My Profile
Five Predictions on $255 Payday Loans Online Same Day in 2023
Prepaid Debit Cards Are Popular but Still Have Downsides
Advertiser disclosure You're our first priority. Everytime. We believe that everyone should be able to make financial decisions without hesitation. Although our site doesn't feature every company or financial product on the market We're pleased that the advice we provide, the information we provide and the tools we create are independent, objective, straightforward -- and free. How do we earn money? Our partners compensate us. This may influence which products we write about (and the way they appear on the site) However, it doesn't affect our recommendations or advice that are based on hundreds of hours of study. Our partners do not promise us favorable reviews of their products or services. .
(image: https://i.pinimg.com/originals/54/28/bc/5428bc5845fca5c44e61f71cd4c5b905.jpg)Prepaid debit cards are popular But they do have some drawbacks
By Spencer Tierney Senior Writer | Certificates of Deposit and ethical banking, as well as banking deposits Spencer Tierney is a consumer banker writer at NerdWallet. He has written about finances for individuals since the year 2013, with a focus on certificates of deposit, as well as other banking topics. The work he has written for him was featured in The Washington Post, USA Today, The Associated Press and the Los Angeles Times, among others. The location of his work is Berkeley, California.
Aug 10 10, 2016
A majority of the products we feature are from our partners, who pay us. This influences which products we write about and where and how the product is featured on a page. However, this doesn't affect our assessments. Our opinions are entirely our own. Here is a list of and .
Walk into a convenience store like 7-Eleven or CVS Pharmacy and you're likely to see some pre-paid debit cards hung on a rack.
These cards, employed for budgeting and as checking account substitutes, are getting more popular. Card purchases made by the largest prepaid issuers increased 15.7 percent in 2014 when compared with the previous year as per The Nilson Report, which analyzes information from the industry of payment.
>> MORE:
Despite their widespread use they do face their share of problems. In the last year both experienced technical glitches which led to cardholders getting locked out of their accounts for as long as a week. In that time, all funds on these cards, even income that was directly deposited into them, could not be accessed. But even outside of drastic situations the prepaid debit cards come with numerous disadvantages.
Frequent fees
Prepaid debit cards tend to charge you fees for services that you are used to with a checking account, such as free ATM use, customer support, and online and mobile services. And unlike checking accounts, prepay cards typically don't have ways to waive their monthly charges.
>> MORE:
Janice Elliot-Howardis an author living in Atlanta initially had a prepaid card that charged her a small fee every purchase. When she realized the amount that was costing she promptly canceled the card and bought one that doesn't charge transaction fees for purchases.
She isn't able to avoid all fees, though.
"The drawback is the ATM charge [for cash withdrawals], but I do that very rarely," she says.
One saving grace for many prepaid debit cards is that they don't permit overdrafts or have overdraft-related fees. With a checking account you could be hit with an of around $30 or $35 for spending more than what you've got within your accounts. However, prepaid cards' frequent charges for transactions or ATM withdrawals can still increase.
It's not always easy to find out the details of your card.
Elizabeth Avery bought a prepaid debit card in a drugstore to travel overseas but then realized that the card could not be used in foreign countries.
"I find that the small prints are where I'm noticing the problems," says Avery, creator of the travel website Solo Trekker 4 U and an investment banker in private equity in Washington, D.C. She was planning to use the card at ATMs in the international market to withdraw cash, but found no mention on the outside packaging that it was only for use in the United States.
But that's not all the information that can be missing.
"The disclosure for prepaid cards sold at retail doesn't need that all fees have to be mentioned on the outside packaging," says Thaddeus King who is the head of the consumer banking initiative in the Pew Charitable Trusts in Washington, D.C.
The protections aren't there yet
The debit card you use to pay for purchases, which are similar to debit and credit cards, are part of payment networks such as Visa and MasterCard. As a result, you have fraud protections for cards, but they do not have the protections that you get with an account at a bank.
"When it pertains to payment of bills and ATM transactions, these are not done on the Visa and MasterCard network," King says.
Other payment platforms offer similar exclusions. For these transactions, King says you must depend on the disclosures provided by your card that might not offer protections apart from those on purchases.
Prepaid debit cards don't have to be insured by the Federal Deposit Insurance Corp. (FDIC). FDIC, which is how customers can recover their money in the event that their bank or card issuer fails. While many issuers of prepaid cards offer coverage voluntarily however, their agreements with cardholders may say that the terms are subject to change at any time.
Checking accounts, in contrast, must have more fraud protection due to a policy that covers the electronic transactions as well as ATM transactions. Additionally, they must be covered through the FDIC.
The good news for prepaid debit card holders may be in the works. According to the Consumer Financial Protection Bureau plans to announce later in the year that would extend fraud protections for these cards to match the protections for checking accounts and debit cards.
"Prepaid debit card users should have the same protections afforded debit card users," says Christina Tetreault who is a legal counsel at the staff of Consumers Union in San Francisco.
Author bio Spencer Tierney is an expert in the field of certificates of deposit at NerdWallet. His work has been highlighted by USA Today and the Los Angeles Times.
In a similar vein...
Find a better savings account
Check out NerdWallet's recommendations for the top high-yield online savings accounts.
Dive even deeper in Banking
Find out more money-saving strategies right to your inbox
Join us and we'll send you Nerdy content on the topics in finance that matter most to you as well as other strategies to help you get more value from your money.
In case you beloved this informative article along with you desire to acquire more information relating to $255 Payday Loans Online Same Day (loanwq.site) kindly pay a visit to our own web page.
