nFinanSe Prepaid Discover Card Review

All about Discover & Diners Club - talk about their credit card deals such as the More, Miles, Escape, and others.
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flash007
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nFinanSe Prepaid Discover Card Review

Postby flash007 » Thu Nov 18, 2010 4:39 am

I saw something on here asking about a Discover debit card, I'm not sure if the prepaid ones are considered debit or credit and this was the first I've heard of one. My employer screwed up somehow and one of my pay stubs came with a nFinanSe Prepaid Discover Card. They don't couldn't explain to me how the mistake happened because they don't do that unless someone requests their paycheck be direct deposited to a specific card and it's not even my employer's default card if you don't supply a bank account for direct deposit.

Here's the deal, I had to activate the card, set up an online account, then discovered my check was never sent to the card which came in my pay envelope with documentation about the card. My paycheck was sent directly to my local bank where it should have been. Now the question is, I didn't have to activate the card but didn't know I didn't have to activate the card. Online it shows I have a $0 balance. Do I need to do something to make sure the card gets canceled or do I just throw it away? My employer wants me to bring it in so he can investigate how it happened. is that advisable? Who knows who's hands it could fall into if I take it in. Are empty prepaid cards a security risk like credit or debit cards are?

Oh, the card came with my name on it and the welcome letter that came with it had my correct address on it. I'm almost curious if a merchant would even accept it or not as it doesn't look like any discover card I've ever seen before.


munsterman
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Postby munsterman » Fri Nov 19, 2010 3:14 pm

I would not give the card back. I don't know enough about prepaid credit cards from Discover to know if a credit check is done but if it was I would be pissed off majorly at your employer.

flash007
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Postby flash007 » Fri Nov 19, 2010 11:31 pm

The way it worked, my employer switched over from issuing paper checks to direct deposit. Having some people wanting to leave early and run to the check cashing place has been a problem, so everyone was notified they had several weeks to set up some sort of account where their checks could be deposited to. They gave us the option of using a local bank, or they had applications for several online accounts or several prepaid cards if we didn't qualify for anything else. We were told if we already had a bank account or a prepaid card, all we had to do was provide accounting with the information.

Where it gets sticky, we have some people who don't have a bank account and don't like prepaid cards, they would just rather be issued paper checks. We had some that just went downtown and either got a Greendot card or a Walm*rt card. Then it was announced if we didn't hurry up and provide the requested information, the company would pick a card for us and that's what our next check would be on. I guess I had a few comments about a Discover debit card being on the list for employees to pick from.

What a lawyer said is we can't be required to take a card that charges fees to get our money. When you take into account one of our employees pays $4 each week to have his check cashed, and if you end up leaving work early or driving, it costs even more. Nobody makes you pay a fee to cash your check, you choose to pay a fee to cash your check. You could direct deposit to a local bank account and avoid all fees. Buying money orders to pay your bills, that's another expense. All of the cards we were offered are much cheaper than that and you can work a couple extra hours, then get on the computer when you get home and transfer the money where you need it, or get cash from an ATM. Now if you find the option you picked is charging unsuspecting fees, you are free to pick another option. Of course, my employer chose not to sponsor a specific card but rather let each employee pick which option they wanted.

I think someone in accounting ordered the card for me to send me a message, but everyone denies it and claims it was an accident. None of my paychecks were ever sent to the card, they don't do a credit check when issuing the card, but someone had to put in my SS#, then likely they used my address at work to have it sent there. It just shook me up when I saw it because I thought my paycheck was sent to the card, like it was intended to do, but the card is still showing a $0 balance and my last check was deposited to my chosen local bank account. I was given the card and all documentation, so all accounting did was forward the card to me after it was issued. I'm thinking it was still sealed when I got it, but I didn't think to save the envelope it was in at the time.

Since all you need is an address, phone# and SS# with a matching age, most everyone knows my home address and phone#. They could have slipped in almost any SS# with matching age.

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Mogul of Pineapples
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Postby Mogul of Pineapples » Sat Nov 20, 2010 3:14 pm

I wasn't aware the a Social Security was needed for a prepaid debit card, are you sure that's accurate?

I wouldn't expect for alternative paycheck methods like that to be popular in Nebraska. Where I live in California the employers that hire illegal immigrants do use them but other than that, I hardly hear that practice which is I am surprised to hear about it in NE being that there isn't much of an immigrant problem there.

Fee based check cashing is nothing but wasting money. I have a friend that despite having a bank account, cashes all his checks at a conveinance store. That is like giving yourself a 2% paycut. With $35,000 in checks cashed per year that would be $700. I can tell you're smart enough to not fall for that ripoff but why do you co-workers do it?
Disclosure: I am a moderator/paid staff of this site, which does have advertising relationships with some credit cards that are discussed and linked to. Regardless, anything I say is my honest opinion.

