[Editor’s Note: In March 2013, after we published this article, American Express struck a deal with Wells Fargo allowing FDIC "pass-through" insurance to cover Bluebird prepaid cards. Customer funds are now protected up to $250,000.]
Here's something else that's got the potential to undermine our financial future…
It's about those prepaid cards, and the games that are being played with them that you may not know about.
Prepaid cards have lots of benefits, especially for the "unbanked."
These are the people who more or less may live paycheck to paycheck, or don't have jobs but need a "card" because both credit and debit cards are how we pay for most things these days.
A lot of people are rebelling, and rightfully so, against the higher and higher fees that banks are charging on checking accounts (and for all their other "services") and are turning to prepaid cards as an alternative means of paying for goods and services.
Now, American Express (NYSE: AXP) is partnering with Wal-Mart (NYSE: WMT) to offer Bluebird cards. The cards are being pushed through Wal-Mart stores and are ostensibly backed by American Express.
American Express? As if it's a bank. Wait a minute…
It is a bank.
That's because back on November 10, 2008, at the height of the credit crisis, American Express had to become a bank (actually a bank holding company) so it could take money from the Federal Reserve to stay alive.
You forgot that, didn't you?
And Wal-Mart, well, they have been trying to become a bank in several end-around ways.
Now, they've come together. The "bank" status of American Express and its 100-year history of issuing Travelers Checks (the first prepaid cards, really) and the marketing power and reach of Wal-Mart, into the pockets of the less than wealthy and notably underbanked, has yielded a Bluebird capable of flying in the face of safe banking.
There are lots of problems with the prepaid card game. My biggest problem is that there are plenty of fees attached to these types of cards. They're NOT free. A lot of the time folks aren't even aware of the fees they're paying.
They just know that bank fees are higher, or at least they think they are higher, which most of the time, they are.
What You Need to Know About Bluebird
Then along comes Bluebird with its no-fee prepaid cards. Sounds good, right? It is for now.
Join the conversation. Click here to jump to comments…
About the Author
Shah Gilani is the Event Trading Specialist for Money Map Press. In Zenith Trading Circle Shah reveals the worst companies in the markets - right from his coveted Bankruptcy Almanac - and how readers can trade them over and over again for huge gains.Shah is also the proud founding editor of The Money Zone, where after eight years of development and 11 years of backtesting he has found the edge over stocks, giving his members the opportunity to rake in potential double, triple, or even quadruple-digit profits weekly with just a few quick steps. He also writes our most talked-about publication, Wall Street Insights & Indictments, where he reveals how Wall Street's high-stakes game is really played.
I'd suggest that Wal-mart be required to insure the viability or "refund-ability" of the cards.
But wasn't it your own Martin Hutchinson who suggested only a few months ago that we should let banks go bankrupt without Depositor Insurance?
I recommend NO ONE purchase a Bluebird Debit (American Express) card from Walmart. Here is a list of merchants that WILL NOT ACCEPT this card:
DOLLAR GENERAL
J.C. PENNEY
CAPITAL ONE CREDIT CARD CO
TRANSFUND (KUM & GO) ATMS
SOUTHSIDE VETERINARY CLINIC
EAST CHINA BUFFET RESTAURANT
SOME WALMARTS (Oh yeah this one really floored me!!!!!!!!!!!)
Dont be a fool and get this card, You cant use your own money!!!!!!!!!!!!!!!!.
99 cent stores don't either
do these companies not take the card because it's bluebird, or because it's amex? if it's because it's amex… well, not everyone takes amex, and you'd have to figure out a way around that. just like not everyone takes discover. find a nearby ATM. *shrug*
if they don't take bluebird specifically… i'd complain. it's an amex card, and there's no reason for them NOT to take it
A dollar general took my bluebird card
Hey the card can be use at Dollar General, its basically their option to allow your or not. The cost for your using the bluebird card is passed on to the proprietor, 2 dollars per purchase that's a lot. Also guess what else, the proprietor agrees that you get the incentive deals on a number of other transaction with the reward points as well. So leave bluebird alone.
I love my Bluebird card. It is just like having any American Express card. Some companies don't accept American Express, but you can pull money out of the ATM at most ATM's. I have yet had any huge problems with my Bluebird card. I can add money to it any time which is a problem I had been having with my bank because I worked the branch hours and they blocked my deposit. I have not been blocked at Dollar General or at the Dollar Tree near my home, so it is based on area.
Dollar General Does where I live at.
I've had the BlueBird card for going on four (4) years now and it's the ONLY card that doesn't charge me ANY fees, responds to all disputes that I've needed to file regarding unhappy purchases, ATM fees at MoneyPass locations, or shady merchants, and offers the benefits that they do. I've been able to use this card not only as a direct deposit for my paycheck, IRS tax refunds, and wire transfers from various institutions, but I have NEVER been told that I'm not able to use it – UNLESS, of course, the retailer themselves do not accept American Express – which there are some who still don't take AMEX because of the higher fees that merchants are required to pay. But, I tell you, a lot of merchants are signing up with Amex and getting with the times. I, personally feel that this card is the best one I've ever had. It outweighs the Account Now, WU NetSpend, and most definitely ANYTHING from Green Dot Bank! American Express Blue Bird and American Express Serve are AWESOME!
