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Tuesday, February 12, 2008

Important Fees Associated With Prepaid Cards

prepaid credit cards are becoming increasingly popular amongst consumer to improve financial discipline and credit history. Though, a prepaid card doesn't come a with late penalty because there are no repayments to be made, but there are various other fees associated with them, which increase the ownership costs. Having a good knowledge about these fees helps the consumer make an informed decision. Listed below are some important fees levied on prepaid cards.

Annual Fees

Charged by the prepaid card issuing company for usage of the prepaid card on an annual basis.

Monthly fees

Charge by the prepaid card issuing company for usage of the prepaid card on monthly basis.

customer service fees

Charged by the prepaid card company for providing initial customer service to issue the prepaid card.

activation Fees

This fees is charged by the prepaid card issuing company for activating the prepaid card

Fees per purchase

Every purchase done by your prepaid card can attract a fee per purchase. Some prepaid card companies levy this fees to increase their revenue.

ATM Cash withdrawal fees

Whenever you withdraw money from ATM's prepaid card company slaps ATM cash withdrawal fees to your account.

Inactivity fees

This fees is charged when your prepaid credit card is not used for a specified period of time.

Now, you have an idea of the most important fees associated with prepaid cards. To use this information you can compare various prepaid cards and fees associated with them. Comparing this way, you will be able to lower your total ownership cost of prepaid cards.

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