What’s with all the fuss? There’s growing debate about prepaid debit cards, and with like anything else new, there’s probably at least some good reason for it. Traditional prepaid card providers charge customers fees in a way that isn’t uniform or easy to price compare. So for the average consumer, it is very difficult to answer the most important question when making any financial choice, “Is this right for me?” Newcomers like the KAIKU® Visa® Prepaid Card are trying to make it easier on consumers to answer that question.
The good news – is that there ARE prepaid cards out there that dodge a lot of the negative attention churning through the media and the market itself. Cards like the KAIKU Visa Prepaid Card offer great features while having some of the lowest fees out there. Fees account for a lot of the negative prepaid card buzz, but unlike other competitor websites where it’s often hard to find what you are looking for, the KAIKU Website not only has a wealth of helpful information, but there is a genius comparison page that lets you see exactly how unreasonable some of the other competitor fees are – https://www.kaiku.com/card/compare_us.
Here’s a combination of tips and guidelines to help you navigate the grey areas of the prepaid debit card world:
Understand the motivation – with “mainstream” financial institutions (FIs) beginning to offer their own prepaid cards, it is important to understand WHY they are doing it. The recently passed Durbin Amendment and the downturn in the economy left a gaping hole in the revenue model of major banks. The growth of prepaid, and the fact that prepaid cards are exempt from the interchange revenue caps under Durbin, have sent major FIs like Chase, U.S. Bank, and others scrambling to offer a “checkless” checking account under the name prepaid to recoup this lost revenue by avoiding the rules and regulations of checking account-linked debit cards.