Malls around the country are getting on the American Express bandwagon. They
offer a Gift Card that can only be used for the amount of the card. For
example, if a $250 card is purchased, then when that amount is gone, the card
becomes obsolete. AE offers the cards in values of $25 to $500. The good part
is there are no fees to purchase or use. They can come personalized or
standard. Replacement can also happen, unlike most gift cards. For a gift this
is a great card, but not one for regular day to day use.
Do the Math
Prepaid are great for the person who wants to keep their budget in line or
who has bad credit. They are convenient for shopping, address verification, and
other uses, but they do not help a person establish credit. Fees associated
with the cards can be unreasonable, especially customer service calls.
The most reasonable seems to be the card offered by Western Union,
while Greendotonline seems to have too many fees for standard card usage.
Rushcard is harsh with the $1 fees, but they do give it back, so they have a
plus. Visa Buxx is a good tool if a parent wants to teach their teen about
using credit cards without running up debt. They had reasonable fees associated
with the card. All the cards were attached to reputable banks, which should be
a criterion in selecting a card.
There are lots of prepaid credit cards for customers to choose from. Much of
the choice is in what the cardholder wants to do with the card. Finally, one
should actually consider the cost to use the card with loading, transaction,
and live customer service fees.