Recent Prepaid and Cash Cards

[treehugger1]

During the past 12 - 18 months more and more large financial institutions have made debit cards available. For folks who are worried about bank accounts, have chexsystem issues, etc., there are now very good options for non-deposit type of accounts. I noticed that Chase now has Lliquid," American Express has "Serve," US Bank has a prepaid account, etc. Almost all of these do not perform credit or chexsystem checks and they are considerably cheaper than the independent prepaid cards that came out several years ago. Many of us stated a few years ago that prepaid debit cards would eventually bleed over to the bigger financial institutions. Many of these accounts specifically state that these are non-deposit accounts (such as traditional checking and/or savings.)

It appears that the "card" is just a transfer vehicle for money that is deposited in some mystical pooled account. With the big institutions now involved, one can mystically have 10's of thousands of available dollars lying around at their disposal without having the money in a "deposit account."

I wonder how long it will be before the financial institutions have to report these VISA/MC account numbers and non-deposit dollars to other federal and state tax entities. Currently, there does not appear to be much regulation related to these prepaid debit cards. Yet, it appears that the money is FDIC insured. I wonder how they work this, if you do not have a deposit account specifically tied to your name. Does the "pooled" account have FDIC insurance?

My daughter, nieces, and nephews, all in their 20's and 30's, don't even know if they have a bank account. They don't even go into a bank. They could not tell you their account numbers if you asked. It seems the only time they ever need their account number is to set up a direct deposit. Everything else they now do through mobile apps, atm machines, etc. It makes sense that the traditional concept of bank account will become less and less important as the big financial institutions continue to nudge us away from brick-and-mortar banking.

I have to admit that even I now get frustrated when I have to wait for some person in front of me to write a check for groceries or prescriptions. Jeez. LOL

[LadyInTheRed]

I have to admit that even I now get frustrated when I have to wait for some person in front of me to write a check for groceries or prescriptions. Jeez. LOL

What I hate is having to wait at a gas station while the person in front of me goes inside to pay cash then has to go back in for change after they pump their gas. Sometimes we just have to remind ourselves to slow down and relax. Just because technology allows everything to go faster, doesn't mean everything has to be fast.

[LadyInTheRed]

LOL. treehugger1, I just noticed you are in Oregon where you aren't allowed to pump your own gas. I remember the first time I went to a gas station in Oregon. A guy came running out yelling "Hey, you can't do that!". Can't do what? I'm just getting gas. That was exactly what I couldn't do. It takes some getting used to. But, it's kind of nice. And it probably makes the whole process quicker at a busy station.

[treehugger1]

When I moved here, it took me years to stop "breaking the law." Currently, if I feel the need to pump my own gas, I can drive 15 miles to the Native American owned truckstop and pump away. Sovereignty has some perks.

[pamkev]

It's the same in NJ when we get gas in that state gotta remind self stay in car

[keepsmiling]

"Jersey Girls Don't Pump Gas"
We even have t-shirts to prove it lol

[jacko]

I technically still have a checking account. My former state taxing authority levied it and is frozen in time until the unpaid taxes are paid. Now my payroll is direct deposited into two debit visa/mastercard accounts. Each month, I wonder over to Wally World to get a money order check for rent. Unlike a checking account check, its paid for and do not have to worry about a bounced check from unexpected levies and banking shenanigans. My auto insurance is ACHed monthly along with others.

I wonder if my state creditor will get a clue, that I no longer have a active checking account and is collection proof.

During the past 12 - 18 months more and more large financial institutions have made debit cards available. For folks who are worried about bank accounts, have chexsystem issues, etc., there are now very good options for non-deposit type of accounts. I noticed that Chase now has Lliquid," American Express has "Serve," US Bank has a prepaid account, etc. Almost all of these do not perform credit or chexsystem checks and they are considerably cheaper than the independent prepaid cards that came out several years ago. Many of us stated a few years ago that prepaid debit cards would eventually bleed over to the bigger financial institutions. Many of these accounts specifically state that these are non-deposit accounts (such as traditional checking and/or savings.)

