Start the conversation
Comment on This Story
Or to contact Money Morning Customer Service, click here.
[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.
About the Author
Shah Gilani is Chief Financial Strategist for Money Map Press and boasts a financial pedigree unlike any other. He ran his first hedge fund in 1982 from his seat on the floor of the Chicago Board Options Exchange. When options on the Standard & Poor's 100 began trading on March 11, 1983, Shah worked in "the pit" as a market maker. He helped develop what has become known as the Volatility Index (VIX) - to this day one of the most widely used indicators worldwide. After leaving Chicago to run the futures and options division of the British banking giant Lloyd's TSB, Shah moved up to Roosevelt & Cross Inc., an old-line New York boutique firm. There he originated and ran a packaged fixed-income trading desk and established that company's "listed" and OTC trading desks. Shah founded a second hedge fund in 1999, which he ran until 2003. Shah's vast network of contacts includes the biggest players on Wall Street and in international finance. These contacts give him the real story - when others only get what the investment banks want them to see. On top of the free newsletter, as editor of The 10X Trader, Money Map Report and Straight Line Profits, Shah presents his legion of subscribers with the chance to earn ten times their money on trade after trade using a little-known strategy. Shah is a frequent guest on CNBC, Forbes, and MarketWatch, and you can catch him every week on FOX Business' "Varney & Co."
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.
How do you add money to it ? I have never figured that out and does anyone know how to change your withdrawl limit ?
You can add money to the Bluebird card at the money center in the larger Walmart stores, and I think maybe at the checkout registers at some. I've used it for a couple of years or so, mainly use it with my PayPal account to order things online, PayPal just automatically takes it out of the Bluebird account, it's great for people who can't get a checking account for one reason or another.
You can also add money to your BlueBird at any 7-Eleven location. There is a small processing fee for the transaction.
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… Read more »
I have not found another card that can match it. I also like that my money instantly transfers from my bank with no 3-day wait or hold.
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… Read more »
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… Read more »
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… Read more »
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… Read more »
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… Read more »
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… Read more »
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.… Read more »
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… Read more »
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… Read more »
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… Read more »
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… Read more »
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.… Read more »
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… Read more »
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… Read more »
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… Read more »
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… Read more »
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.… Read more »
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… Read more »
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… Read more »
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… Read more »
…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… Read more »
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)… Read more »
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… Read more »
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… Read more »
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… Read more »
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… Read more »
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… Read more »
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… Read more »
@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… Read more »
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!
DO WHAT?
I have to agree with Tyson. This is somewhat of a stuck-up stance in regards to prepaid cards. I have been using one in establishments where I don't feel comfortable using my debit card and for online purchases. It's quite handy and you are not risking your bank account by doing so. I'm not opposed to paying the fee in exchange for safety. With regards to the person that suggested that Obama will get a piece of the money collected…hahaha. That's hillarious! Everyone knows that Obama is becoming very wealthy due to a gullible public, but this is most definitely… Read more »
I just want to say that I have American Express Prepaid Card I love it. The card is well worth the 5.00 dollar for loading money on it. Trust at some banks if you keep certain amount in your checking you going to get with 5.00, 10.00 dollar charge. I use my card just like any member of Amercian Express. Plus I was out town and lost my card and call the customer service and they had card within 3 days and they make sure I had funds on me to get home. Do your homework and dont just negative… Read more »
Firstly, I dislike the tone and "holier-than-thou" stance the author of this extremely opinionated drivel takes…I can see the podium and smell the clean "banked" three piece suit all the way from back here in the nosebleed section…how do you see anything when you're looking sooo far down that nose? Thank you so much oh noble one, protecting us unwashed masses from the evils of..wait a minute…BIG BANKING….the very ones that got us into this mess in the first place..than parachuted into their bailouts… oh yes we remember. In an economy ever widening between the haves and the have-nots, credit… Read more »
Just a lot of stupid people posting ignorant opinions about stuff they know nothing about, but will swear till their last breathe they are right and everyone else is wrong.
Tyson, you go boy
I paid with my card at an Exxon station….i charged 44.00 dollars but when i looked at my balance they took out 100.00 dollars. When I called them they said retailers put a hold on an extra fifty dollars . i went to the exxon station and they blamed blue bird!!! Who is telling the truth and what gives anyone the right to take out double the amount of purchase!?! Has anyone else had this happen to them??