That's the beauty of the account working as a bank account… Its a prepaid card that actually comes with checks! I run into this problem a lot but just use the checks at these businesses. The only real problem you face with this is when purchasing online & the retailer doesn't accept Amex, but I, surprisingly, haven't had too many issues with this & I shop online mainly.
Regarding transaction fees, I've been told that there are a number of these fees buried in Obama-care (oxymoron). i.e. Everytime you transfer money, use online bill pay, direct deposit, ATM, etc. Mr. Obama will get his piece of our money. Can you you confirm please?
I thought this nonesense would stop after the election, but ignorance never stops.
Obama is on a salary and will get no more or less of the taxpayers money, regardless of whether you get better medical care or not.
Yeah, I know you didn't mean that literally, but making it personal the makes losers feel better.
Grow up.
The only "losers" here are the American people. With this un-American, non-American, liar/fool/idiot back in the White House, we'll all be lucky if we don't end up a Socialist Dictatorship within the next four years. Obama-care is an oxymoron and a joke, just like he is, minus the oxy-. And, no, Obama doesn't collect a percentage on any of the fees, unless he has come up with some under-the-table, dishonest way to accomplish that… Hmmm, Obama telling lies and being dishonest, immoral, and otherwise a douchebag… what a novel thought. Anyway, back to the original point, pre-paid cards can be a useful tool in specific situations, but consumers need to be responsible and thoroughly evaluate the people offering them.
If Obama is an, "…un-American, non-American, liar/fool/idiot back in the White House…" then what was that maniac, killer of children, war/oil-monger, hypocrite, liar/fool/horse's petute that was in office before him?
As I recall, his name was Barack Obama…
Well not President Bush I'll tell you that much. When did he EVER lie?? How was he a killer of children? He was anti-aborsion btw. And oh yes, hypocrite. Because Obama totally lived up to everything HE said that he was against.
Are you fricken serious? WHAT DID BUSH LIE ABOUT? And as far as he goes with the death of children? Wow…you really have some homework to do. Go to youtube and check out
https://www.youtube.com/watch?v=UvM2cE7MaFk
Try this one for starters…you may think its bullcrap but sure as im telling you it's for real. They're all wrapped up in this video just for folks like you.
BRAVO ! WELL SAID
Why is that relevant?
What in the hell do Bluebird debit cards have to do with Obama-care?
that's a good question, would like to know that myself!
i agree with you Ron. What does bluebird have to do with obama-care? I thought discussion was about the future of bluebird/walmart card fees and our money going into it isnt insured if company decides to fold
probably about the fourth person saying I agree. OBAMA-CARE HAS NOTHING TO DO WITH BANKS WEEDING MONEY OUT OF EVERYBODY! Except of course that OBAMA IS WEEDING MONEY OUT OF THE BANKS! Lol
^^^ Was thinking the EXACT SAME THING?!… Like how the subject go from Bluebird Pre-paid debit cards to Obama-Care?!… I guess people still see themselves as "So Different" that they couldn't possibly be enslaved to this game Just as much if not MORE then we are… And Yet, All I came here for was to get the dirt on Bluebird Pre-paid Debit cards… cause I own one just haven't registered it as of yet… I don't like the fact that you have to attach your SSN & full name to a Pre-paid card that is supposed to keep you from having to share so much info and to cut down on unnecessary fees one occurs with a bank.
They want our Freedom… Period point Blank.
Hey NR,
You probably have no concept of how ignorant you sound. Who peed on your cocoa pops. You probably have no concept of what it is like outside of the United States because you have a severely limited view of what it means to be an American. Just because you have the 'right' to say something, doesn't mean that you should. Before you publicly call the leader of your nation a moron, perhaps you should reflect on where you stand on the moronic scale. Do you equal or exceed the President in formal education? Can you claim accomplishments of greater stature than President Obama? I sincerely doubt it… if you had, you would probably understand the concept and benefits of decorum, or at the very least tact. I am not advocating blind acceptance, just the wisdom to recognize the appropriate forum for political debate. Yet, as you opened this line of discussion, I will close my reply to you with the suggestion that you read sections 7 and 8 of the first article to Constitution before offering opinions on public policy and government spending.
Anyway, that nonsense aside, I have Bluebird and I have only good things to say about it. It is straightforward and user friendly. I did the research before purchasing and registering an account, but it is not as though I signed a contract or have somehow married myself to Bluebird… it is not a gym membership or cell phone plan, it is prepaid so I chose how much money is loaded on the card. I use it as a checking account, not a savings account. If they change the terms and start adding fees, I will simply not add any more money. No big deal, there will always be another option.
I find it preferable to banks and credit unions who charge you for a savings account and then fine you if you don't have money to save. Then, if you close the savings account, they charge you for having a checking account. If something happens and you are tight on funds, they will find a way to take your last dollar and then charge you for not having the minimum balance. It is amazing how quickly they can take a rough month and turn it into a full on financial crisis, and until you pay them, you can't get another bank account thanks to the little black book of bankers: the CHEX system.
