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5 downsides to prepaid debit cards

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Prepaid debit card terms -- and even the cards themselves -- can come and go.

Take the Kardashian Prepaid MasterCard, which was pulled from the market in November. The card carried a picture of the glam trio of sisters. But this celebrity plastic was packed with hidden fees and weak consumer protections, says Consumers Union. Fees included $1.50 for ATM withdrawals, $1 to check balances and even $6 to cancel an account. But that's not all. A six-month plan cost $59.95; for 12 months, $99.95.

"This is a shape-shifting market," Martindale says. "Fees keep changing. And the Kardashian card was off the market after bad press."

Consumers must stay on top of prepaid debit card term changes, too, she says.


 

 

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