Consumer reports takes closer look at prepaid features and fees

by TMG

by. Konrad Christensen

Consumer Reports recently reviewed 26 different prepaid cards and evaluated them based on four different factors. The cards Consumer Reports considered to be the best scored well in each of these four factors:

  1. Value — How much they cost to use.
  2. Convenience — Availability of in-network ATMs, bill pay features and how widely the card network brand is accepted.
  3. Safety — Whether funds are protected with FDIC deposit insurance.
  4. Clarity of Fees — How well fees are disclosed.

Highest ranked cards are those like the ATIRA suite of prepaid cards TMG’s clients issue. They have fewer fees and make it easier for consumers to avoid them, carry FDIC insurance for each cardholder, offer features comparable to traditional checking accounts and do a better job of disclosing fees.

Not surprisingly, the worst prepaid cards reviewed scored poorly in at least one, and sometimes several, of the above categories. All of the lowest ranked cards have “high, unavoidable fees, including activation and monthly fees.” Additionally, the lower scoring cards fail to make their fees clear and easy for consumers to access and understand.

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