I just got back from a two week trip to Switzerland with my mom. She doesn't have an ATM / debit card, just a checkbook; at home she uses her credit cards as much as possible. Before the trip I told her to get an ATM card to get cash while on the trip. Somehow the bank didn't process the request and when we figured it out (she had been away on a different trip) it was too late to get one. The bank suggested a prepaid card and waived the setup fee (which was only $3.95 anyway) because of the mixup. As they explained it to me, there were no other transaction charges or other fees. "Okay," I thought to myself, "we'll see what the exchange rates are when she gets cash." Well, she used it twice to get cash at an ATM and the rates were pretty much exactly what I got with my credit-union-issued ATM card, now that we are home and have checked out the transactions. Both are an expected point or so higher than the interbank rate for the time period. So I guess the moral of my story is that as far as I can tell there was no huge cost disadvantage to my mom's pre-loaded card relative to my ATM card. For the record, it was a Key Possibilities card but this shouldn't be construed as an ad for Key Bank.
Posted by
Bloomington, IL, USA
9371 posts
But as with any other fees, they can vary widely from bank to bank. It's important to check with your bank or credit union to find out what their fees are.
Posted by
Lakewood, Colorado
19272 posts
Ads are bad; endorsement are often good. If you've really found a prepaid card that has decent rates, that is good to know, but it doesn't mean the other prepaid cards are good. I recall some (quite a few, maybe) years ago I checked out the prepaid card that Key Bank had then (Visa, I think) and found out, after much subterfuge, that the rates were not very good.
Posted by
Tipton, Iowa
332 posts
I found this link to Key Possibilities MasterCard gift card: https://www.key.com/html/gift-card-faq.html# Fees are $3.95 issuance, $1.00 ATM Withdrawal / Cash Advance Fee, $0.25 ATM Balance Inquiry, $9.95 Refund Processing Fee, $2.50 Monthly Maintenance Fee after 12 months of inactivity. There is no mention of foreign exchange fees. It can not be used for pay at the pump gas purchases. Unlike many gift cards, it allows ATM withdrawals.
Posted by
Tipton, Iowa
332 posts
A Key Bank customer service representative said that the foreign currency fee is 1%. The gift card is only available at Key Bank branches. Judicious use of a $1000 card for 3 ATM withdrawals in Europe should cost less than 2%. Use up the last few dollars on the card with a point of sale transaction in the US. This card is better than many regular bank ATM cards that charge up to 3% plus as much as $5. Now if it were just available with chip and pin...
Posted by
OP
Seattle
77 posts
@Chip, that is for cards purchased prior to 8/19/2010. I checked out the transaction fees when they offered the card to my mom, and the only fee for cards now is the $3.95 issuance fee. Definitely different banks might have different rates. I merely offer this information to show that prepaid cards don't necessarily deserve the blanket condemnation they are sometimes given here.