Five Predictions on $255 Payday Loans Online Same Day in 2023
Prepaid Debit Cards Are Popular but Still Have Downsides
Advertiser disclosure You're our first priority. Everytime. We believe that everyone should be able to make financial decisions without hesitation. Although our site doesn't feature every company or financial product on the market We're pleased that the advice we provide, the information we provide and the tools we create are independent, objective, straightforward -- and free. How do we earn money? Our partners compensate us. This may influence which products we write about (and the way they appear on the site) However, it doesn't affect our recommendations or advice that are based on hundreds of hours of study. Our partners do not promise us favorable reviews of their products or services. .
(image: https://i.pinimg.com/originals/54/28/bc/5428bc5845fca5c44e61f71cd4c5b905.jpg)Prepaid debit cards are popular But they do have some drawbacks
By Spencer Tierney Senior Writer | Certificates of Deposit and ethical banking, as well as banking deposits Spencer Tierney is a consumer banker writer at NerdWallet. He has written about finances for individuals since the year 2013, with a focus on certificates of deposit, as well as other banking topics. The work he has written for him was featured in The Washington Post, USA Today, The Associated Press and the Los Angeles Times, among others. The location of his work is Berkeley, California.
Aug 10 10, 2016
A majority of the products we feature are from our partners, who pay us. This influences which products we write about and where and how the product is featured on a page. However, this doesn't affect our assessments. Our opinions are entirely our own. Here is a list of and .
Walk into a convenience store like 7-Eleven or CVS Pharmacy and you're likely to see some pre-paid debit cards hung on a rack.
These cards, employed for budgeting and as checking account substitutes, are getting more popular. Card purchases made by the largest prepaid issuers increased 15.7 percent in 2014 when compared with the previous year as per The Nilson Report, which analyzes information from the industry of payment.
>> MORE:
Despite their widespread use they do face their share of problems. In the last year both experienced technical glitches which led to cardholders getting locked out of their accounts for as long as a week. In that time, all funds on these cards, even income that was directly deposited into them, could not be accessed. But even outside of drastic situations the prepaid debit cards come with numerous disadvantages.
Frequent fees
Prepaid debit cards tend to charge you fees for services that you are used to with a checking account, such as free ATM use, customer support, and online and mobile services. And unlike checking accounts, prepay cards typically don't have ways to waive their monthly charges.
>> MORE:
Janice Elliot-Howardis an author living in Atlanta initially had a prepaid card that charged her a small fee every purchase. When she realized the amount that was costing she promptly canceled the card and bought one that doesn't charge transaction fees for purchases.
She isn't able to avoid all fees, though.
"The drawback is the ATM charge [for cash withdrawals], but I do that very rarely," she says.
One saving grace for many prepaid debit cards is that they don't permit overdrafts or have overdraft-related fees. With a checking account you could be hit with an of around $30 or $35 for spending more than what you've got within your accounts. However, prepaid cards' frequent charges for transactions or ATM withdrawals can still increase.
It's not always easy to find out the details of your card.
Elizabeth Avery bought a prepaid debit card in a drugstore to travel overseas but then realized that the card could not be used in foreign countries.
"I find that the small prints are where I'm noticing the problems," says Avery, creator of the travel website Solo Trekker 4 U and an investment banker in private equity in Washington, D.C. She was planning to use the card at ATMs in the international market to withdraw cash, but found no mention on the outside packaging that it was only for use in the United States.
But that's not all the information that can be missing.
"The disclosure for prepaid cards sold at retail doesn't need that all fees have to be mentioned on the outside packaging," says Thaddeus King who is the head of the consumer banking initiative in the Pew Charitable Trusts in Washington, D.C.
The protections aren't there yet
The debit card you use to pay for purchases, which are similar to debit and credit cards, are part of payment networks such as Visa and MasterCard. As a result, you have fraud protections for cards, but they do not have the protections that you get with an account at a bank.
"When it pertains to payment of bills and ATM transactions, these are not done on the Visa and MasterCard network," King says.
Other payment platforms offer similar exclusions. For these transactions, King says you must depend on the disclosures provided by your card that might not offer protections apart from those on purchases.
Prepaid debit cards don't have to be insured by the Federal Deposit Insurance Corp. (FDIC). FDIC, which is how customers can recover their money in the event that their bank or card issuer fails. While many issuers of prepaid cards offer coverage voluntarily however, their agreements with cardholders may say that the terms are subject to change at any time.
Checking accounts, in contrast, must have more fraud protection due to a policy that covers the electronic transactions as well as ATM transactions. Additionally, they must be covered through the FDIC.
The good news for prepaid debit card holders may be in the works. According to the Consumer Financial Protection Bureau plans to announce later in the year that would extend fraud protections for these cards to match the protections for checking accounts and debit cards.
"Prepaid debit card users should have the same protections afforded debit card users," says Christina Tetreault who is a legal counsel at the staff of Consumers Union in San Francisco.
Author bio Spencer Tierney is an expert in the field of certificates of deposit at NerdWallet. His work has been highlighted by USA Today and the Los Angeles Times.
In a similar vein...
Find a better savings account
Check out NerdWallet's recommendations for the top high-yield online savings accounts.
Dive even deeper in Banking
Find out more money-saving strategies right to your inbox
Join us and we'll send you Nerdy content on the topics in finance that matter most to you as well as other strategies to help you get more value from your money.
In case you beloved this informative article along with you desire to acquire more information relating to $255 Payday Loans Online Same Day (loanwq.site) kindly pay a visit to our own web page.