Rush Card a Scam or Not?
Q: I have bad credit and want a credit card. Is the Russell Simmons Rush Card a scam or ripoff? That’s what I was told.
A: Launched in 2003, it’s been around almost a decade now. But before we talk about what the critics are alleging about the Rush Card, review what it does and doesn’t offer:
What is it exactly?
If you apply for a Rush Card you will get a reloadable prepaid Visa card. This is not a credit card – you can only spend what you’ve loaded on it. This is not a bank account either – though it does offer a few bank-like services.
In a 2011 interview with Forbes, Russell Simmons reportedly said this about who the card is for:
“It’s not for the 60 million underserved Americans who cannot get a bank account, it’s for most middle class people. It’s half the price of, probably a Bank of America free bank account to operate.”
Is that really an accurate description of the Rush Card? Take a look at the fees below and decide for yourself. I have included what are probably the most common fees. There are others, like fees for international transactions, but for simplicity sake I will stick to those which are probably the most common.
Rush Card vs. Bank of America: Who’s Cheaper?
| Rush Card (pay as you go) | Rush Card (monthly plan) | Bank of America (eBanking plan) | |
|---|---|---|---|
| Setup Fee | A one-time fee of $3.59 to $14.95, depending on which card design is chosen. | A one-time fee of $3.59 to $14.95, depending on which card design is chosen. | none |
| Monthly Fee | None | $9.95 | $8.95, but free when you enroll in paperless statements and use Bank of America ATMs to do your banking |
| Statement Fee | None for online statements, $1.00 per month for paper. | None for online statements, $1.00 per month for paper. | None for online statements, paper provided for no additional charge if you are paying the $8.95 monthly fee |
| ATM Balance Inquiry Fee | $0.50 each | $0.50 each | None at Bank of America ATMs |
| ATM Withdrawal Fee | $1.95 each | None for first 2 per month, then $2.50 each after that | None at Bank of America ATMs |
| Cash Deposit Fee | None from Rush Card, but their 3rd party load partners (MoneyGram, Western Union, and MoneyPak) typically charge up to $3.95 to $4.95. | None from Rush Card, but their 3rd party load partners (MoneyGram, Western Union, and MoneyPak) typically charge up to $3.95 to $4.95. | None at Bank of America ATMs |
| Direct Deposit Fee (i.e. payroll and govt. benefits) | None | None | None |
| Paypal Deposit Fee | None | None | None |
| Money Order/Check Deposit Fee | None, but mailing them in will require postage | None, but mailing them in will require postage | None, when deposited at a Bank of America ATM |
| Purchase Fee | $1.00 per transaction (with a max of $10.00 per month) | None if you press "credit" after swiping card. If you select "debit" and enter your PIN, you will be charged $1.00 per transaction. | $5 per month for unlimited debit card purchases |
| Online Bill Pay Enrollment | $2.00 | $2.00 | None |
| Online Bill Pay Fee | $1.00 per bill paid | $1.00 per bill paid | None |
| Card Replacement Fee | $3.95 | $3.95 | $5.00 |
| Plan Change Fee | $1.99 to change your plan | $1.99 to change your plan | None |
The above were published fees as of Oct. 1st 2011
As you see, Bank of America still appears to be a much better deal than the Rush Card. I’m not sure how Russell Simmons came up it being “half the price, probably” unless he is making the assumption that account holders will regularly be paying overdraft charges, too.
What’s fact and what’s fiction?
Is there a Rush Card scam going on or is this a product that really will save money? Well in all fairness, if you don’t have a bank account and use paycheck cashing services instead, then the Rush Card can save money (versus chucking over a 2% to 3% fee every time you cash a check). Furthermore, if you frequently overdraw your checking account (and pay overdraft fees regularly) then the Rush Card may end up costing less than a checking account. So this card is not a “scam” or “ripoff.” The card is operated in a 100% legal manner and in their defense, they do disclose the fees upfront.
That being said, people heavily criticize it because of all the fees. Is it the most expensive prepaid card on the market? No, there are some others which cost more. But on the flip side, there are also plenty of others which can cost a lot less. For example, the American Express Prepaid Card has almost no fees if you are just looking for a reloadable card to make purchases with.
