CFA: Prepaid Debit Card Dangers

EAST PROVIDENCE, R.I. (WPRI) - Pre-paid debit cards are becoming increasingly popular because of their convenience, but be careful: some come loaded with fees.

People who might not have or want a bank account might find themselves using pre-paid debit cards.  All you have to do is load up the card with value, then use it just like a normal debit card online or in-store.

But Problem Solver Susan Hogan has uncovered that some of these cards have fees that will eat into your balance.

The fees themselves are usually modest, but they add up quickly.  They include fees for opening the card, fees for loading the card, fees for making ATM withdrawls, or even monthly or yearly fees for just having the card.

If you use a pre-paid debit card, be aware of what your fees are, what triggers them, and how you might avoid them.  Think ahead about what services you want out of the card - things like getting a paper statement or being able to call customer service - and make sure that if you want them, you're not being charged for them.

Banking experts say as the economy continues to struggle, these cards will continue to grow in popularity.  If you use them, be careful, or those fees might add up.