Prepaid gift cards are now the most popular gift requested in the United States. Additionally, more and more companies are using prepaid gift cards for numerous types of consumer rewards and rebates. Simply put, the odds of a prepaid card falling into your hands is higher than ever. Here’s a short list of the seven deadly fees of prepaid cards, and how you can overcome them while maximizing personal benefit.
Prepaid cards are notorious for fees, and while things have recently improved due to laws passed in April 2019, consumers should always read the fine print before using prepaid cards. Here’s our list of sneaky prepaid card fees waiting to trip you up.
1. Monthly Fees
Some prepaid cards still have monthly fees attached to them. These fees often kick in after the first year of activation, but some are active from the first day!
2. Transaction Fees
If your card doesn’t have monthly fees attached to it, ensure that there are no transactional fees. That’s right, certain types of transactions incur transaction fees. Laws have been passed as recently as April of this year to better protect consumers from hidden fees, but enforcement for those laws is not yet in effect. Bottom line, triple check for hidden fees…and then check again.
3. Balance Inquiry Fees
Some cards charge a fee for every time you check the balance. We’d tell you to skip the balance inquiry altogether, but the decline fees are often even higher.
4. Decline Fees
If you have $22 left on a card and attempt to purchase an item that costs $23, your purchase can be declined and a fee may be assessed against your remaining balance. To check the balance or not to check the balance. That is the question…
5. Inactivity Fees
Don’t think about it for too long though, or you might be charged for an inactivity fee. Not all cards charge these fees and the length of time it takes to incur the fee varies. Once again, read the fine print.
6. Bill Payment Fees
Some prepaid cards come with the option to pay your bills through the card provider’s website for a fee. Always compare the rates on any services offered by the card provider.
7. Replacement Fees
While there’s no guarantee that your money will be recovered should your prepaid card be stolen or lost, a replacement card will likely incur… you guessed it, a fee.
If you want to avoid all the pitfalls of the seven deadly fees, download the free PREPAID2CASH mobile app today. PREPAID2CASH is committed to delivering maximum benefit to customers by allowing them to convert prepaid cards into cash. All service costs are clearly communicated upfront with no surprises along the way, and transactions can be processed in as little as 24 hours.
In a society where overspending is the norm, we’re challenging people to cut the card and keep the cash. We’ll be posting more articles in the weeks ahead to demonstrate just how many dollars prepaid cards are costing us, and how saving a little today can earn us a lot tomorrow. We know, we sound like your grandpa, but grandpa was cool as hell! And so is cash.