Being a member of exclusive groups is nothing new for Magic Johnson: The former Laker famously played for America’s Dream Team in the Olympics, was imortalized in the basketball Hall of Fame, and has been an NBA MVP.Now with his very own Magic Prepaid MasterCard, Johnson is joining the likes of a different club that includes Lil’ Wayne, George Lopez and Suze Orman.
To determine whether the card is worth it, CardHub broke down the card’s fees by comparing it to some of the best cards in the prepaid card industry. Here’s how the Magic card stacks up, based on three ways prepaid cards are generally used:
Replacing a checking account: For anyone looking for a card to use as a checking account replacement, the Magic card isn’t a good fit, said Card Hub. The reason: There’s no ability to pay bills online, and old-school billers could not accept plastic. The better bet is GreenDot Gold Prepaid Visa Card, a card that’s free to use when you load at least $1,000 on it per month and take out cash from its in-network ATMs.
Teaching children financial literacy: The Magic card charges a monthly fee of $9.61 if parents wish to use the card to give their kids an allowance. This fee isn’t terrible, but Suze Orman’s card offers the same service for just $3 a month.
Cashing checks: The Magic card won’t be challenging the Chase Liquid Card as the best check cashing replacement on the market, said Card Hub. You can’t load a check directly onto the Magic card, so you’d have to cash the check first, then pay to load funds using a MoneyPak. CardHub recommends going with Chase Liquid Card instead to avoid the hassle.
There are two perks to the card, however. The first two ATM withdrawals per month are free, which could save customers $5 per month. Plus, there are also no purchase fees, including those for PIN and signature purchases.