Explain reloadable debt cards to me...

[sisterfunkhaus]

I've seen several people here saying you can get reloadable debit cards and pay bills online. I was wondering how that works. The ones I have seen don't have a name or expiration on them. Don't you have to have a name on the card as well as an expiration to use them as a credit card on line?

Also, my husband can get paid via one of these cards. Can I purchase money orders at, say, Wal-mart using this card or do I have to pay cash for money orders? Also, is there a limit as to how much cash I can get a day from a reloadable debit? Say I want to pay my house payment and need a money order. If they only allow $400 a day, would I just have to keep going back every day until I had enough to pay my house payment?

[susie]

I sent you a PM.

[sisterfunkhaus]

Thanks. The FAQ had some interesting info but didn't get as specific as the questions I have. I was hoping someone could share thier personal experiences with using one of these. I also had one more question:

Can these be seized if you are sued? If they are issued through a bank and the bank has your name, social security number, etc... can't they be tracked and levied just like a bank account?

[susie]

Sorry, I have no idea about whether a creditor could seize this like a bank account. It seems possible, but I have no experience with it.

I do use one of these, but I just put money on it as needed to get whatever I need to pay for online, so my experience with it is not real detailed.

[GoingUnderInNV]

I do use one of these, but I just put money on it as needed to get whatever I need to pay for online, so my experience with it is not real detailed.

Susie, which card do you have? What fees do you pay (start-up, monthly maintenance, per-transaction charge, etc)? Thanks!

[susie]

I hope it's okay to say which one I use here. I am not trying to solicit business or anything. I use the Western Union Prepaid Mastercard. Here is the link that explains fees, etc. I have never left money on it all the time, but just put some on occasionally as needed when I have to make an online purchase. That way I don't pay a fee every month. If you go with this one, make sure you get your statements online or there is an extra fee. I get a free daily email telling me my balance, and that is really convenient.

http://www.westernunion.com/info/osPrepaidMC.asp

[GoingUnderInNV]

Susie, thanks for replying! The WU card looks fairly standard, but I don't see a setup fee on there, so that's definately a bonus! I'm just keeping my eyes open for good debit card deals in case BofA does a number on me and refuses to let me keep my checking debit card after I file.

Thanks again! And if anyone else has any links to good deals on debit cards, please post 'em! I tend to pay just about everything online, so debit cards are a boon as far as I'm concerned (as long as there's no per-transaction fee).

[susie]

I do remember there was a 9.95 setup fee the first time I used the card. Either that is buried in the fine print or they don't charge it anymore. You might read the fine print carefully to make sure.

[SinkingFast]

I've researched these a bit as I think it would be nice to have one when you don't want to be giving out personal banking info to just any yahoo out there.

I found one company, can't remember the name, that actually sells theirs at local drug stores and supermarkets. I remember Walgreens was one Vendor. Maybe look around in some local shops and see if some of your area stores carry them. You might be able to read up there about a different company's policies as well.

I believe I Googled "Prepaid Debit Card" on the internet for some of the ones I found.

[brokentampa]

Stored Value Cards

I've been using a Netspend Visa stored value (debit) card that has worked very well for me. From my research, stored value cards are not reported to credit reporting agencies as they are not credit cards. Of course any funds you apply to the card is considered a cash asset.

I've used my card online, at hotels, restaurants, and department stores. Never had a problem, although some hotels reserve 10 to 20 percent extra for incidentals. I think this is true with any debit card. On two occassions the hotel didn't release the extra amount after I checked out. I faxed the paid receipt to Netspend and they restored the value within 24 hours.

I paid 9.95 to setup my card. I reload locally at a check cashing store. The charge is $1.50 for the reload and the funds are available immediately. You can also reload online from your checking account, but doing so takes away the privacy benefit of the card because it ties the card to your checking account and the transaction will appear on your bank statements. Netspend charges $1.00 for each time the card is used for a purchase. I've never taken a cash withdrawal at an ATM. I think the service charge is more. Read the fine print on that.

My card looks like any Visa debit card. I also have cards for my wife and son on the same account. The account comes with online access to all account activity which is top notch. I even get a mobile phone text message that updates me of my balance each time I use the card or recharge it.

If you have a bank debit card associated with you checking account, there is really no need for stored value card. They serve the same purpose. I got my Netspend Visa card for privacy and as a way to easily keep track of my travel expenses that are business related.

This information is based on my experience only. You should check out the features and benefits yourself to determine if a Netspend card is good for you.