Prepaid debit cards becoming more popular among consumers
Aug 02, 2013 Sean Albert
As consumers begin to shift away from credit cards, prepaid debt cards are increasing in popularity.
These cards can be good for people who have poor consumer credit scores. Additionally, prepaid cards can help consumers improve their spending habits.
"The prepaid debit card really puts some boundaries around their spending, so they can spend what they have and not have to worry about either overdraft charges on a checking account or racking up significant debt as they would on a credit card," Greg McBride of Bankrate.com told NBC News.
However, prepaid cards aren't always beneficial for consumers, as they can come with high fees. According to the Consumerist, many employers have been providing employees the option of receiving their salaries on these cards, but the fees chip away at their income in some cases. of course, they also offer numerous benefits.
Odysseas Papadimitriou of CardHub.com told NBC News the most any consumer should pay to use a prepaid card is $3 per month, and there are certain options out there for less than that. In fact, research conducted by CardHub.com found there are cards that come with no monthly fees, access to ATMs and online bill pay.