2013 Insight Visa Card: Are The Fees Too High?

Discuss the Visa & MasterCard payment networks as well as cards that operate through them.
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doug41303
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2013 Insight Visa Card: Are The Fees Too High?

Postby doug41303 » Tue Sep 24, 2013 12:02 pm

My employer is encouraging me to apply for Insight Visa. It is a prepaid card and he says with it I can get my money 1-3 days faster than without. My concerns are if the fees are worth it. This is their website but I didn't see where on there the list of the fees is.

My second question is with prepaid cards, do you have the same rights as with a bank account. I want to make sure my funds are FDIC protected and are protected against fraudulent transactions. I have heard so many horror stories about other prepaid debit cards that I want to make sure they are a good decision for me.

My last question is if any credit cards are out there that accept direct deposits from your employer because if there are I would love to get one instead to build credit.

Thanks


Obi-dan
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Postby Obi-dan » Tue Sep 24, 2013 2:08 pm

doug41303 wrote:
My second question is with prepaid cards, do you have the same rights as with a bank account. I want to make sure my funds are FDIC protected and are protected against fraudulent transactions. I have heard so many horror stories about other prepaid debit cards that I want to make sure they are a good decision for me.


I copied this from a FAQ on the FDIC website:

The funds linked to a prepaid card may or may not be FDIC-insured. If an employer, government agency or other organization places money with an insured institution to hold for use in connection with consumers’ prepaid cards, and the bank holding the money fails, the funds will be considered deposits of the cardholders (as opposed to deposits of the organization) if certain specific requirements have been followed. One requirement is that the account must be set up so that the organization is documented as acting as the custodian of the funds, on behalf of the consumer cardholders, rather than as the owner of the funds. If the requirements for pass-through deposit insurance have been met, the individual consumer cardholder will be protected by deposit insurance up to applicable limits.
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Midori
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Postby Midori » Tue Sep 24, 2013 3:02 pm

I found this page from last October which has a table that might be helpful if the information is still current. There seems to be two different plans: a monthly plan (pricing changes with and without direct deposit) and a pay-as-you-go plan.

So, according to it, if I'm paying as I go, it costs me $2 per transaction to use their card. If I have a monthly plan (which carries a $3.50 or $7.95/month fee), it only costs me $1 each time I use my card. It doesn't cost me to load direct deposit, but if I top it off with an electronic check, it costs me $3.50 if I add on less than $1000, and it costs me $6 if I load on more than $1000. ATM withdrawals are $2.50, and if I get over-the-counter cash, that's up to 3% of the transaction, with a $5 minimum.

In general, I don't think prepaid cards help you build credit at all.

I know a lot of employers have been trying to move away from physical paychecks to direct deposit/prepaid cards for at least the last 10, 15 years. Rather than eating all the fees that come with a prepaid debit card, is there anything keeping you from establishing an account (no fees, free checks, etc, etc, etc) at a local credit union or bank, getting your direct deposit funneled through that, picking up a credit card, run all your spending through it, and paying in full every month?



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