El banco del Walmart is issuing pre-paid debit cards, and like everything else at Walmart, they suck. Here’s some of the hidden fees:
Great idea, tap into the “unbanked,” and then rip them off. Here’s an even better idea for potential Walmart Debit Card users: cash! No fees!
Wal-Mart MoneyCard Cardholder Agreement [via J-walk blog]
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I can’t believe anyone would use a card with a monthly fee, period. I mean, some AMEX cards have yearly fees, but there’s a significant amount of service associated with it. $5/month just so you don’t have to carry your wad around with you is ridiculous.
Walmart certainly isn’t the first company to take advantage of those without bank accounts. These prepaid debit cards have been around for ages.
@Mr. Gunn: How is the $5/month fee any different from a checking account w/ a debit card that has a $5 fee if your balance is under $1000?
Comparing it to a credit card is disingenuous. This is basically a checking account w/o the checks, as far as I see it.
@mac-phisto: GreenDot SUCKS. Their fee schedule is just about the same.
But is worse about them, is that there is NO contact with a human. I finally figured out how to talk to somebody, but they were of no help.
It costs YOU $2, even if it is their fault.
I put $XX on a needy friends card. They never let me put the amount on there. Every time I call to try to get it fixed, I get a “That is a invalid card.” Thankfully the retailer gave me my money back.
That’s just fucked up. Wal-Mart is WRONG.
@Mr. Gunn: i can’t believe that you can’t believe that anyone would use a card with a monthly fee, ya know, seeing how people use them everyday.
I saw this just the other day on a Walmart circular. I thought that it was probably a good idea for immigrants who are scared to put their money in the bank. So they leave money under their mattresses, which really isn’t safe in the event of a flood or fire. This seemed like it would be perfect for them, but I guess you have to take the good with the bad. If you’re buying a debit card from Walmart, you really can’t complain about the quality you’re getting.
@mac-phisto: I thought it was all over the news when BofA decided to allow those who were illegal (or undocumented) to get credit cards as long as they had a deposit equal to the amount on their credit card in their BofA account. They can obtain mortgages as well from I believe Wells Fargo and BofA.
Wait–just checked online. Seems that option is only available here in California.
Also one of my ex-roommates while I was in college was an illegal immigrant–she had a regular checking/bank account via Wamu and a credit union despite her immigration status. That was a few years ago.
@gingerCE: undocumented simply means ANYONE (foreign or naturalized) that can’t prove their identity can’t open an account, not necessarily an illegal alien.
you’d be surprised how many americans have no official identification, or unacceptable ID (such as an expired license).
I consider it a stupid tax. You’re stupid if you’re going to use one of these and you’re stupid if you’re in the situation where this is the only way you can obtain a debit card.
@gingerCE: I agree that is the true definition of undocumented–but in California, anyone illegal can open a bank account as long as they have a taxpayer ID and may be able to get home mortgages from certain banks. Not sure if the other states do this as well.
BS BS BS BS BS
Did Walmart invested in mortage industry?
Or they are very, very greedy?
Fees paid by an upper-middle class fellow:
$0 card issue fee.
$0 reload fee.
$0 ATM transaction fee. (Foreign ATM fees are refunded.)
$0 ATM balance inquiry.
$0 Monthly fee.
$0 Statement fee.
$0 minimum balance.
Somehow that seems backwards to me.
@mac-phisto: I have one of these cards. I got it because WaMu kept holding my deposits for 2 weeks at a time, and I couldn’t find another low-cost checking account. WaMu was probably holding my deposits in order to make money floating my deposits, and/or on fees, hoping I’d bounce a check, even though I’d deposited money 8 days previously.
Except for the $8 sign-up fee, the fees on this card aren’t so bad, or much different than a low/no-balance checking account . With direct deposit, and by making all withdrawals at the WM checkout counter, I pay just under $5 per month in fees. I have the convenience of ATMs if I need them.
If I want to deposit a check directly into the card account (a rare thing for me), it costs $3. I can look up my balance or print a statement online for free, and I can get a balance statement at a checkout for free, and I can get the balance sent to my cellphone for free. It’s really not so bad.
I can’t get these services cheaper at a local bank. Some of you may have less expensive banking options because of local competition, but there are many areas of the U.S. where there is no free lunch where banking services are concerned. Many people pay ATM fees and account maintenance fees. I have a friend who makes lots of money, but his bank charges him $14.95/mo maintenance fee and $2 for each ATM withdrawal.
Other questions answered: The money is held by “GE Money Bank.” I believe this is GE as in General Electric. WM has been desperate to get into the banking industry for years, but the gummint won’t let them. A Walton does own a regional U.S. bank though; it’s called Arvest Bank, and operates in a few southeast states.
Customer service is very limited. You can’t send an email to anybody, and you can’t talk to somebody on the phone for free. There is a mailing address, and you could always send a scathing letter to Wal-Mart if something goes wrong. WM probably won’t mess up its hopes of getting into banking by doing a bad job with these cards, so I expect no problems.
It’s really cruel for people to call others stupid for using one of these cards. Quite a few people (and I suspect the number is increasing every day) have no access to credit cards or banks for any number of reasons, including bounced checks they cannot repay, extended unemployment, illegitimate collections activity, illness, poverty, being an immigrant or being unable to prove one’s identity.
Cash is fine, but it’s not convenient. If it’s lost it’s gone forever; WM will refund your $$ if you report your card lost/stolen. You can’t shop online with cash. I despise going into the gas station to pay, waiting in line, paying, pumping my gas, and returning to get my change (if any).
If you all were more informed it would help. There are no monthly fees if you load $1,000 a month. Also if you go and deposit your paycheck all or part there is no load fee. Only load fee if you use cash. If you are a walmart employee, you can use your discount card on this item and if you sign up for direct deposit they give you the initial cost of $8.94 back. Your limit for no fee is to deposit $750. I use this card because my bank is a small credit union that doesn’t offer debit cards unless you keep $300 or more in the bank at all times. So it costs me nothing to use this card. Every morning I get a text on my cell phone as of to how much is on my card. If you use a register to keep track you never have to worry about how much is really there.
I have a debit card from my bank that only cost me money when I lost it and had to pay $12 to replace it. Cash also comes without fees.