Just make sure there aren't any hidden fees.

LittleLolita

I don't understand. What's the point in a prepaid debit card (credit card I would sort of understand). Wouldn't it be easier just to open an additional joint account, allocate so much money to that each month, and have a debit card attached?

^^ This is the best option. I am a manager at a bank, and if someone asked me the same question, this is what I would recommend. Those prepaid cards are a hassle and have too many fees.

NewTeena

I hate prepaid credit cards. They are not reloadable, not only do they charge an activation fee at time of purchase, but they also charge a fee if you make more than the allowable number of transactions, you cannot use the entire balance if you don't use it all up in one transaction, then after a period of time (usually a year) they charge ANOTHER fee simply because the card still has a balance and it continues charging the card the fee annually until it has a $0 balance.

You really are better off with a credit card, either a regular one or a secured one (a secured card is guaranteed to not let you go over the limit should the information get stolen whereas a regular one might increase your credit limit if you have good credit and decide to make a purchase larger than the limit available to you).

I've never heard of a prepaid debit card though.

sjdoman

I was also going to say PayPal

Marig0ld

:frown:

You're opposed to having one credit card for emergencies why?

I think those prepaid cards are a ripoff. I don't think you can find them without some kind of fee or multiple fees.

Oh no no no no, we have definitely one of those, no worries there.

A lot of folks mentioned using the debit card that comes with our checking account. I have one of those, of course, but I like having a set amount of money that I can spend. Which I can do with a checking account, but I pay various bills and debt out of there, alogn with transferring to a savings account. So I'd rather not use it for my spending money, since a lot of money is changing hands at one time. Therefore, I just want to be able to have a set amount of spending money without doing the guesswork that comes with using. Which I could do carrying cash, but I want to be able to purchase stuff online every once in a while. Does that make sense? :frown: <---this was the closest I could find to an "overwhelmed" smiley

So, basically, you'd rather spend extra money to stay within a budget than add more to your checking account and do some math? That doesn't sound like a very logical idea to me.

You'd be surprised how math-averse I can be....:bigsmile:

rml_16

:frown:

You're opposed to having one credit card for emergencies why?

I think those prepaid cards are a ripoff. I don't think you can find them without some kind of fee or multiple fees.

Oh no no no no, we have definitely one of those, no worries there.

A lot of folks mentioned using the debit card that comes with our checking account. I have one of those, of course, but I like having a set amount of money that I can spend. Which I can do with a checking account, but I pay various bills and debt out of there, alogn with transferring to a savings account. So I'd rather not use it for my spending money, since a lot of money is changing hands at one time. Therefore, I just want to be able to have a set amount of spending money without doing the guesswork that comes with using. Which I could do carrying cash, but I want to be able to purchase stuff online every once in a while. Does that make sense? :frown: <---this was the closest I could find to an "overwhelmed" smiley

So, basically, you'd rather spend extra money to stay within a budget than add more to your checking account and do some math? That doesn't sound like a very logical idea to me.

You'd be surprised how math-averse I can be....:bigsmile:

Not really. I'm in the same boat. But budgeting isn't that difficult. Seriously, think about what you want to do. How much sense to it make to spend money you don't need to spend in order to stay in a budget? Just decide you have X dollars to spend on whatever you are planning to buy online and don't spend more than that amount. If you aren't paying those fees, you get to spend more on something you need or want, right?

tamsinwhitfield

I don't understand. What's the point in a prepaid debit card (credit card I would sort of understand). Wouldn't it be easier just to open an additional joint account, allocate so much money to that each month, and have a debit card attached?

^^ This is the best option. I am a manager at a bank, and if someone asked me the same question, this is what I would recommend. Those prepaid cards are a hassle and have too many fees.

Seriously. If you're trying to keep track of what you're spending (and allocating funds accordingly), you can't go wrong with multiple accounts via a single bank for ease of use. I have about five in total that are used actively (joint account, personal saving account, personal current account, 'ladies' nice things' account, ISA), but since they're all managed from a single location online, it's incredibly easy to keep track. Simple.

