The prepaid debit cards industry has become quite large over the past 5-10 years and is the option many people are turning to when they can’t open a bank account due to overdraft fees. The sad truth is, prepaid debit cards are loaded up with fees that end up allowing you to only use a fraction of the money you put onto your card. Many cards charge you fees for checking your card balance, using the ATM to withdraw cash, talking to a customer service agent and believe it or not many even charge fees for using your prepaid debit cards!
Consumers Union published an article going over a study conducted on prepaid debit cards and the fees associated with them. I would encourage you to read this article if you are thinking about going the route of prepaid debit cards. A great alternative to prepaid debit cards is going with a bank account that doesn’t charge overdraft fees.
