Reloadable Prepaid Debit Cards

[+ not2rowdy]

General question - not really related to “hobby” activities.

 

I use credit cards and typically pay off the balance in full each month. But I don’t like to charge purchases under about $20. So I usually carry some cash to cover small purchases. I’ve been resistant to debit cards.

 

But I’m now considering a prepaid, reloadable debit card. One I’d use for basic small expenses that I’ve been carrying cash for. I would prefer something that is easily reloadable and not directly linked to a bank account like most debit cards.

 

The American Express Serve seems to be the least costly but has limited acceptance. The PayPal Prepaid was suggested but it appears to have fairly high average monthly fees. So currently I’m considering a Chase Liquid.

 

One (of several) sites I’ve looked at:

http://www.bestprepaiddebitcards.com/best-prepaid-debit-cards/

 

Any other suggestions or considerations?

[bigvalboy]

I use NetSpend Master Card for online purchases, online reservations, online bill pay... etc. It works for me. I do not use it as a form of daily purchases. For that I pay cash. NetSpend has a $1.00 fee per transaction, but no monthly fee, is not connected to any bank account, has better customer service than my regular bank credit cards, and will notify you via a text within seconds, every time a transaction occurs. I have over the years disputed a few charges, a couple of them got a little contentious, but NetSpend stood behind me 100%.

 

I'm in Florida, and there are numerous convenient places to load your card. Loading it is easy depending on the vendor you use. As an example, Publix grocery stores use Western Union Speed Pay to load money, which means you have to fill out a short form to load money, whereas at WinnDixie grocery stores you just scan your card and your done. (Your mileage may vary)

 

I have also found that not everyone takes Visa, hence the Master Card.

 

Good luck...

[Hungmixedboi88]

I'd agree with bigval, I've used Netspend for a while now very easy to set up and reload and such

[OneFinger]

I have AMEX which is tied to my airline account. I use that for EVERYTHING including small purchases. I pay off the balance every month so I don't incur any interest charges. One of the best financial decisions I've made. I'm buying airline tickets to a wedding for 5 family members using those earned miles.

 

I'm not a fan of prepaid debit cards.

[mike carey]

I haven't read of any US airlines that do it, but if you have a frequent flyer account, check with them to see if they run a reloadable debit card. Both major airlines in Australia have such cards. They are free, easy to reload on-line from any bank account and offer air miles for purchases. One of them e-mails you details of every transaction as it is made.

[abc645351]

Just out of curiosity, why do you want to use a prepaid debit card rather than just a credit card for the small purchases? Either way you'll be paying it back the same time. But with a prepaid card you'll have to pay some extra fees most likely. I believe Serve is $1/month, NetSpend is apparently $1/transaction. If you consider these fees in terms of percentages of your small purchases, it really adds up. If you just want to do it this way to keep your small purchases separate, a better option may be to just open up a second credit card and use that for any small purchases, and set up autopay with your bank account to have the balance paid in full every month. Thaty way you will not incur any interest charges nor will you have to pay any unnecessary fees that usually come with a prepaid debit card

[rvwnsd]

A couple of years ago I opened an American Express Serve account to send money to a relative who needed financial assistance. It was easier than sending a check for both of us - she couldn't always wait for a check to clear and I didn't have to write a check. We chose Serve because it was easy and free to set up a subaccount for her and there is no monthly fee as long as you make one direct deposit per month, which I set up with my bank. Reloading online is also free, but you are limited to $200 per day and you can only link one debit card to the account. However, you can change the debit card at will.

[abc645351]

A couple of years ago I opened an American Express Serve account to send money to a relative who needed financial assistance. It was easier than sending a check for both of us - she couldn't always wait for a check to clear and I didn't have to write a check. We chose Serve because it was easy and free to set up a subaccount for her and there is no monthly fee as long as you make one direct deposit per month, which I set up with my bank. Reloading online is also free, but you are limited to $200 per day and you can only link one debit card to the account. However, you can change the debit card at will.

For that it makes sense but OP will be using it instead of cash/credit card, so it wouldn't make it easier for him in any way. Serve used to be free, but there is now a monthly fee of $1/month unless you have direct deposit of $500+ which I doubt OP would want to do. While $1/month doesn't seem like a lot, if you consider it as a percentage of those small transactions in a month, it can be somewhat significant. Maybe I'm missing something but I just don't see why you would use that if you have other options like a second credit card which would do the same thing just as easily but for no extra cost

[+ not2rowdy]

...a better option may be to just open up a second credit card and use that for any small purchases, and set up autopay with your bank account to have the balance paid in full every month....

 

I have several credit cards so this actually makes quite a bit a sense. They are currently kind of a mess IRT which ones are doing autopay on different recurring monthly bills.

 

So I think I will resort “the mess” and then designate one as my “minor expenses” card.

 

A related thought is to get a “normal” (non-reloadable) prepaid debit card at WalMart with maybe $50 on it and hide it in my car for emergency use if I was to lose my wallet. At least enough for a gas fillup. And not linked to any bank account.

 

Thanks everyone for your input. I'll do some more thinking through the weekend.

[+ sam.fitzpatrick]

I have three credit card accounts. One I use exclusively for on line purchases and one for daily use, including my morning cup of coffee I pick up at the drive through window at Tim Horton's. The third I carry in case I'm traveling and have fraud on one of the other cards.

 

The only place I use my debit card is at my bank's ATMs.

[rvwnsd]

For that it makes sense but OP will be using it instead of cash/credit card, so it wouldn't make it easier for him in any way. Serve used to be free, but there is now a monthly fee of $1/month unless you have direct deposit of $500+ which I doubt OP would want to do. While $1/month doesn't seem like a lot, if you consider it as a percentage of those small transactions in a month, it can be somewhat significant. Maybe I'm missing something but I just don't see why you would use that if you have other options like a second credit card which would do the same thing just as easily but for no extra cost

I have $20 added via direct deposit every month and the fee is waived.

 

If the OP has a credit card I agree getting a prepaid card for small purchases does not make sense, as he would still use a card to pay for the transaction. Regarding the $1 monthly fee, many credit cards charge an annual fee and many banks charge monthly account service fees.

[abc645351]

So I think I will resort “the mess” and then designate one as my “minor expenses” card.

A related thought is to get a “normal” (non-reloadable) prepaid debit card at WalMart with maybe $50 on it and hide it in my car for emergency use if I was to lose my wallet

Sounds like a good plan for the minor expenses card. I probably wouldn't do the emergency debit card though. You'll have to pay a $3 to $5 fee to get it in the first place, and after a few years they expire. Well, they don't really expire but if you still have money on it after a couple years they'll start charging you a couple bucks a month or year or something until eventually there's nothing left. It would be better just to keep some cash in the car since that never expires and you'll never have to think about it. Another option is to just keep one of your credit cards in your car or home (and not in your wallet) so if you're ever separated from your wallet, you'll still have that card and the number won't be compromised in any way. Most banks are pretty good about sending you a new card with overnight shipping in those circumstances though, but it's an option if you're still worried about getting separated from your wallet and needing access to a small amount of emergency funds/cash