I agree. I also have a Bluebird and absolutely love it. My son lives about 150 miles from me. I have a subaccount for him. All I have to do is add money to my card and transfer it to his card. It is great for those times when he needs money and i am so far away. Before I would have to wire it and that cost money each time you do it. I love this card and if they ever start adding fees on then I will just stop using the cards. I really don't see a down side to this type of card. It is not like I am going to put my life savings on a card of this nature.
I haven't heard anyone mention that Walmart has it's name on the Bluebird card, yet you cannot transfer any funds from any other Walmart card to the Bluebird card. I'm thinking of Suing Walmart for that very reason. Their name is on it, yet you can't run to a Walmart Store and get any cash from the Bluebird Card unless you either buy something from Walmart and then it's just $100 dollars or use a ATM! I had over $6,000 on my Bluebird card and couldn't get one dime from Walmart.
Where do you see Walmart's name on a Bluebird card? You whine that you can't get money off your Bluebird at the register without buying something… what is so difficult about getting money from the Walmart ATM (free of charge)? Good luck with that lawsuit, idiot.
I use the ATM by the money center in Walmart and can pull out $750 a day. You may be able to up that if necessary by calling American Express. I can not get cash back personally by purchasing a product, so I don't know about that method but just as an FYI Walmart does offer an ATM that you can use free of charge.
Good for you Fiona! Tell that old codger off! Haha. As I see it from your liberal scolding of NR that you too have lived abroad. My eyes were opened in more ways than one being an American living in China. I moved there a mere five weeks after the planes plowed into the Twin Towers and the Pentagon. Very strange times I can assure you.
After getting a good world education as to my ignorance from my new found Brit, Australian, German, French and other expat friends, I did a near 360 degree turn-around on my political views and my staunch "Americanism" ideals. Indeed! I doubt most Americans do fully appreciate or comprehend the meaning(s) incorporated into various parts of the Constitution, especially the articles you pointed out regarding Executive Office. (fortunately for me, there were not too many Americans in China to embarrass me further!).
I too use the Bluebird card as well as another "Greendot" Visa. Why? Because it unencumbered me from having the rule of law as dictated by many financial institutions (i.e. deciding without my consent to charge me overdraft fees even when I supposedly opted out or, never even given the opportunity to!).
Less gov't in my wallet more or less. The longer I was away from the USA, the more I realized how brainwashed the general American public was about contracts! Phones? Insurance? You name it, most Americans have no clue as to their rights and privileges regarding them. When I left in 2001, nearly 95% of Americans using mobile phones were tied to a contract. Abroad, nearly 95% of people from all nations used prepaid service. Why? Because, you pull a chip from your phone when you crossed borders, buy a new chip in new area, plug in, Viola! You're calling again. And banks (in China at least) were incredibly well run (most are open 7 days a week!).
So yes, more power to the prepaid services all around. I love, love, LOVE the idea of taking the power away from corporate America any chance I can.
Fionna, I must say I love your response and agree 100% I especially love your writing skills! Well done!
Fionna- you are awesome. I couldn't have said it better myself. And I too have a Bluebird card and love it. I read the above article to discover the dark side of Bluebird but the author does not in any sense prove his point. Does anyone know what is supposed to be so bad about the card? Terrible article, terrible writer. As a teacher, I give it a D-.
Obama wasnt the first one in the white house, why is every bad thing his fault! It was a mess before him and will be after him! Looser you say but obviously the other opponent wasnt winning enough to make it! Get over who's president and look at who is really taking from the american people. Oh and take a history class, the only real AMERICANS are Indians!
Hey Vannie the last time I checked I was born in this country just like the current indians…STUPID! God why don't you people stop being sheeple?
This great nation of ours at one time served as a beakon on a hill. We were founded on Christian ideals and we whooped the British during the revolution because of prayer and humbleness.
Fast forward to WWII and you see that we whooped those heathen Nazis, because we were on the side of rightiousness.
Everything was good in America as it had always been till the 1960s. Then nonchristians and minorities began pushing drugs and evil on our society. It has pretty much been downhill since.
The last GREAT president we had was Ronald Reagan. He was a man that understood right and wrong.
Too many Obamy lovers, nonchristians, kids with their pants hanging off their rear, and tree hugging hippie freaks have assaulted this country. It is very obvious that they are here to prepare for the end times and work for the devil.
Beakon? Do you mean Bacon? Maybe you meant bacon. No, wait… that would be cannibalism. (That is a big word that means a species which eats other members of its own species.)
You're an idiot.
NR, Did you learn all that from our biggest pig in American? Yes, I am referring to Mr. Defacto Whip of the New Republican Party, Rush Limbaugh. As for OXY, yes it does fit the bill.
Thank you for your interest.
you are eating your words now with that fool trump in office; HE IS EVERYTHING YOU THOUGHT OBAMA WOULD BE.
He may be on a salary but I know you and I pay for all the vacations and outings that they take!
Did you have a problem with the other presidents who were in office taking vacations?
Grow up, yeah that's a mature responce. Do you really think the president wants the job for the "salary"? Really?
Nope, he doesn't care about the salary or the benefits…it's the POWER! Remember, rape has nothing to do with sex; or money/benefits in his case, it has everything to do with POWER!
LMAO, now Obama is a rapist… you really cannot make this stuff up.
No, that was Clinton.
