Pre-Paid or Rechargeable Visa and Master Card Debt Cards

Because I live in Fresno Bankruptcy clients of mine see this concept has some real exciting possibilities. NOTE: I have no personal experience with this company or its products – so I offer no warranty or opinion. It appears they are a new company – 2006. As with anything you read and don’t understand do your own research. However, as you’ll read below you see the possibilities.

We have all heard of Visa, Mater Card and American Express gift cards – similar to gift cards from stores like the GAP, Target, or any number of different stores. They simply replaced the old fashion gift certificates. You could easily purchase them for cash at supermarkets, department stores, 7-11’s, drug stores, Walmart and even Costco. I given them as gifts, but they had no use in the FRESH START System because they were just an alternative to cash (with a service charge).

I recently became familiar with pre-paid Master Card and Visa Cards issued by AccountNow – the cards are issued by MetaBank and licensed by Visa USA, Inc. and Master Card.

The concept is simple. They offer re-loadable (pre-paid VISA or MasterCard debit card) that is just like a regular VISA or MasterCard debit card, you can use it to pay bills (with the card or on-line), rent hotel room and cars and accepted wherever VISA, MasterCard and debit cards are accepted.

Here are some the benefits:

1. Although you must apply for it, except for some minor exceptions (see terms and conditions) there is a 100% guarantee approval – even if you’re in Chex Systems and have terrible credit. This is not a secured VISA or MasterCard – its strictly a debit card similar to those issued by banks.

2. No cost direct deposit; just like a real checking account. You can even have your tax refund deposited into the account.

3. Free on-line bill pay.

4. No minimum or overdraft fees.

5. Completely re-loadable. “Re-loadable” means that you can add money to it at anytime. The company advertises the card as a “bank that you can carry around in your wallet.”The program offers several different ways to “re-load” the card – either through direct deposit from your employer (tax refunds included) or you can use cash at a store location that offers:

• MoneyGram
• Western Union
• Visa ReadyLink
• