Prepaid Cards | Federal Trade Commission


David didn’t like carrying cash
around after pay day. He wanted a different way
to pay for things. But he didn’t want a bank
account or credit card, so David decided that a
prepaid debit card would solve the problem. He could load money on
the card and use the card to buy things. David found a bunch of prepaid
cards at the store. He chose the card recommended
by his favorite singer. He loaded $200 on the card
and went shopping. But when David checked his
balance a few weeks later, he got a surprise. He didn’t know he paid $10 to
activate the card, $12 a month to maintain it, $3 every time
he bought something, $6 to check his balance, $3 to get
cash from an ATM, $4 to get his statement in the mail, $2 to
talk to a customer service agent, and $3 to reload
the card. David loaded $200 on the card,
but got to spend only $157. So David did some research and
found a prepaid card with lower fees. He got rid of the first card and
switched to the new one. He’s much happier now.




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