It appears that the "card" is just a transfer vehicle for money that is deposited in some mystical pooled account. With the big institutions now involved, one can mystically have 10's of thousands of available dollars lying around at their disposal without having the money in a "deposit account."

I wonder how long it will be before the financial institutions have to report these VISA/MC account numbers and non-deposit dollars to other federal and state tax entities. Currently, there does not appear to be much regulation related to these prepaid debit cards. Yet, it appears that the money is FDIC insured. I wonder how they work this, if you do not have a deposit account specifically tied to your name. Does the "pooled" account have FDIC insurance?

My daughter, nieces, and nephews, all in their 20's and 30's, don't even know if they have a bank account. They don't even go into a bank. They could not tell you their account numbers if you asked. It seems the only time they ever need their account number is to set up a direct deposit. Everything else they now do through mobile apps, atm machines, etc. It makes sense that the traditional concept of bank account will become less and less important as the big financial institutions continue to nudge us away from brick-and-mortar banking.

I have to admit that even I now get frustrated when I have to wait for some person in front of me to write a check for groceries or prescriptions. Jeez. LOL

[OHBOY]

When you set up (buy) one of these prepaid cards is it requirement to furnish ones Social Security number ? Also, I am wondering if there is a charge when using one of these cards as a debit card. Lastly, has anybody used them to rent a car with ? Any problems with that ?

[AngelinaCat]

^^^^I actually am having a similar issue with PayPal.^^^^

I opened an account several months ago, and everything was fine. Now, my account is limited--can't put money into it--without having to provide a (1) Picture ID that is current (2) Full SS number--THAT is the Red Flag for me, or (3) a bill such as my utility bill with my name one it. We get our mail at a postal box, so the only thing with a street address on it is my HSA account statement. If the bad guys are in charge, they aren't getting a copy of that!

[OHBOY]

Since Paypal came up with that new requirement I looked into it. What it boils down to is this: you can use your account as always. If you end up buying something on Ebay you can link a card to that account for payment OR you can use your Paypal account (I think it's through GE ?) to pay for an item at the end of the cycle or by making min. payments (ha, we all know where THAT gets us). Of course, if one has a checking account one can link that to your Paypal account. OR, if you have a positive balance from selling something you can pay for purchases that way.
But, the important thing is that the statement 'can't put money into it' ONLY PERTAINS TO INSTANCES WHERE YOU OR SOMEBODY ELSE PUTS SOME MONEY INTO YOUR PAYPAL ACCOUNT.....THAT'S WHEN YOU NOW NEED TO FURNISH ALL OF THE ID'S. I don't know exactly why this new mandate was put into place.....to reduce money laundering ?

Anyhow, after contacted them I decided not to furnish the requested ID's and I am just BUYING and SELLING on Ebay just as before and everything is just fine.

[AngelinaCat]

Right now, my PayPal balance is 'zero'. My bank account is attached to the PayPal account, but I have been afraid of trying to pay for anything I buy on eBay, with PayPal, where they would have to draw on my account, because of these limitations. So far, I have only purchase three small (low cost) items, and have emailed the seller ahead of time to find out of I could send a postal money order. So far, that has been fine.

[OHBOY]

Right now, my PayPal balance is 'zero'. My bank account is attached to the PayPal account, but I have been afraid of trying to pay for anything I buy on eBay, with PayPal, where they would have to draw on my account, because of these limitations. So far, I have only purchase three small (low cost) items, and have emailed the seller ahead of time to find out of I could send a postal money order. So far, that has been fine.

