While we’re used to the idea of people keeping money in places other than bank accounts — preloaded debit cards, sock drawers, comic book collections — there’s one way consumers are storing their cash that’s more popular than several financial institutions: Starbucks cards. [More]
pre-paid debit cards
Here at Consumerist HQ we’re a bit leery when it comes to pre-paid debit cards. They always seem to come with hidden fees that can pop up and punish users for trying to access their own money. And when you throw in a celebrity like say, the Kardashians or in the latest news, Justin Bieber, the potential for the younger set to be exposed to this fee-laden world grows.
Yesterday, we told you about personal finance personality Suze Orman’s decision to get behind a pre-paid debit card that she hoped would be of help to consumers who either couldn’t get a line of credit or wanted to avoid using credit cards. But now that people have had a chance to look at the specifics on Suze’s card, the reaction from some is a bit of a shrug.
Really wish I’d know about this when I chatted with personal finance personality Suze Orman back in December. The TV host/author/owner of the whitest smile on Earth is set to announce her own pre-paid debit card, which she promises won’t be a pile of fee-laden crud like the one the Kardashian sisters slapped their name on in 2010.
A California was stuck without car insurance and unable to pay her bills after $300 she’d put on her pre-paid Walmart debit card had vanished into the ether. Making matters worse, the retail giant has no idea how the money disappeared.
Walmart, our nation’s largest employer, has eliminated paper paychecks. Now employees can choose to sign up for direct deposit or have their wages added to a pre-paid debit card. ABCNews says that only about half of Walmart’s employees use direct deposit — the rest either prefer a paper paycheck or, in some cases, don’t have a bank account.