People who are ignorant will never be persuaded to be wise,because they are not open-minded enough to learn. Obama is trying to help the american people.He will go down as one of our best presidents one day. Those that don't like or can't except will just be who they are:what did you say earlier_morons? You are prob the one that needs help and can benefit,if not don't hate on someone who is trying to help those that need help. You r a creep who needs prayer
For the retired or disabled in America this is a sham. The Federal Government has notified us that we MUST have direct deposit for our checks by March. No more mail service. Many people do not have a checking account, especially the ones that are 'special needs'. This is almost predatory in nature for them. Banks are charging more in fees, or charging for low balances.
Here's a heads up for you. Social Security and Disability both off a card to you for the issue of direct deposit. Just go online or to your local Social Security Office to set that up. To many people have issues with our wonderful mail system now with checks being stolen, delivered to the wrong address, tardiness due to weather or holidays or just flat out laziness by the mail carrier who stock pile the mail in his trunk (yes, this has happened in my neck of the woods). It is really a much better system than old fashioned checks. Have a great day.
everything our gov't does is personal to each of us. not being offended by it is exactly why our population is full of retards!!!!!!!!!!!!!
okay it has been proven that obamacare has been receiving funds from hidden taxes/charges . No obama is not getting any money from theses funds but he is receiving kick backs. and he is bankrupting our economy through obamacare.
President Obama will personally get that money? That's crazy! Is that legal? Your post suggests that every time banks charge fees for their services, they share those profits with the president!
That sounds insane. Are you insane?
OMG! It's more clear than ever…
I good percentage of Americans are puppets of the media and worse yet ignorant…
I thought that after the election circus things will started to settle down but the moaning of getting a second chance still tormenting the stupidity of big chunk of this society which still blind and agrees to continue to be handle like cattle in this era of technology where information it's just about everywhere…
This stupid behavior of looking after our own individual problems and not the common well of everybody it's what's really taking down this nation and of course with not disrespect this type of attitude…
lol!
Dude, not literally. When they said "The president", they just meant the government, the white house, THE OVAL OFFICE. Lol chill
Not insane,just willfully ignorant and straight up stupid.
Someone is getting it, but I don't think it's President Obama. My check is direct deposit and I never get a fee for it. Each time I go to my bank's ATM I don't get a fee. The only fee I get is if I use someone else's ATM. If I pay by check, I have to purchase stamps. We have always paid fees, unless you go to straight cash and that's impossible.
Yeah, I also heard that Obama is responsible for the Kennedy assassination…! Lol
Yes it goes into Obama personal bank account
As dirty secrets go, this one is not particularly dirty. It's not a bank, so it isn't insured as a bank – I get that. What's more, if I'm living hand-to-mouth, the card is only a conduit between my paycheck and my grocery store, and the most that I ever have at risk – and only for a few hours every month – is the equivalent of one paycheck. Furthermore, I don't consider myself entitled to being bailed out if my bank or credit union goes under – the taxpayers who are robbed for that purpose probably are not responsible for the failure, so why should they pay for it? Life is risky, but this is one risk I might be willing to take, not just to avoid bank fees but to preserve my privacy.
I swear Wal-Mart preys on the naivety of people. You have got to be out of your ever-loving mind to walk down this Bluebird road. There are so many banks out there that offer Free accounts if you play by their rules (which isn't that hard). Everybody thinks that banks should handle their money, process checks, provide cash access (ATMs), honor a piece of paper (checks) and give cash without knowing if it is good, have staff to answer questions and insure your money for free. How do you think the staff is paid? Yes money is made on the spread (interest rate) when it is loaned out, but as the nation gets more and more fiscally irresponsible that spread gets smaller and smaller. Oh and also the amount of fraud increases every year a bank must absorb those. I think bank fees suck but I also haven't paid any for years. Know the rules and be responsible and you won't pay any. I wonder how quickly Patriot Act violations will come with Bluebird? I'm not down with this type of prepaid vehicle that will surely support money laundering. This has trouble written all over it!!
I got a Bluebird card, the reason I did was I did not want to put my debit card number on the internet when I saw something I wanted. I was told at Walmart that I could not use Bluebird but once when I tried to put more money on it( I keep very little in Bluebird) also I would have to go online to register to get a permanent card. I went online and they requested information that I was not willing to give. If I would not put my debit card number online why would I put my social security number online. I called Bluebird and they told me I had 2 options; to put my ss # online or not get Bluebird. The agent also told me that she could not register me: I had to do register it online. I will not put my debit card or ss# on internet so I refused the Bluebird card
Do you know that if obama declares a state of emergency he has a right to take control of all accounts held by banks? A legal way to take your hard earned money.
When will we come to the understanding that the quickest, cheapest, safest, and easiest way to pay for goods and services is with good old CASH .
I TRIED TO PAY MT AT&T BILL WITH CASH AND THEY REFUSED TO TAKE IT WITHOUT AN ADDED $5.00 CASH HANDLEING FEE! THIS HAPPENED AT THE AT&T STORE IN EASLEY SC ON CALHOUN MEM HWY (US RT. 123) AT THE BIG K SHOPPING CENTER. AT&T WILL NOT TAKE YOU MONEY UNLESS YOU ADD A "FEE TO PAY" OF ONE KIND OR ANOTHER. AND, I DON'T DARE START AN ONLINE ACCT. WITH THEM TO PAY YOUR BILL. BECAUSE, THEY WILL DOUBLE BILL YOU AND SAY YOU CAN ONLY GET YOUR MONEY BACK AS CREDIT TO YOUR NEXT BILL.