Your best bet, however, would be to get a low cost or free checking account and use the debit card that comes with it. Even if you have awful credit and have burned bridges with past bank accounts, there may still opportunities out there. Many banks offer “second chance” checking accounts for bad credit. Another option would be to go to a local credit union – many have lower fees than banks and are more willing to accommodate a bad credit history.
Written or last updated October 2011
Ive been a Rushcard holder for years, and up until today, I’ve been happy.
However, my card was blocked today. I use my card for everything and have no cash on hand. I have not yet heard back from an agent, and I need my money NOW. Having to wait any longer than a day for MY money is unacceptable!!!! I’m panicking because I don’t know why my card was blocked, and I need my money to put gas in my car and buy groceries. I’m a single mom and rely on my income alone. For those of you who had cards blocked, how was it resolved?
This is a horrible card! This is not a joke. They gave my deposit to someone else because the computer generated ID was incorrect. They told me one day everything was fine, the next they gave my money away. Then they tried to say my social security number wasn’t matching to the deposit. My employer showed me several documents that showed otherwise. After I complained they kept changing their story. They even GAVE ME THE WOMAN’S SOCIAL SECURITY NUMBER. They really did! I was shocked! I got this card because I didn’t trust banks! Well guess what? After this experience I ran to a bank and signed up for an account. My money is now safe! If you have this problem with RUSH card then please go into your local CHASE bank. They will fix it! Lord help anyone who doesn’t listen to this warning! Beware!
They have my deposit now for 6 days and tell me yet another time that it will take 3 -5 business days. I am single, just got the card, and now I cant get my paycheck. I also adopted my grandson who is six months old, he comes in this afternoon. I don’t have money for baby food or diapers is there anywhere I can go to to get my paycheck?
So I got about $5000 dollars on my Rushcard and it’s blocked due to some BS investigation they’re doing, I need to find a way to get my money off. If anyone had or is currently having the same problem reply to the comment so we can cancel this trick Russell Simmons and the Indian customer service people have been pulling on US!!!
Yes, my card is blocked with 2182.00 on it. I contacted the FDIC, FTC, Attorney General all today. I also went to their Facebook page and demanded help. An AGENT got on and said, told me that I was being investigating for fraud. How can you fraud a pre-paid card. I have to make electronic deposits. I load with Moneypak a card you can only buy with CASH!!!!
yes yes i know what yall are going through they hit me up and yes im pissed off we need 2 take their butts 2 court im sure there are more then we
I HATE THIS CARD NOTHING BUT BOGUS FEE’S COME ON RUSSELL SIMMONS YOU SHOULD BE ASHAMED PPL DONT HAVE MONEY LIKE THAT TO WASTE!!! IM HIGHLY UPSET EVEN THE CUSTOMER SERVICE IS BOGUS I HAVE BEEN CALLING FOR 3 DAYS!!! THIS IS THE WORST CARD I HAVE EVER OWNED SOON AS I FIGURE OUT WHO WILL TAKE ALL MY MONEY OFF THIS CARD I AM THROWING IT IN THE GARBAGE AND NEVER LOOKIN BACK I THINK ALL RUSH CARD OWNERS DESERVE TO HAVE THESE FEES WAIVED!!!
I can’t do rush card anymore. My card has been blocked for a total of eleven days now.
The day I found out my Rush card was blocked I sent all the forms they requested via fax. I was told they would send it to cooperate and my card would be unlocked in 48 hours. 2 days later I called back to see why card had not been unblocked, that is when I was notified that they had not yet looked to see if they had found my documents. They located my documents and sent them to the main office and told me it would be another two days before i would get a response.I have called them every other day since and still have not received a response.
I have asked to speak to someone in charge and cannot get any assistance. The costumer care services say they don’t even have the main number. I am a single mother of two boys and I’m currently pregnant with twins. I currently have a sum of nearly six thousand dollars on my card and they won’t allow me to receive my funds. All of my utilities are about to be cut off, I’m about to be evicted for lack of payment, and me and my children may be living in a homeless shelter soon. Rush card has all my money and won’t even close my account and send me my six thousand dollars.I beg all who read this *PLEASE DON’T GET RUSH CARD. THEY WILL TAKE YOUR MONEY AND LEAVE YOU AND YOUR FAMILY STRANDED*.
