Photo: Flickr / B Rosen
Consumers with prepaid debit cards spend an average of $300 per year in basic fees, according to a recent study by NerdWallet.Of all the charges the monthly one was the highest, reaching as much as $14.95 per month.
“There’s an overwhelming amount of information,” says Anisha Sekar, VP of Credit and Debit Products at NerdWallet. “(Card companies) need to put things in a more manageable fashion and restrict the number of fees that can be charged.”
For example, consumers are often blindsided by an inactivity fee that’s incurred when the card isn’t used for a certain amount of time, Sekar says.
Furthermore, some customers are charged extra just for calling customer service.
There isn’t much customers can do except consistently track their own habits and read all of the fine print, which is often very dense and hard to find, Sekar says.
To make it a little easier, NerdWallet created a comparison tool to help people find the best card for their lifestyle.
Sekar recommends the American Express Bluebird card. It charges a $1 reloading fee and a $2 ATM withdrawal fee. Its negative is its restrictive usage limits, making it a less than perfect bet for people who hope to use this as their main card, Sekar warns.
Plug your info into the tool to determine the best card for you.