I’m Linda Sherry with consumer action. Today we’ll discuss what you should keep in mind when you’re purchasing and using a reloadable prepaid card. Not all prepaid cards are alike or have the same features. Most prepaid cards offer the same conveniences as credit or debit cards such as signature, pin number transactions, online purchases and bill payment.
If you use a check casher to cash your paychecks, look for a card that will cash the check and load it on your card for a reduced fee. If you tend to buy money orders to pay bills, consider a card that allows you to make bill payments, you can buy a card at a retailer, load it with money and use it until it’s gone. You can purchase a card called personalized card, which allows you to deposit or load funds when you need to. For a personalized card, you’ll have to provide some information about yourself and wait until that information is verified before you can load funds.
Prepaid cards don’t have legal protections for error resolution and fraud liability, but most prepaid issuers have voluntary policies to resolve errors and to address fraud. Make sure you get a card that offers voluntary zero liability against unauthorized charges. You have to know that voluntary policies may not apply in every case.
For example, your PIN transactions probably aren’t subject to zero liability. Prepaid cards are not subject to federal billing error laws. You must follow the procedures outlined in your prepaid card terms, read the issuers policies carefully and make sure you’re comfortable before you purchase a card.
Look for a card that offers FDIC insurance to guarantee your prepaid balance. If your card company goes out of business, set up text or email alerts to warn you when your balance is getting low. Go online or call often to check your account transaction history and immediately report unauthorized usage or questionable transactions. If you wait too long, you may could lose money.
So choose the right card, know the caveats and keep control of your finances. For thousands of videos, visit www.monkey-see.com.