I pay my 'pay as you go' AT&T phone bill with cash at one of their kiosks. Sure the software needs upgrading but I CAN put in US (paper) currency and am credited the entire face value ($10, $20, etc) without any fee.
I rarely use my mobile phone so I wouldn't sign-up for any contract plan – the cheapest running $50/mth so I simply insert a $10 bill once a month ($0.10/min).
It's because they want to strongarm all their customers into using automated services for payment so that they can cut out customer service jobs, which in their typical white collar arrogance they regard as spending to be cut. As people use the method of payments that don't incur fees, the execs will claim "people don't want to pay in person anymore so we shouldn't staff for it." They'll then lay off all the people who weren't servicing customers not because people didn't want to come in person, but because they were smart enough not to pay more to do it. Companies want to automate everything for the sake of cutting costs but are destroying this country by doing away with every traditional means of earning a paycheck so you HAVE money to pit INTO the economy.
Metro PCS cell phone service in Florida dose that too, if u want to pay with cash u get charged a $5 fee. For cash! WHAT?!?!
I agree with you to a point, cold hard cash is a way to pay for things…but in the long run how good is your cash when you are paying $5 a gallon gas? what happens when it goes to $10 a gallon?
Let me ask you this, does the gas price or food price or "stuff" price fluctuate with the dollar or does the dollar fluctuate with the price of "stuff"?
Carl, you are correct sir! but at the same time i admit i have had a walmart visa moneycard since i think 2009. if you add/spend $1000 a month, no fees, always $3 to load any amount, i never had a monthly fee because i always have to load and then spend over $1000 a month paying bills but i think its $3. also all the time i get $0.10 to $0.15 off of every gallon of gas i buy.
i am like you, i get a paycheck, I CASH IT AT BANK ITS DRAWN OFF OF, get and keep my cash, but lets face it you need access to a credit card now a days for some stuff. i usually load about $300 a month (cost $3) just to use for gas ( at $3.25 a gallon, thats approx. 92 gallons) that saves me $10-$15 a month, its not a huge amount but its something.
i guess what i trying to say is people need to balance this stuff. if you use credit cards and you are not a company using it as a revolving credit line to buy inventory every month, you are an idiot! trust me i know, when times were good, i would run up $20,000 to even $60,000 in a couple of months on cards and pay the balance and do it all over again until 2008 when economy collapsed. i had some of those cards for 20 years, not a single late payment, FIRST LATE PAYMENT EVER, rates went from the super low set rates of 2%-7% that i spent years earning, went up to as much as 36%!
i believe in cash, carry cash, believe in cash, and most of all believe in a mans word and loyalty. LOL, when the credit card companies refused to help me after I did them right for so many years, i told them flat out, put my rates back to our agreed rate while i sort out my problems are you get not a single dime from me, $0, zip, notta! i guess they didnt believe me, but they learned, and ate about $80,000.00! dumb asses! i am not a dead beat, i told them i would continue paying, never said i would not, but i would not pay more than the rate in our contract! they broke contract, so F!^%#-'em!
but these prepaid cards can be helpful and actually if you pick the right one, use it the right way, you can save a few dollars to :)
ALL I CAN SAY IS… READ! READ! READ! READ! the fine print on these pre-paids, and good chance you can capitalize on a benefit from one of them that in your certain situation will actually allow you to get one over on these crooks! like me, i use alot of gas, always on the road, i get benefit of access to a visa if a need it and save a few dollars a months, like i said $9-$15 isnt a lot but ide rather be on the recieving end then other way around!
Using cards is a way to take advantage of good online deals when you don't live near major shopping areas. Not ALL of us live in a city or major suburb!
I agree with you on that.
I can tell that most comments here were written by people who have never endured hardship and have certainly never been poor. There are alot of factors that keep the poor from having an actual bank account, there are credit issues, problems with other bank accounts in the past like unpaid fees, there are minimum balances which are hard for a paycheck to paycheck situation, and a general distrust of banks. Walmart has earned the trust of the poor with their consistent low costs, and Amex is a brand name most poor associate with the rich. Having a prepaid card with alot of the bells and whistles of a checking account is a way to access some of the luxuries and conveniences the higher class takes for.granted, like online bill pay, direct deposit, and deposits with a smart phone.
Amen to that. I am one of those with"issues" in the past such as ex-husbands. I'm sorry if I did not spend the money I should not be held responsible regardless if we were still married or not. Gotta love a common law state like that. My current husband also owes back child support (he was out of work for 2 years looking for a job, but they don't care) so they can freeze my account and take the whole amount any time they get an itch. It's happened to me. What they fail to understand is I have bills too. This is the securist way I know of to manage my income and pay my bills without walking around with a bunch of money because that is oh so safe too. I also got one for my daughter who is a single mom. This card allows me to transfer money to her card without having to make a trip to moneygram, get charged an outrageous fee and it is instant. No more worries for me. I like this card risks and all.