This has happened to me the problem is you used it as a credit and not a debit and it was the gas companies doing.
You have to buy a specified amount of gas before you pump, at the register, rather than just press the credit button, which puts a hold on a certain amount of money on the card.
ALL gas stations put a hold on a ridiculous amount of money when you buy gas with a credit or debit card. I learned long ago always to pay cash for gas!!
There is a pre-paid card that IS FDIC insured. That is the Chase liquid card. It's through chase bank but is a pre-paid. Also, Netspend. They once refunded me for unauthorized charges because they were insured. While I'm sure there are prepaid cards that are not insured… Some are.
This expalins why all of a sudden last month (October) that Walmart's Telecheck system started refusing my checks for absolutely no reason! They are trying to force cusotmers to use this crappy Bluebird B.S.
And I am not the only one. there are complaints all over the internet about it, and several people that we know started having the same problem.
This needs to be stopped! I will start driving out of my way to avoid shopping at Walmart now!!
STOP GIVING WALMART ANY OF YOUR BUSINESS!!
its not Walmarts telecheck system … you need to learn.. telecheck is its own company…. Walmart is just a company that uses TELECHECK… it is TELECHECK you are mad at … it is you that does not know where to focus your anger… how ignorant
I like your brilliance, so I want to share a thought that I think goes right along with Wal Mart wanting to work with American Express. I've actually been nervous about sharing this. I'm talking about the Federal Reserve Board/Bank/House & Senate created and authorized "NSF Fees." It took a long time to come up with the next thought I have to share. Why aren't those "NSF Fees" labeled or named what they really are? Lines of credit, interest rates on short term loans when one of "Wal Mart's paycheck to paycheck customers overdrafts their bank account for a couple… Read more »
This basically boils down to two parts.
1st, to eliminate the use of and if possible all together, a cash (or coin) currency.
Which brings us to the 2nd part.
Card transactions, and card transactions, are traceable. It's just data on the net and once it gets logged it can be traced.
Government you say? Well they haven't a clue, it's big business and the consumer marketing firms that want to pigeon hole every one of us into that particular popup add group they have all lined up from the scooter store.
Donnie, Is the the gas stations fault. It is typical to place a preauthorization hold on an amount when you first swipe your card. There are formulas that vary by establishment. It a function of the price of gas and the typical amount sold per transaction. So $5.00/gal of gas * average 15 gal tank for a car or 20 gal tank for SUV = $75-$100. The hold falls off automatically after a couple of days or whatever is set by the merchant. Sometimes the merchant will cancel the hold which is very common with large corporate chains like QT.… Read more »
I got the bluebird and right after the first time I used it my account was wiped out by some type of fraud. Bluebird canceled my account but I have been on hold for 5 days trying to speak to someone to get this worked out. Meantime Im out of my earned money. I am not to happy with it.
i think BLUEBIRD AMEX CHECKING ALTERNATIVE IS FANTASTIC. For those who cannot get credit cards or bank accounts and to have to rely on prepaid credit cards as last resort to banking and saving to pay bills became a huge convenience but with a service charge. and let me tell you they add up. To actually have an AMEX chkg account and all of its features with NO MONTHLY FEES or PURCHASE FEES; NO HIDDEN FEES, is the greatest to me since i have money mgmnt issues. This is definitely a Positive thing that WALMART & AMEX can afford to… Read more »
BLUE BIRD cards – I used the SUB-ACCOUNT feature!!! Got one for my parents out-of-state – could get it in THEIR NAME – mail it to them – and now instead of paying high fees when I wire them money from NY – they just use the sub-account Blue Bird card!!! I LOVE IT!!!!!
