Prepaid cards have appeal beyond those who don’t have bank accounts and prepaid card companies are using celebrities to pitch them to a wide audience, according to an article published by Reuters. Although the article reports the positive experience of one prepaid card holder, it spends a long time cautioning readers about the potential pitfalls of prepaid cards.
The experience proved so positive, Williams plans to continue using the card, even though the charges for using prepaid cards can far exceed the costs associated with using credit cards, checking accounts or other forms of payment.
Indeed, experts caution that these cards aren’t right for everyone and that consumers need to look past the vigorous marketing pushes by prepaid card firms that use celebrity faces or folksy, anti-Wall Street messages to lure new, middle-class customers.
As the opening anecdote of this article points out, readers should be cautious of any comparison based solely on price, because other values also factor into the decision to use a prepaid card. These include factors such as the ability to get a bank account or credit card, access to reload points or surcharge-free ATMs, and the ability to segregate funds.
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