This seems one of the best prepaid card out there. Period. Its not issued by bank, and hence is not FDIC insured but so are most of the prepaid cards.
Regarding interchange, arent all the cards living off that? How is Bluebird different than Chase liquid or any other bank's prepaid here? Interchange is not a Bluebird specific feature. Does that mean government should stop the whole business of prepaid cards?
This card has one of the lowest fee across the prepaid cards segment. Even Chase liquid, that advertises itself as no hidden cost, one of the lowest fee, etc has ~$4/month fee. For what? Just keeping a card in your wallet!? Bluebird definitely beats that. No monthly fee, no minimum balance requirement, etc
Finally, how many cards offer features such as bill pay, subaccounts, etc?
So to the critics out there, dont beat the drum just to make sound off it. Look at what are the alternatives in this segment and then analyse a new product.
Of course it is one of the best ! Two giants operating all over the world will know how to take advantage of their captive audience. To S. Gilani : Thanks for this very good article.
Chase liquid fees are about 1.55% at interchange, depending on the upcharge to the merchant could be another .10% to 1% tacked on by the processor.
Personally, your money is safer in a prepaid card. It's 100% backed by YOUR money..it's a law that all prepaid companies must abide by now.
1/9th of your money-my money is really in our respective bank/credit union account…something to think about!
The author should do some more fact checking before some of the blanket statements made …
Fees: If you go to a reputable prepaid company you will see the fees spelled out, simple and easy to understand. An award winning prepaid company that does this is MangoMoney.com
FDIC: There are some prepaid cards that offer FDIC protection – Mango is one of them. It is irresponsible to write that prepaid cards are not FDIC protected. It would be responsible to write that each prepaid vendor has the option to offer FDIC protection – good companies do and bad companies don't.
When you don't do your home work it is easy to bash prepaid cards. I hope the author of the article does some work and writes an honest and more articulate recap of prepaid cards – both good and bad.
Sadly, this day and age you need a credit/debit type card to get by. I have also run into places not accepting cash and if you need to rent a car or Hotel they won't rent to you without one…
for banking I went with a virtual bank and it is working out great and cheap…
Personally I think they are jsut trying to cash in on a trend…
Sir,
I read some where I believe it was in the contract about , them getting your power of attorny when you excepted the Bluebird Card. I'm sure it was in the Bluebird Contract .
Emanuel
This is a needlessly negative article with very poor arguments.
Disclosure: my company runs the UPside prepaid card program, so I am coming to the defense of a competitor here.
Yes, BlueBird is not free. There is NO free banking product anywhere. Supposedly free checking accounts charge up to $33 per overdraft occurrence.
By any measure, the BlueBird card is a very reasonably priced products.
Yes Amex is making money on the fees paid by accepting merchants. So do all Visa and MasterCard cards. These fees are not paid by cardholders.
The absence of FDIC insurance implies that you can't receive your tax refund or other government benefits on a BlueBird card; you would need to pick another card to do so.
It does not mean that the card is unsafe.
Money Morning News is doing a disservice to its readers by letting so poorly informed articles being published.
Yes. You can have your tax refund direct deposited to your bluebird amex card.
I have had a bluebird card for over a year and I love it. I also have the checkbook, etc. No min bal and no min deposit amount, and no hidden fees. I have NEVER PAID A FEE. I suggest the author of this article and anyone else giving facts about the card, should GET the card or research it before you give erroneous unsubstantiated statements. The card is wonderful! People are wising up and taking advantage of consumer products that will help with our bottom line. The big banks have been dirty for years and I refuse to have my hard earned money sucked up every month. No thanks! As long as their are alternative products, I'm in.
The amount of money I will have in this account will only be for bills I cannot pay with cash, which will be a small 'riskable' amount every month. Otherwise, we use cash. We tried a bank account last year and the fees just weren't for us. I'm so glad this has come out.
So whats the pro's and con's of the walmart money card vs. bluebird? Should I countinue to use the walmart money card or should I use the bluebird? I do know I am being charged three dollars to load monies onto the walmart card, and charged three dollars a month fee. What to do?
Scare tactics do Nothing but harm the Ill-informed and the companies that try to help those whom they serve. The author is an idiot, plain and simple. He or she…. is a strategist, not someone who may speak with authority on money…it's mechanics nor how processing works!
Yet the author feels their mind can grasp the understanding of this subject is beyond me let alone baffles me to my core! This is a weak-minded pencil parrot with a bullhorn doesn't know that during the 2008 banking bailout era created a very little-known law pertaining to pre-paid credit card companies. In a nutshell, 100% of your money must be backed with money…ie, you put in your paycheck on a bluebird card, ALL your money is sitting into an account with your name on it!
Unlike the banks and credit unions, only 1/9 th of your money is really there. If you put your paycheck of $1,000 in your bank or credit union…only $99.99 must be in the reserves BY LAW!
Now..you tell me which is safer?…oh yeah..the FDIC! If a bank or credit union goes under and isn't absorbed by another bank, they do insure you …they can take 30-40 YEARS to repay you!
Yes the credit cards come with fees however AMEX fees to the store owner are set in stone.