I have been using the bluebird card for some time and I am absolutely pleased with it. Beats the tar out of almost any card out there and since I cat get a checking account I have no place else to turn. Some of the other prepay cards are so full of hidden fees they should be banned for usery fees. Sounds to me like you have your own agenda to push and as far as Obama getting a part of the fees, give me a break. As usual big business would have be having a fit because they can't… Read more »
Your almost there, but I'll help you out. ALL fees, taxes and everything else are paid by the consumer in the end. Unlike the government who can steal it, the only way any company can pay for anything is by exchanging a good or service for money. You want corporations to pay higher taxes? It's in your loaf of bread… Want "free" checking "free this" or "free that" you pay for it in the cost of other items. The retailers, producers, transporters, marketers and even the janitor crew have to eat. And there is only one way they can get… Read more »
I hate the fact you can only get $2000 in atm transactions..this is my money but I can't get it. I can't buy an money order to pay my house rent…this is crazy
The laws are there to "protect you"…..hahahahaaaaaa……..(as if they PROTECT anyone from the robbery since 1913!)….doubtful. (Then we all woke up.)
Bluebird card SUCKS!!!! DO NOT EVER GET THIS CARD!! IT IS A COMPLETE SCAM!!! After depositing $200 on top of the $5 activation fee,you get "the run around" right off. I haven't even used the card and they locked my card from me for no reason,saying it was a "security issue" so I call the "24 hour" customer service which has NOTHING!! To do with the card at all! It seems its a offshore call center. You get all these foreign people answering calls that WILL NOT HELP YOU!! They will only transfer calls,over and over!! Put you on 15-30… Read more »
Neither Walmart nor American Express are forcing anyone to sign up for their product. I've researched the Blue Bird product, and all of their terms and disclosures are pretty out in the open. I signed up last week for an account. If I want the $250,000 FDIC guarantee, then I would have gone with a traditional bank account. If Walmart and Amex are going after the pay check to pay check customers, then I don't think the lack of this guarantee is going to be an issue. Also, I have to preload your money. If for some reason Amex goes… Read more »
I can echo the message above, titled "BLUEBIRD SUCKS". The same thing has happened to me. I cannot get my money! They sell this card at WalMart. When I went to WalMart and tried to make a $17 purchase, they locked my account for "suspicious activity"!!!!!!! AT WALMART!!!!. for $17!!!!. Then you call customer service, where the foreigners with horrible accents tell you that you have to call the "Account Protection Department" so they can unlock it for you. But they don't answer. I spent 4 and a half hours on hold only to be disconnected automatically. It is a… Read more »
So far no probs with bluebird. My last card was thru western union. paid room rent of 55 and my reciept showed my balance. I then added another 125 to my catd the same day. made 2 purchaces totalling 24 dollars. b4 bed i checked balance. the next morning i was 55.60 less than the night b4. western union said that it was for a room payment. which means i was overdrawn. thought the purpose of prepaid was to avoid that issue. so am out the money and was treated extremely rudely by everyone that i spoke to. still waiting… Read more »
I am a Gamer and did not want to use my normal bank account for my hobby so i decided to get the blue bird card as an allowance card to keep my spending from getting out of hand. I put $200.00 on the card to start, got home activated it and confirmed emails and all that jaz, excited to try it out i get on the Electronic Arts website and try to buy a game pack, it did not work so i tried a few more time thinking it was me. After about 4 tries i decided to call… Read more »
Yeah sounds like a scam….hate talking to these operators from India…english is terrible.
I'm not here to argue about Obama care, which has nothing to do with the topic of prepaid cards, but I am here to shed light on the banking world. I work for a company who is outsourced by a bank to do their customer service and I can tell you I didn't like banks before, but I really don't like banks now. We make absolutely no money but are required to know more than those who work in the banks themselves. The bank doesn't pay the company I work for, for calls past two minutes and twenty seconds because… Read more »
For those of you who have complained and swear that it's Blue Bird that puts a hold on more than what your transaction is I can guarantee you are wrong. Again, I work for a bank and see this everyday. It is up to the merchant how they put a hold and how much they put a hold on of your money. All day everyday I get calls because people see the transaction amount is on hold by a company twice and they think they are being charged twice. When you use any card as credit the money is deducted… Read more »
i have just decided to get the bluebird amex after 1 month of green dot. both are pre paid with very low fee if you use direct deposit-which ill do. the biggest advantage to me is no more overdraft fees and there is no credit-it is like cash. I did bank with td north and chase both of which i liked ,but,did not the the credit card/atm games they played-like im shopping and using my card-i go over my limit- they allow the go-over -and then charge me. td bank actually just lost a large complaint,and,they will be paying 65,000,000… Read more »