I just pray my kids and I find relief from this company soon. We have no family here and will be screwed without our money. God help us
Contact the FDIC, FTC, and Attorney General. All can be done online. We all must file a complaint. I even emailed several news stations. Maybe Russell Simmons don’t know.
i never had this type of problem before in all my life with any other prepaid card. i think this is a gimmick!! rush card is full of ****!!! if i can sue y’all asses i would, but I’m poor..and yall got what little left cash in yall possession, so yal got me by the snoggins for now..imma shut u,,until i get my money….uuuuhhhm..,yelp,,. WHERE IS MY MONEY???? GIVE ME MY MONEY!! NAW THE HELL WITH THIS.,I’M BROKE MESSIN WITH YALL
They charge u fee after fee. Loaded 80 and they charged me 3 monthly fees. That’s BS. F U RUSSELL SIMMONS!
Even compare to TD, if have at least 100 in the account everything is free and also Bank of America just Nixed the $5 fee for debit so its even cheaper.
I’ve had an account with B of A for years and haven’t paid a dime and I’m not one of those 5000+ ppl. What the Rush card does is pray on ppl that simply don’t know how to manage money.
THAT IS SO TRU.., cause its hard for me to manage my money, especially when they got it on hold for whateva reason..
This article fails to illustrate several key points and therefore is not a fair comparison. For example, the types of checking accounts describe in the article are not actually “free” checking. These accounts include NSF fees (non-sufficient funds), while RushCard accounts cannot overdraft hence are not subject to these types of fees. NSF fees can pile up and bring tremendous burden to low and middle income families. RushCard also offers significantly lower transfer fees than most banks.
Hi Clayton/RushCard, thanks for the comment. With all due respect, it is a fair comparison because you are making the assumption that someone will incur NSF fees. I’ve had bank accounts since I was 13 (well over a decade ago now) and have never incurred a single NSF charge over all these years. Simply put, if you don’t overdraw your checking account balance, then the “free” accounts are a good deal.
However on the flip side (in support of you) I do agree that if you are someone who isn’t good at managing their account balances and regularly encounters NSF fees, then you are absolutely right- a RushCard account could be a cheaper alternative. But the philosophy/approach I prefer is to crack bad money management habits and instead, just have the discipline to avoid overdrawing a checking account. If I could manage doing that as early as middle school, then I don’t see why any grown adult in this country can’t do the same if they really discipline themselves to do so. But if someone refuses to change and keeps overdrawing regularly then yes, the RushCard might beat a bank account under some circumstances.
I have to say it is a scam all over the web you can find out how they are allegedly ripping people off and taking peoples money…I have been dealing with them for almost a month now trying to get my money deposited to my card from paypal…they have no problem taking the money from the paypal verifying process but when you try to actually put your money onto the card they will not do it. They say there is a problem and to contact customer service. When you do that they want you to send your proof of identification and tell you it will take up to 2 business days for your money to be posted and yet they still don’t post it…Then they want to run you in the same circle over and over again…If you are gonna use them be ready to run endless circles and to have to contact BBB to get your money back
did you ever get your money!!!!
when i first join rushcard, they was rippin me off. the first month., my account was hit ($37)..,the second month it was hit ($35)..now, i’m on a fixed income and i know where my money is goin? with them they couldn’t tell me nothin but its not in the systems.,i just cancelled my first card and now catchin hell with the second card.,they wont transfer my cash ($135.28) to my new card, then they ask security questions only they know the answer to, its not right they block the card. i just got my new card unblocked and it haven’t even been activated yet! what the hell? I’m just catchin the run around and i want out of RUSHCARD.COM.. i’m way to poor to be givin away free money. then they hit me every month with a $9.95 card fee, my friend isn’t hit with any fees like that, why me?
Did you get your problem resolved?