Onesnap

ok.

Prepaid debit cards are a BAD idea if you travel.

Car rental companies charge a HOLD on the card until you bring the car back ($100s). And also some hotels do the same thing where it is a debit card and a HOLD goes on there until you check out. I'm going on a cruise in June and they do a hold of $400 per person or something like that.

Bad idea if it is a debit card versus credit.

If you don't travel don't worry about it.

NoAdditives

:frown:

You're opposed to having one credit card for emergencies why?

I think those prepaid cards are a ripoff. I don't think you can find them without some kind of fee or multiple fees.

Oh no no no no, we have definitely one of those, no worries there.

A lot of folks mentioned using the debit card that comes with our checking account. I have one of those, of course, but I like having a set amount of money that I can spend. Which I can do with a checking account, but I pay various bills and debt out of there, alogn with transferring to a savings account. So I'd rather not use it for my spending money, since a lot of money is changing hands at one time. Therefore, I just want to be able to have a set amount of spending money without doing the guesswork that comes with using. Which I could do carrying cash, but I want to be able to purchase stuff online every once in a while. Does that make sense? :frown: <---this was the closest I could find to an "overwhelmed" smiley

So, basically, you'd rather spend extra money to stay within a budget than add more to your checking account and do some math? That doesn't sound like a very logical idea to me.

Yeah. I don't understand why it's sooooo difficult to keep track of a couple purchases in addition to your bills, etc. That's the beauty of online banking. Things show up almost immediately.

Onesnap

p.s. Hubby and I have EXCELLENT credit. However one of our Capitol One credit cards was raised from 3% to 13% interest. They blamed the economy even though we always pay more than the minimum due and always on time. So, I used that card to charge my entire 4 years of grad school BOOM. So the card lives in a drawer now and I hate Capitol One with a passion. Greedy *kitten*. They did the same thing to friends of mine raising their rates to 23% and of course if you transfer the balance to another card or shut down that card your credit score plummets.

onedayillbeamilf

Visa gift card? I don't think there are any fees, and I'm pretty sure you can reload them.

Visa gift cards have a $4.95 activation fee....I'm not sure if that applies to reloads or not.

Pandorian

For one time purchases with the odd "internet vendor" that I don't have a "relationship" with, the pre-paid gift cards are a small price for the peace of mind, the most they can get if it's a scam is the amount you bought the card for... Trouble is limits on how much the gift cards are available for as most retailers won't do a split across multiple cards, which makes sense since they pay a fee for the "privilege" of accepting the card over cash.

but $4.95 to get a $100 card for a $90ish dollar purchase leaving them up to $10ish to scam me with if they choose to? worth my peace of mind, would cost me more than that in interest if they scammed the actual card.

Then again it doesn't "have" to be scammers, I remember once paying $25 for shipping on something that I needed to have "now" and it arrived at my door with a 50 cent stamp on a bubble envelope.... yeah they don't get my business anymore

DonnaRe2012

I want to get peoples' opinions on this topic, since the amount of options is overwhelming.

A little background: I'm 26 (as of yesterday, late 20s ugh), and my fiance and I have excellent credit. We are currently saving money for our wedding and a down payment on a larger home, as we live in a condo now that we own. We have been able to save money by giving ourselves an "allowance" each week for spending money (food, shopping, etc.)

It's been great so far, but the only issue is if I want to buy something online, which is hard to do since I only have cash. So I was thinking of getting one of those prepaid debit cards, so it would be almost like carrying cash, but I would be able to shop online. But I am iffy about the fees and loading money onto the card. So I am looking for a card where I can:

-Transfer from my checking account for no fees
-No monthly fee (or a very small one, if I must)
-NO TRANSACTION FEE, that's a big one

Does that even exist??!! I know they design a lot of those cards for people with sh!tty credit, which I don't have. I just want to be able to have my cash on a card with minimal fees and not have to worry about paying out the @$$ if I want to purchase something from Amazon.com. Any suggestions?


The ONLY person/corp. I would trust for a pre-paid : http://www.theapprovedcard.com/


Suze Orman