By Roldan A. Hayes
Although more and more people have become interested in prepaid credit cards over the recent years, it cannot be denied that it has also gained a great number of critics and skeptics. Negative views about prepaid cards can primarily be attributed to the fact that these cards involve quite a number of fees or charges. Little do they know that there are ways to avoid paying all these fees. You want to know how?
How to Avoid Prepaid Credit Card Fees
Choose a card which requires no activation fee. Although most prepaid charge cards come with an activation fee, there are several cards which do not require any amount of money for activation. However, the activation fee is not the most important fee to avoid; given that it is only a one-time charge and is usually only very minimal. What other things can you do?
Choose to do signature transactions over PIN transactions. Most prepaid cards do not charge a fee for signature or “debit” transactions but do impose fees for PIN or “credit” transactions. So, when you use your card, make sure that you make your purchase through debit and not credit. How about withdrawal fees?
Avoid ATM withdrawals. Withdrawing money from an ATM machine using your prepaid card may sound very convenient and enticing. But, you should avoid doing this; especially if your card charges you for every withdrawal or ATM transaction you make. Instead, you can choose to get cash from authorized stores and outlets which do not charge you extra for a withdrawal transaction with them. What about fees for asking assistance from customer service?
Don’t choose a prepaid card that charges for customer service. There is nothing more offensive than having to pay for a fee just to obtain assistance from a customer service representative of your credit card company. This just shows how unwilling a company is in offering help to their clients. Now, what is the best way to avoid prepaid card fees?
Read and understand terms and conditions properly. The real key to avoid getting burned by prepaid charge card fees is to read the fine print carefully. Be aware of the fees that your prepaid card company imposes and find a way to work around things like the tips stated above. So why again, should I get a prepaid credit card?
Prepaid cards have become a sensation for no reason-they are convenient and secured. However, like most things, they have their own drawbacks; and one of which is the fees that most of them come with. But if you are wise and careful in using your card, you will be able to enjoy the convenience they offer and these prepaid credit card fees won’t be a problem to you.