Prepaid cards have a reputation for promising convenience, but hitting consumers with surprising fees.
So is the new prepaid card from Chase any different?
The answer is yes. Unlike some other prepaid cards that disguise a card’s true cost with a complex fee structure, what Chase does is something very transparent – they charge a single fee which covers just about everything you can think of. It’s not quite as good of a deal as the Serve prepaid card from American Express (a CreditCardForum advertising partner), but it probably deserves the title of being second best.
Here’s a quick rundown of what the prepaid Chase Liquid card will cost…
So as you see, the $4.95 monthly fee isn’t always going to be cheaper. However, when you consider the fact that you can avoid paying reload fees, ATM fees, etc… the amount you pay at the end of the month will likely be cheaper. That being said, it may (or may not) be the best prepaid card, depending on your specific circumstances.Here’s a more detailed review of the pros and cons for Liquid:
- Use for purchases anywhere Visa is accepted – As much as I love American Express, it is true that Visa is accepted at more places.
- You can load cash for free – With many prepaid debit cards, you have to buy a GreenDot MoneyPak. Those cost up to $4.95 each and can only be used once, to load up to $500 (so basically, you’re forking over 1 percent or more in fees). The nice thing about the Chase prepaid card is that you can load it up with cash for free at Chase ATMs and bank branches.
- No charge for customer service – The fact that I even have to mention this as a noteworthy benefit doesn’t even feel right, because it’s something everyone should offer. But unfortunately they don’t, at least when it comes to prepaid cards. Some prepaid cards give you a certain number of free customer service calls per month and then start charging you. However the Chase Liquid card provides unlimited calls to customer service for free.
- Chase has tons of locations – A lot of people say being “too big to fail” is a bad thing. Well I beg to differ. If you have a prepaid card, you actually want a national bank with a bazillion locations. There are more than 17,500 Chase ATMs and more than 5,000 branches. Translation? Plenty of places to load your card or withdraw cash.
- $59.40 per year ($4.95/month annualized) is less than some other prepaid cards, but not cheap – It’s like having the best house in a bad neighborhood. Sure, $59.40 is good on a relative basis, but when you consider that there are secured cards for bad credit that cost less, it doesn’t really make a lot of sense to go the prepaid route (especially if you want to build your credit).
- It’s worthless for building credit – Another reason that secured cards are a better idea is because they can help you build credit. I mean let’s be honest here… do you want to continue paying $59/year for the rest of your life just to have a Chase prepaid debit card? Or would you rather build your history and get a no-annual-fee Chase credit card?
- A few cards are close competitors – Going back to the prepaid Serve card from American Express, it offers free valuable benefits like purchase protection (qualifying purchases are protected for 90 days from theft or accidental damage). Another competitor is the US Bank Contour Card – if their banks are in your area, that card has a monthly fee of $4. Last but not least, PNC and Regions both offer prepaid Visa cards for around $60/year, but since they’re regionally focused, they’re not always a viable alternative.
At the end of the day, Chase has created a very good product here. It may make the most sense for people that already have a checking or savings account with Chase and want to get a prepaid card for their kids. Even though it may not always be the cheapest, at least it’s one of the most transparent… that’s a word you rarely hear associated with these types of cards! However the one from AmEx Serve is still a cut above in terms of pricing…
Last updated February 9, 2016