Credit Cards Blog

Finance Blogs » Credit Cards » Kardashian Prepaid MasterCard pulled from market

Kardashian Prepaid MasterCard pulled from market

By Lucy Lazarony · Bankrate.com
Wednesday, December 1, 2010
Posted: 11 am ET

After being slammed by critics for its high fees, the Kardashian Kard Prepaid MasterCard has been pulled from the market.

Those fees included a $1.50 fee for ATM withdrawals, a dollar fee if the ATM withdrawal or point-of-sale transaction was declined, and a $9.95 fee to replace a lost or stolen card.  And canceling the card would have cost you $6.

With the Kardashian Kard, which was actually a very pricey prepaid debit card rather than a credit card, consumers had the choice of either a six-month plan that would have cost $59.95 or a 12-month plan the would have cost $99.95.  The cost of each plan included a purchase fee, minimum deposit and monthly fee for the plan period.

A prepaid debit card can be used to make purchases and payments and its spending is limited to the balance of the card. Consumers may qualify for prepaid debit cards even if they have bad credit, though most prepaid cards don't help to build credit history at the three major credit-reporting agencies.

A prepaid debit card may be a convenient if costly payment vehicle for folks living without traditional banking accounts, for travelers and for parents shelling out allowances for teens.

But as the debunked Kardashian Kard proves, it's important to watch out for fees.

Fees on prepaid debit cards vary widely. And you'll need to shop carefully when considering a prepaid debit card.

Typical fees on prepaid debit cards include fees for activating the card and reloading value on the card.  But you'll also want to watch out for fees for checking your balance, calling customer service and using the card to withdraw cash at an ATM.

What kind of monthly fee does a prepaid debit card charge and will that fee be waived if you sign up for direct deposit?

Be sure to read all the fine print detailing a prepaid debit card's various fees before signing up for a card.

If you're interested in establishing or re-establishing your credit, a secured card may be a good choice for you.

With a secured card, you make a deposit with the card issuer and you are able to make charges with the card up to the amount of the deposit.  A secured card works like any other credit card.

If you handle the account well and the issuer reports to the three main consumer reporting agencies, you'll build credit.  And you may be able to upgrade to an unsecured credit card from the card issuer within 18 months.

«
»
Bankrate wants to hear from you and encourages comments. We ask that you stay on topic, respect other people's opinions, and avoid profanity, offensive statements, and illegal content. Please keep in mind that we reserve the right to (but are not obligated to) edit or delete your comments. Please avoid posting private or confidential information, and also keep in mind that anything you post may be disclosed, published, transmitted or reused.

By submitting a post, you agree to be bound by Bankrate's terms of use. Please refer to Bankrate's privacy policy for more information regarding Bankrate's privacy practices.
4 Comments
disgusted222
December 01, 2010 at 2:15 pm

You can guarantee the Kardashian's were the reason for the high fees, They don't do anything without getting paid very well for it. I read where a vibrator company offered Khloe a million dollars to endorse their product but because these people are the pillars of society with totally unblemished records as saints they declined-isn't that priceless.
These people act dumb so people are caught off guard but they are smart people who are taking advantage of the world with what I'm not sure. I guess that is their talent!

Larz Blackman
December 01, 2010 at 12:11 pm

Who are those Kooks? "We're beautiful, now give us your money."