4 ms·

Have the near usurious transaction fees typically associated with those cards been regulated away, or are they still yet another way for financial conglomerates

by Arrath 5y ago

Have the near usurious transaction fees typically associated with those cards been regulated away, or are they still yet another way for financial conglomerates to nickel and dime more profits from the most vulnerable, while masquerading as a better option? I last had my pay deposited onto a prepaid card in 2009, so the laws may indeed have changed. Back then those fees were overly restrictive and quickly ate into my meagre take home (unless, ironically, I withdrew as much as I could with my single allotted fee-less cash withdrawal per pay period)

gruez 5y ago
> Have the near usurious transaction fees typically associated with those cards been regulated away, or are they still yet another way for financial conglomerates to nickel and dime more profits from the most vulnerable, while masquerading as a better option? I'm having trouble finding the source, but my recollection from a planet money podcast is that they're free to withdraw if you use their network of ATMs, but otherwise charge you a few dollars per transaction. As for whether it's better, maybe? It's certainly worse than a no-fee banking account at a local credit union (but with limited ATM access) or a big bank (but with a fee and/or minimum deposit requirements), but it's better than holding a wad of cash on your body.
- Arrath 5y ago
  >it's better than holding a wad of cash on your body. I can't argue with that!
plorkyeran 5y ago
California requires that whatever an employer pays you with be convertible to cash without paying a fee, but it doesn't appear to require that you be able to do so incrementally. As such it appears that you could still be forced to choose between transaction fees and cashing it all in one shot.
- Arrath 5y ago
  A further problem I found was being limited by the denominations the ATM gave out. Sure 20's only works in most cases, but when I'm trying to stretch my check and have to leave $17 of my $217 in there, it hurts. Getting to a teller window when they were open, or searching down an ATM that gave out 10's just wasn't in the cards considering my schedule at the time.

by Arrath 5y ago

gruez 5y ago

> Have the near usurious transaction fees typically associated with those cards been regulated away, or are they still yet another way for financial conglomerates to nickel and dime more profits from the most vulnerable, while masquerading as a better option? I'm having trouble finding the source, but my recollection from a planet money podcast is that they're free to withdraw if you use their network of ATMs, but otherwise charge you a few dollars per transaction. As for whether it's better, maybe? It's certainly worse than a no-fee banking account at a local credit union (but with limited ATM access) or a big bank (but with a fee and/or minimum deposit requirements), but it's better than holding a wad of cash on your body.

Arrath 5y ago
>it's better than holding a wad of cash on your body. I can't argue with that!

plorkyeran 5y ago

California requires that whatever an employer pays you with be convertible to cash without paying a fee, but it doesn't appear to require that you be able to do so incrementally. As such it appears that you could still be forced to choose between transaction fees and cashing it all in one shot.

Arrath 5y ago
A further problem I found was being limited by the denominations the ATM gave out. Sure 20's only works in most cases, but when I'm trying to stretch my check and have to leave $17 of my $217 in there, it hurts. Getting to a teller window when they were open, or searching down an ATM that gave out 10's just wasn't in the cards considering my schedule at the time.