Prepaid cards are an easy and convenient way to pay for purchases. Available almost everywhere - you can easily choose your store or gas station local - they are a great alternative to credit cards and cash. But how they work and the hidden costs involved can be a bit mysterious, so we did some research to determine the best options out there.
How do prepaid cards work?
Prepaid cards are loaded with your money, usually from a linked bank account, but alternate from a physical location and used as money. The monetary value of the card is equal to how much you put on it. For example, if you load a card with $ 50 (or buy one of those $ 50 prepaid cards at the gas station), you can buy anything for $ 50, but you can not exceed this limit unless you "load" the card with more money. Because prepaid cards do not require a credit check or even a bank account, a person with limited or poor credit history can get. And you can use them for everything that you would normally use a credit card as payment of your utility bills online or buying something online. In fact, many people use prepaid cards as a substitute for having a bank account; they deposit their paycheck onto the card and use it to pay for all their purchases.
Prepaid cards can cost you money
The convenience of prepaid cards can be a double-edged sword. They often include sneaky charges for any of the initial sign up to load the card with more money and using an ATM. These fees add, turning your prepaid card in the pit of money before you know it. Many a customer has been hit with a surprisingly high monthly bill ($ 30? !! Why do I need $ 30 ??) and for allegedly using their free prepaid card.
How to avoid the trap of money
Serve from American Express
First, serving a no registration fee and if you direct deposit your paycheck at the map there no charge monthly (otherwise its $ 1 per month). It is free and easy to load the card with more direct deposit funds from a checking / savings, using a different credit card or CVS or 7-ELEVEN pharmacy. And there free withdrawals over 24,000 MoneyPass ATMs in the United States, otherwise it is $ 2 for a non-MoneyPass ATM. A more convenient (and free) to get money is to do when you use your card to pay another transaction (aka "point of sale" transaction).
Compare this to other prepaid cards that have high fees and up to $ 10 / month fee just to have their card! Serve no hidden costs and is very in advance on the minimum charge that they are free. Other features include American Express Purchase Protection and a mobile application to manage your funds, deposit checks and pay bills. All these advantages make our # 1 rated Serve prepaid card and a wise choice for someone who does not want to be ripped off by hidden charges.
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