Typical fees on Amex are 2.89% or 3% or 3.5% depending on the type of store you shop in. From what I've seen, some processors rape their clients (store owners) and put them at 4% to 7% for Visa-MasterCard debit/credit fees..and they don't even know it! Yet, the card processor says that AMEX is expensive! WOW, that is bold…but that's how they do it.
Let's put this fear tactician to bed…GM took money..still hasn't paid it back. Do you see people driving new cars and trucks? Yep!
UPS took bail-out money. I don't know if it's been paid back, but are they delivering packages in the big brown trucks-worldwide? HMMMM!
So- shah gilini, author of the aforementioned article..when the adults are speaking, that means you keep Your comments to yourself, also… Take your crayons, construction paper mess and child-safe scissors to your crib and remain in timeout until we decide on an appropriate punishment for Impersonating an adult that knows something about Money and its Mechanics.
…and stop wearing that disgusting Trump after shave…
Excuse me, AMEX card fees are lower than what merchants are being charged to debit/credit cards via Visa and MasterCard. Geesh people, since when do you care about store owners?
You don't! You only care when you see they can retire comfortably and drive and live in nice things and places!
Prepaid card companies are required by law to back dollar for dollar your deposits..the BAILOUT law of 2008! I suggest you read it sometime..oh yeah, you won't because you'll take the author "Shah's" word for it!
Banks and credit unions are only required to put 1/9th of the money in their reserve account with the state and federal regulators…hmm genius, that means if they go under, you are screwed. FDIC will pay you back..in about 20-30 years. Yeah, it's insurance Einstein.
Not with a prepaid card, your money has your name on it. Amex and walmart will split up the card fees and the monthly fees.
Oh yeah…AMEX…Is a bank. Wrap your head around that thought!
Here is something the author doesn't know…
The author doesn't understand processing fees. He doesn't know that AMEX has fees set by industry so all the stores in that SIC code are all charged the same!
Ie, all convenience stores are at 3.5%
All wholesale are 2.89% and .15 cents
So on and so forth…
Yet, If the store owner has debit/credit card fees by visa and MasterCard, they may pay anywhere from 1.6% – 16.5%. Yep, I've seen it. Depending on the fees set by guys like me…the processor!
Regardless of govt intervention/fees imposed by regulation.
There are more dirty secrets folks.
Just because the Dodd-frank bill was in law with the addition of the Durbin admendment set govt regulated fees with debit cards wasn't geared to help you or me or the store owner, it was another bank bailout put on the Backs of the store owners which In turn..you and I are paying for.
Government set debit fees at .21 cents per transaction…but banks left their merchant fees at 1.05% and up…so they lowered the floor so the banks can profit more.
Here is an example…$100 charge at the merchant (store)
Bank/processor charges (store) $1.05 because that is the rate they are charging
True cost to bank.. .21 cents
Now..can you see the profit to the bank or processor? .84 cents
Yes it is nickel and dime but when you spread this out over several people making swipes several times per day, it really ads up!
Have fun pondering this!
excellent site looking forward to the Monday Morning Newsletter!
I used a prepaid card for a while because I had a Judgment against me and they kept trying to freeze my accounts and I never had any problems with my prepaid card.. Either they can't access them or they're not on their radar.
Our obsession with electronic payments is squeezing small business owners. I have to charge upwards of 20% on some items just to cover bank fees. Bottom line: consumers pay more because they can't handle cash. Our laziness will be the death of us!
This article has a tone of bias against pre-paid card holders being "unbanked". Too bad more research wasn't done to include those of us who use them to purchase/pay bills online. We switched when our local cable company began charging a $2.99 "convenience fee" when we paid cash at the local office (and how this is "convenient" still hasn't dawned on me). Now, if our online identity is compromised, there is no connection to our bank account (which is quite healthy, thank you). I for one will be looking into the Bluebird card.
It's clear by your Mission Statement ("Money Morning is here to help investors profit handsomely on this seismic shift in the global economy") is geared towards the exact type of person we, the taxpayers, had to bailout in the not so distant past. And…I might add…the type of person we DID NOT want running this country. Disgraceful.
I'm not sure who you're referring to when you say "we" as in the person who we did not want running our country. Please speak for yourself and not the entire nation, because I, for one, voted for our president and I'm glad he's running this country.
What would you have done as President when the Real Estate Industry crashed and sent our economy spiraling into a world of hell and a great number of industries were going down in flames and needed government assistance lest they take our economy down completely? What would you have done to promote consumer spending by stimulus in order to inject some life back into our economy? Or better yet what would you have done to help the millions of Americans who lost their jobs and were standing on their last leg barely making it with the peanuts they were receiving from Unemployment? Or how about the school grants that have sent thousands of Americans back to school to learn trades and skills that would take them out of their impoverished states and into a better life and job that would both increase the quality of life and strengthen our economy? What about finally accomplishing something in the "War on Terror" ? We finally got Bin Laden!! Bush was searching for him for how long? And I'm not saying anything negative about Bush, but we as Americans, of ALL backgrounds, have to STOP bashing our President because we don't like the color of his skin or for any reason based off of unfounded and biased opinions of others.
Its time to come together to help OUR nation. And that includes everyone IN IT.
