Prepaid Credit Card Fees
Prepaid credit cards are great but before you buy, you need to make sure that you understand what the fees are. Some companies will charge a transaction cost each time you use the card, others a higher activation fee. If you need a credit card but can’t qualify for a traditional one through a bank, these are great alternatives but it pays to compare. Fees change regularly and it is best to check the terms and conditions.
These prepaid cards work just like traditional credit cards and are accepted at merchants and on line anywhere Visa and MasterCard are accepted. Transaction fees can be set based on the purchase price of the item or a flat fee of $1.00 or more.
When the account is first opened, it must be activated. This activation fee might be waived or you can be charged as much as $19.95. Don’t forget about possible monthly or annual fees too that can run $4.95 a month or $19.99 annually.
These cards also make it possible to add value by returning to the merchant or through an automated system where funds are added via a credit card. While some of the cards offer is reload at no charge, others will tack on a fee of $9.95 or more.
If you are looking for a credit card for teens, you might want to look for cards target to this market. Normally the fees are a bit lighter with some reload fees waived. But there will still be enrollment or activation fees, inactivity fees and annual charges.