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flash007
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Postby flash007 » Mon Nov 22, 2010 3:38 am

I hate to say it, but we have plenty of illegal immigrants here in Nebraska. It's so bad, prepaid cell phones have become a smash hit flying off the shelf. Employers are thrilled when they can hire someone for minimum wage to sweep the floor. Someone I work with has never had a bank account, he goes to the check cashing then carries a roll of cash in his pocket and pays bills with money orders. He's not an immigrant, but his credit is so bad the bank won't open an account for him. He's pissed he has to take one of these cards because he doesn't want any plastic. We do have several people I know for sure don't speak any English so they don't understand and they are just given a card. From what I understand, Wal&art was one of the first major employers in the area to start it with their money card. Employees without a bank account get a Wal&art card! I have a friend who swears by Greendot for online purchases. A couple of times he kept getting re-billed and couldn't get something canceled, so he just used the money off the card and got a new card. Check cashing? There are places around her doing nothing but check cashing and payday advance loans -- it's a BIG business. My employer is tired of employees leaving early to cash their checks, so now your check is on your card. My employer thinks by allowing employees the option to move their direct deposit to their card of choice or bank account, it's fine.

jambone43068
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Postby jambone43068 » Thu Nov 25, 2010 9:20 pm

Huh. I didn't know there was prepaid Discover.

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Mogul of Pineapples
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Postby Mogul of Pineapples » Sun Nov 28, 2010 10:27 pm

flash007, what kind of jobs are the illegals taking in Nebraska? I could see agricultural jobs because that usually involves cash under the table, but if your employer has hired someone that doesn't even speak English and were given prepaid cards, I would say that is knowingly hiring an illegal. I would report them- it likely won't do any good but it's still should be done. Here in California those types of reports won't be investigated but in your state maybe it's different.

The argument that illegals don't take jobs that Americans is not valid and this is a perfect example. Here you are competing for your job against illegals.
Disclosure: I am a moderator/paid staff of this site, which does have advertising relationships with some credit cards that are discussed and linked to. Regardless, anything I say is my honest opinion.

Current Cards:
American Express: Blue Cash, Simply Cash Bank of America: WorldPoints Platinum Plus Chase: Amazon, British Airways, Cash Plus Rewards, Freedom, Ink Cash Citi: Thank You Premier, Dividend Platinum Select Discover: More
Primary Everyday Card: American Express Blue Cash
Primary Travel Card: Chase Sapphire Preferred

infomaniac
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Postby infomaniac » Mon Nov 29, 2010 3:46 pm

The prepaid card business is the latest trend in the industry and will continue to prosper so long as employers use them to aide in the employment of undocumented workers.

flash007
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Postby flash007 » Mon Nov 29, 2010 9:54 pm

What doesn't make sense is people who can't open a checking account can get a re-loadable prepaid visa card. (1) when there's regulation how much re loadable prepaid cards can charge and what they can charge fees on, the industry will become less profitable. (2) If proof of legal citizenship becomes required employers won't be able to use these for those workers that aren't legal.

The big news is how many people used prepaid and debit cards for their Black Friday and Cyber Monday shopping, Credit card usage is down, prepaid usage is up. What's really amazing is the people I'm finding out are using the prepaid cards, I just had someone tell me they went to prepaid cards because they thought the fees were a small price to pay to stay out of debt.

I'm thinking we have at least 5 meat packing plants in the area and they attract workers that don't even speak English. Construction crews now look to hire cheap help, we have a floor cleaning crew that cleans several local businesses and none of them speak any English. We have cattle feedlots, large farming operations, etc. Lots of small employers have started hiring them. It's crazy, but the illegals send word back to their friends about the jobs here and suddenly there's 50 more in town. We had someone come in to apply for a job, he had 3 driver's licenses showing he was born on 3 different days, 5 social security cards each with his name on them, 2 work permits, citizenship papers in 3 different names and I lost track after that. The boss worked out a deal somehow and they hired him. Of course there's a couple that have their legal work permits and still use these cards.

At any rate the latest figures show credit card usage is down and debit card usage is on the increase.

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Mogul of Pineapples
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Postby Mogul of Pineapples » Mon Dec 06, 2010 3:04 pm

flash007 wrote:(2) If proof of legal citizenship becomes required employers won't be able to use these for those workers that aren't legal.


According to the Patriot Act prepaid cards are required to verify the identity of every cardholder. Since a Social Security number is given and that passes the identity check, it either means that the illegals are using fully stolen identities (name, DOB and Social that all match) or they are providing a fictitious Social and name but the prepaid card issuer is not vetting the information to catch it. I'm guessing it's the latter going on.

Some states have very strict laws for not enforcing the Patriot law. I recall reading in Michigan the fine is $750,000 per occurance. If the feds wanted to this could be enforced with a crackdown on unverified prepaid cards to discourage this.

I just had someone tell me they went to prepaid cards because they thought the fees were a small price to pay to stay out of debt.


If someone truly has no self control then I would agree with that decision to stick with prepaid, although it's pathetic that's what it takes for some to live within their means.

We had someone come in to apply for a job, he had 3 driver's licenses showing he was born on 3 different days, 5 social security cards each with his name on them, 2 work permits, citizenship papers in 3 different names and I lost track after that. The boss worked out a deal somehow and they hired him.


I would report this in a heartbeat. That kind of fraud infuriates me. We have unemployed Americans that need jobs right now and giving them knowingly to illegal who don't pay taxes is plain wrong.
Disclosure: I am a moderator/paid staff of this site, which does have advertising relationships with some credit cards that are discussed and linked to. Regardless, anything I say is my honest opinion.

Current Cards:
American Express: Blue Cash, Simply Cash Bank of America: WorldPoints Platinum Plus Chase: Amazon, British Airways, Cash Plus Rewards, Freedom, Ink Cash Citi: Thank You Premier, Dividend Platinum Select Discover: More
Primary Everyday Card: American Express Blue Cash
Primary Travel Card: Chase Sapphire Preferred



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