Ummm, you need to stop drinking the kool-aid, dear, it's obvious you've had entirely too much!
Uh Obamas military machine is now in thirteen countries as the aggressor. Obama is handing fighter jets and Abrams tanks and handheld weapoms of every description to known terrorists, Obama is smuggling arms through turkey into Syria to aid the rebels who also were our enemy in Iraq which led to the death of Stevens and three others including a marine who chose to disregard direct orders from the white house to stand down and not protect Stevens and other Americans (Bengazhi). Obama didn't bail out the corporations the first time around Qe1 Bush did, it failed it shouldn't have been tried again Qe2 and again Qe3. The value of the dollar since Obama took office has been cut in half according to the gold standard, and govt deals and manipulation by the Fed are the only thing keeping hyper-inflation from destroying everything instantly. Gitmo is still open. A massive percentage of violent crime in this country is perpetrated by illegal aliens… Obama is giving them amnesty; therefore Obama is directly responsible for massive numbers of violent crime. Obama sent weapons across the Mexican border to drug cartels, intentional let them walk; resulting in the death of hundreds of Mexicans and several Americans. Obama could create an economic boom in this country instantly by lifting his moratorium on drilling here in the states; and gas prices would plummet as well; disposable income rise and people spend freely; get out of debt; provide for themselves and since they have a job; they pay taxes so we don't have to borrow 6 trillion 6,000,000,000,000.00 from china over the next four years. Bin Laden was killed in 2008 by Seal Team 6 as he left The hospital where his mother was being treated, an American hospital, we knew where he was at all times he. Isiged her at least twice a year during the "man hunt" his death was kept secret so the war would still be funded. Bush was a blow hard ass; but Obama is a communist who is systematically destroying this country. Nothing easiest about anything, he is only half white. I am a conservative black man; and I saw what he was "a socialist Marxist propagandist" from the beginning. He is an anti jobs growth, anti freedom, anti American criminal.
And yay to the prepaid cards…
A'MEN!
Typical liberal racist!
I personally love this card, i automatically have part of my paycheck put on it every payday. The only fee i have was the $5.00 i paid to get the card. There are no fees to down load money if its automatic deposit and you put more than $1000 per month on the card.
I do have a seperate checking and savings account, but use this card for automatic pmts and pmts that dont have a revolving same date pmt. This eliminates overdraft costs. you also do not have monthly charges.
I also use this card in place of a traditional charge card for car + hotel rental.
Its nice to have options with your money and this card allows that.
as far as the card noy being insured, you can only have a minimum amt. of money on the card at one time, i think around $1200, so there's not much to lose. its a gamble but worth it.
What card are you talking about? I don't believe it's Bluebird. Have you even used Bluebird card?
I do not recommend prepaid card to anyone!I have got horrible service with them.They refuse to transfer my money out cuz they can't verify me by my email even though i set up an account. Registered online gave them all my info and set up my pin and even received my new card with my name on it but I can't take any money out or use it!!!!!I called customer service and they had me on hold for over 2 hours!!!!they told me there is no way to get my money out o=unless i vertifffied my account by email…The problem is that they say they send confirmations to my email but I don't recieve anything . I tried 4 different email addresses and still no help…They have hung up on me multiple times and my money till this day is still stuck with them on that stupid card!!worst company ever and worst pre-paid card ever .STAY far away
I have had the same experience with Bluebird, Agustin. Registered online, claim they can't verify me. Won't recognize my login. Frustrating. Does not inspire confidence.
Wow your brash and somewhat stuck up stance on these cards is quite sickening. I have been a loyal user of a "pre-paid" card service for quite a while now. I have had no problems and have been very happy with the service and features that come along with it. The tone of this article is one of failure. Why? Are you tired of paying outrageous fees at your current credit card company? Are you mad that the bank full of idiots lost some of your money? Was the bank closed and you were unable to access your funds on a Sunday? You almost seem to put down people that use this service like we are bums living paycheck to paycheck. Are you so rich that you have never had to live that way? Well if that's the case good for you, but don't throw this service under the bus like you have in this article. You almost seem excited to see it fail. Quite disturbing to me. I'll keep using my pre-paid card and continue to enjoy the benefits that come with it
@tysons' comment:
*clap*clap*clap*clap*…
Nailed it. Right in the forehead.
Amen brutha. Amen.
As a long-time user of the UpSide card (which I love btw, except the limit to 7 sales transactions per day) I will be checking into the BlueBird card for myself and my daughter.
I've never had any issues that weren't quickly resolved with one phone call! The fees I'm charged with UpSide are minimal compared to what I was paying at a bank PLUS I feel my money is actually safer because when I had a bank account twice I had issues with money being taken out that I had not authorized and it took forever to remedy that – and in one instance I was out $1500 that I never recovered!!
wye kaynt we git them goodies fer free lyk them ferrun places. i heer tell thay gits ta jumpin round and burnin stuff an tha gubmint jus roll over and giv it to um. wye dount the gubmint jes preyunt moor muny and mayk everbudy happy ?
dayum Jed, they'allz dun tryed that all-reddy…ya gotsta memberz back when we gots our $46.67 tax break thatchu drunk up? They got $46,000,000 and a pree-motion!