Credit Card Prepaid: Worth Getting A Prepaid Mango MasterCard?

Credit card prepaid is really something of a misnomer; technically these are prepaid debit card services.

I read with interest a recent review of the Mango prepaid MasterCard. You load money onto the card beforehand and can then use it like a debit card anywhere MasterCard is accepted.

Except you don't need to open a new checking account or incur any credit checks. There is no monthly fee when you are loading more than $500 per month onto this prepaid card. And it is an attractive card; it does not look cheesy like a gift card or unemployment benefits card or anything.

Personally, I think it's a cool service for those who simply are unable to open a bank account -- either because of a negative financial past or some other complications (what exactly, though? Opening a bank account is NOT hard).

But if you can get a real checking account somewhere, I would probably go that route before getting a so-called credit card prepaid plan. Cards are not the same as cell phones. A prepaid plan doesn't seem to offer much in the way of rational benefits or added value, whereas rewards debit cards from a bank DO offer you something extra. 

Comments

[Joey Sullivan]

Here’s my take on Prepaid Debit Cards (payroll cards) based on my own experience:

I used to work at a large national restaurant chain and our card was pretty bad. But, from what I hear, it was typical because most cards either have a monthly fee or pretty limited as to the free items. I have worked at Starbucks for about 7 months now and they allow us to have a card called the Money Manager Card. The choice was pretty simple because there are no monthly fees, I can use it on their network (allpoint atms) free at all times, never any fees to buy things (signing or using my PIN and getting cash back if I want…all without a fee or surcharge), no overdraft. Let’s just say I haven’t paid a fee in the entire time I’ve had the card. It’s pretty simple to use it at no charge and I really don’t have to tip-toe around any limited free items like most other cards I have seen have.

Oh, and don’t lose most payroll cards! If you do, it’ll cost you $$ even to get the replacement sent by the post office. My new card give free replacements when delivered by the post office all of the time. Or, if I want, I can get it delivered by Fedex for $10. Pretty reasonable as I sent something by Fedex a month ago and paid $14!

My point is, if an employer is set on offering its employees a Paycard, it should do both the company and its employees and offer a Paycard that truly costs $0 to use. When I say $0, I mean $0. Not just $0 if you jump through certain hoops, etc.

I should state that Walmart has something that is similar sounding to Money Manager Card. I think it is the Money Card or something like that. That card is definitely not the same.

I did a quick Google search on Money Card when investigating the Starbucks offering and mistakenly clicked on a link to a Money Card “problem” page where people complained about it. Then, I realized that “Money Card” is not “Money Manager Card”.

Thought I would let you know so you don’t make the same mistake and get yourself a card that will end up costing you $$$$.