I just paid my outstanding Ebay bill. Didn't have enough in my Paypal account to take of it, but since my bank account is also linked to the Paypal account they just took the difference out of there (the withdrawn funds from the bank account show up on Paypal summary as 'added funds').
You can, without worry, buy your 'stuff' on Ebay without contacting the sellers about sending money orders. It will continue to be processed through Paypal, just as prior to the confusing new ID 'requirement' which really does not apply to people like you and I. Perhaps if you call them, they can explain it better to you than I can. Just thought I let you know that all of their new 'requirements' boil down to a bunch of non applicable 'hogwash'.
Now you just can't do anymore what my wife did (yah, one can take lessons from her...lol), namely: get a new credit card that did not have any cash advance on it, just a 'nice' sized overall amount. Max the 'thingy' out by sending money to my Paypal account (shows up as a 'purchase' on the cc ) by sending (i.e.) $ 2000 to my Paypal account. Right after it 'arrives' (instantly), withdraw the money into her bank account, and voila ....that's how she bypassed when a cc sent her a 'no cash advance' new card. Oh, I forgot...thereafter go to the casino......

[OHBOY]

During the past 12 - 18 months more and more large financial institutions have made debit cards available. For folks who are worried about bank accounts, have chexsystem issues, etc., there are now very good options for non-deposit type of accounts. I noticed that Chase now has Lliquid," American Express has "Serve," US Bank has a prepaid account, etc. Almost all of these do not perform credit or chexsystem checks and they are considerably cheaper than the independent prepaid cards that came out several years ago. Many of us stated a few years ago that prepaid debit cards would eventually bleed over to the bigger financial institutions. Many of these accounts specifically state that these are non-deposit accounts (such as traditional checking and/or savings.)

It appears that the "card" is just a transfer vehicle for money that is deposited in some mystical pooled account. With the big institutions now involved, one can mystically have 10's of thousands of available dollars lying around at their disposal without having the money in a "deposit account."

I wonder how long it will be before the financial institutions have to report these VISA/MC account numbers and non-deposit dollars to other federal and state tax entities. Currently, there does not appear to be much regulation related to these prepaid debit cards. Yet, it appears that the money is FDIC insured. I wonder how they work this, if you do not have a deposit account specifically tied to your name. Does the "pooled" account have FDIC insurance?

My daughter, nieces, and nephews, all in their 20's and 30's, don't even know if they have a bank account. They don't even go into a bank. They could not tell you their account numbers if you asked. It seems the only time they ever need their account number is to set up a direct deposit. Everything else they now do through mobile apps, atm machines, etc. It makes sense that the traditional concept of bank account will become less and less important as the big financial institutions continue to nudge us away from brick-and-mortar banking.

I have to admit that even I now get frustrated when I have to wait for some person in front of me to write a check for groceries or prescriptions. Jeez. LOL

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Have been wondering how it works out if one buys (for instance) and loads a Walmart Money Card, which is furnished through GE Capital Retail Bank, while GE Capital Retail Bank may be a judgement creditor. Same (for example) with a CHASE card, ect.
Would those creditors be able to link a prepaid card to an outstanding debt and garnish the amounts on any card (s) ?......Just curious........

[GoingDown]

What I hate is having to wait at a gas station while the person in front of me goes inside to pay cash then has to go back in for change after they pump their gas. Sometimes we just have to remind ourselves to slow down and relax. Just because technology allows everything to go faster, doesn't mean everything has to be fast.

Oh, that was you!

Ha, ha. Just kidding. But I have had the experience of people waiting impatiently while I pay for my gas with cash.

Although usually I just pay cash using a set amount according to my budget, like $30 rather than filling up the tank entirely, so I rarely have to go inside to get change.

[spearmint]

According to this link the reloadable prepaid cards are different animals from the nonreloadable cards and can indeed be garnished.

I need to pay for airline tickets and no way to do it. I don't have a bank account or debit card so thought one of these reloadable cards would be the answer but after reading this link I can't take the risk of putting money on it.

http://www.**********.com/blog/prepa...-be-garnished/