Pre-paid debit card rip-offs

While the concept of the pre-paid debit card may seem like a great idea in theory, many consumers anymore are finding that they are losing a substantial sum of in the form of hidden or poorly explained fee agreements. Companies that provide said service include MiCash Prepaid MasterCard, Millennium Advantage Prepaid MasterCard, Silver Prepaid MasterCard, Only 1 Visa prepaid card, Wal-Mart Money Card, and Vision Premier Prepaid Visa Card among others. The standard fees for card use usually include high activation fees, which is instantly deducted from the initial deposit amount upon activation, along with a monthly payment for use. These truly wear down the primary market for the card, which are low-income earners or immigrants, both have the common bond of having difficulty obtaining a credit card, this ends up being a logical, and a lot of time, the only alternative.

Amoung of the providers for the service, the Green Dot Visa is one of the largest. While the G.D. Visa has recieved complaints in the past of activation fees and issues arising from them and are working into having them decline, the over-all cost of maintaining it with hidden fees cost more than doing business with most banks. The fees include:

• Initial Purchase: Varies by retailer, from $4.95 to $6.95
• Monthly Charge: Waived in any monthly billing cycle when you load at least $1,000 to your card or make 30 purchase transactions, otherwise, $5.95.
• ATM Withdrawal: free at participating ATM's, otherwise $2.50 per withdrawal.
• Teller Cash Advance: $2.50
• ATM Declined Withdrawal: $0.50
• ATM Balance Inquiry: $0.50
• Lost/Stolen Card Replacement: $6.00
  
  Along with these, there have many numerous reports of serious lag of service involving access to deposited funds and unbelievably bad costumer service. Some relief may be in sight from serious credit card legislation enacted in late 2008. The legislation is causing federal regulators to come down on credit companies as far as their practices, asking them to have fairer revisions of fees and agreements by Febuary of 2010. Until then, however, Congress asks any consumer that can't wait that long to feel free to seek legal action against their respective company.
  
  SOURCE: http://www.nytimes.com/2009/10/06/your-money/06prepay.html?_r=2&hp