I saw an advertisement for fee free prepaid card. Is there a catch somewhere?

Answered on August 04, 2010
Updated on August 04, 2010
The content is accurate at the time of publication and is subject to change.
James Williams James Williams
Prepaid debit cards generally are less expensive than credit cards, yet they do have fees. There may be an activation or set-up fee, monthly maintenance, purchase or ATM transaction fees, online or paper statement fees, account cancellation, card replacement and other fees, like for using a certain service or tool. Fee free or free card in advertisement can usually mean that the card charges no activation fee, free transactions or no monthly fee, but their cost might be built into other fees, like that on direct deposit. To find out for sure, you should read terms and conditions of cardholder agreement. Prepaid debit cards are so diverse and offer so many options, you are sure to find one that offers best low or no fees on features important to you.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.

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