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Banks nibbling and -- us to death.
Many of us have turned to what they call prepaid cards.
This may not be the answer we've been looking for let's ask John Alzheimer president consumer education -- -- credit dot com John great to see you again.
Yeah -- -- Tara appreciate it still this is the fastest growing plastic.
And the country right now everybody's getting these prepaid cards.
The what's the big attraction really.
While there's a lot of meat on -- -- -- prepaid card is becoming very very popular in the wake of the card act.
Because a lot of credit card issuers -- proactively discarding their customers.
Because they thought that they were too risky while these customers -- using plastic it's convenient to -- -- hearing around out the cash and they needed to go somewhere.
And -- market was still are a variety of small number of companies have started to create a -- a product called a prepaid debit -- -- -- stored value card.
Which is on fire right now it is the most pocket.
Yeah -- -- making it all sounds so good way to you know I look at the fees on these things.
Not impressed -- take a look at the -- are right.
Issued a car four bucks to fifteen.
An additional cargo wanna give one a mom five bucks an ATM transaction two dollars and fifty cents many -- John come on it's ten bucks a month -- maintenance.
A replacement after five bucks.
This is ridiculous I can't even believe -- like these things.
Not out and I -- you -- NASA -- I liked it or not exactly about that part I hate you think are -- they.
-- It's my money you're charging essentially an entry fee to get my own mind and I got here a lot of -- had -- not a lot of cast aspersions on anyone person or company in particular.
But I think people -- -- these cards are likely to be really really honest with -- there simply lightly there are far better options.
Alan van prepaid debit cards you know how -- raise your hand out here you have not be any sort of speeding charge on your credit union issued credit card.
Not a lot of people raised their hands right now.
They are infinitely better then cards issued by the big issuers and -- infinitely better than these types of prepaid cards because bear Bree.
So I think that if you do a little bit of shopping even just a cursory not a shopping around you can find a better option still maintain that unsecured line of credit which is infinitely more idol.
Bennett prepaid card which is locking up your money somewhere and still make out better on the back and -- -- feet.
Perspective so let's talk about what's really going on here OK I think what's really going on here.
Is that people like the branding they like the idea pulling out plastic out of there while it doesn't matter to them.
Who issued -- where it comes from or what it is or what the terms and conditions are.
They get that they're happy and they're being robbed blind at the same time.
I I think that is I think you hit the nail on the head these are jilted lovers they're gonna -- the next person I start -- And a prepaid card as the next person they've started to date locked in you know what's awesome about this market is it's filled -- Arguably.
Deceptive companies and you have a company like -- -- the white -- I who -- into this just black market essentially it's going to be so easy for a company like -- to do marry her Obama's market because they have such a good reputation.
The other players that this industry green dot -- stand mango with -- -- have you ever heard of these company -- Now they are -- not that many up and thankfully and you'll start seeing some bigger well known banks comment and actually cream off.
A lot of this business back into -- and so that's a credit cards and their own prepaid cards watch it.
What are the terms on the Amex -- -- Amex prepaid cards are they -- then what you typically -- Base model that feeds from all those other insurers not just mentioned and all the ones and I didn't mention a -- honest there's a lot of other app guys that are in -- -- They did charts and be forever Amex has their own -- processing payments.
So they can charge the issue or from the transaction a little bit more in the -- can be charged by some of these other on the -- it can be -- about some of these other.
Ish or so there's money to be made simply through that -- network which is not being subsidized -- -- cargo hold -- which is gonna make some much more competitive in some of these on -- company's.
Well -- -- so is it worth it to get the Amex card bottom line here give us the advice tell us what we need to now.
Now it's not and it's -- because I don't like and that Amex card.
-- I can't repay part it's a prepaid card it's your own Danny if you it's your own freaking money why am -- paying anybody to have access to my own money.
I would rather have a free access to somebody else's money management responsibly.
And I'd keep my young money -- -- are earning interest or credit union weren't earning interest which is a balance that I need at the consumer.
Love it thank you you're always terrific appreciate it -- I'm sure why there -- those.
Those are issuers and the next day or two why not you think about elevate them our thanks John.
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