Thursday, September 15, 2011
Evolution Finance Inc.'s credit card comparison website CardHub.com conducted research into the fees that prepaid card providers charge consumers. CardHub.com concluded that NetSpend Holdings Inc. cards were the most expensive from a fee standpoint, while Green Dot Corp. and American Express Co. cards were the least expensive.
In Prepaid Cards Report – 2011, CardHub.com compared the cards as alternatives to traditional checking accounts and as tools for parents to provide allowances to children. Under that criteria, Green Dot offered cards that were rated least expensive in both categories. AmEx was also cited for being least expensive as an electronic allowance tool. However, NetSpend was considered most expensive in both categories.
Tabulating monthly costs for the cards of various fees, such as activation, maintenance and ATM withdrawal fees, CardHub found the costs for a Green Dot card were $0 (alternative checking account) and $5.95 (allowance) while a NetSpend card charged $24.32 and $19.61 respectively. The American Express card was not rated in the alternative checking account category, but charged $6.66 per month as an allowance alternative.
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