Prepaid credit cards are becoming increasingly popular amongst consumer to
improve financial discipline and credit history. Though, a prepaid card doesn't
come a with late penalty because there are no repayments to be made, but there
are various other fees associated with them, which increase the ownership costs.
Having a good knowledge about these fees helps the consumer make an informed
decision. Listed below are some important fees levied on prepaid cards.
Charged by the prepaid card issuing company for usage of the prepaid card on
an annual basis.
Charge by the prepaid card issuing company for usage of the prepaid card on
Customer Service fees
Charged by the prepaid card company for providing initial customer service to
issue the prepaid card.
This fees is charged by the prepaid card issuing company for activating the
Fees per purchase
Every purchase done by your prepaid card can attract a fee per purchase. Some
prepaid card companies levy this fees to increase their revenue.
ATM Cash withdrawal fees
Whenever you withdraw money from ATM's prepaid card company slaps ATM cash
withdrawal fees to your account.
This fees is charged when your prepaid card is not used for a
specified period of time.
Now, you have an idea of the most important fees associated with prepaid
cards. To use this information you can compare various prepaid cards and fees
associated with them. Comparing this way, you will be able to lower your total
ownership cost of prepaid cards.