Prepaid travel cards may be used as either credit or debit cards without credit checks, application fees or obligation for continued use. Costs vary by card-issuing company and whether the card holder pays per transaction or by month.
Typical costs:
Designed for occasional use, pay-as-you-go travel card plans do not have monthly charges; however, a convenience fee of about $1-$2 per transaction is typically deducted. For example, Account Now[1] offers a Visa card "Classic" plan with a one-time service charge of $4.95, no monthly fee, and a charge of $1 per transaction, capped at $10 per month, while the American Express Prepaid card[2] offers one free ATM withdrawal per month, followed by a $2 per transaction fee for each additional use.
Cards for regular use have recurring fees that cost about $0.99-$10 per month, depending on company and amount loaded each month. Typically, there is no convenience fee when using the card as a credit card. However, when used as a debit card, with a personal identification number, a $1-$2 transaction fee is added. These fees may be waived when minimum loading or reloading of about $1,000-$1,500 occurs during a calendar month. For example, Walmart[3] offers a money card with a $3 monthly fee that is waived when at least $1,000 is loaded or reloaded onto the card during the calendar month. This plan also charges $3 to reload at a Walmart store and $2 per ATM withdrawal, while Ready Debit Prepaid Cards[4] costs $9.95 to activate, followed by a $3.95 per month fee--waived when more than $1,500 per month is loaded--and charges a $2.25 per ATM withdrawal with a $0.95 charge per purchase. The maximum amount to be loaded onto a card at any one time is typically $7,500-$10,000.
Access to available cash through ATMs and shopping locations without a background check or minimum balance requirement is typically included.
Additional costs:
The original card issuance fee is about $3-$15, depending on company and card design chosen.
Additional usage fees include an ATM balance inquiry fee of $0.50-$1 when using a domestic ATM or $1-$2 when using ATMs abroad to check a balance. International ATM withdrawal fees cost about $2-$5.00 per transaction, depending on location and issuer.
For international travelers, currency conversion charges cost about 2%-2.95% of the transaction amount, depending on company and location.
Paper statements cost about $1-$2 per month. A maintenance fee up to $2 is typically charged if the card becomes inactive (no loads or transactions occur within 90 days).
Discounts:
Check with issuing company for offers including free direct deposit, online bill pay options and point reward systems.
Some companies offer rewards for signing up for their prepaid cards including, for example, complimentary $25 gift cards for loading more than $200 at one time.
Shopping for a prepaid travel card:
Credit card.org maintains a list of recommended prepaid credit cards[5] .
Mastercard offers an online guide to prepaid cards.
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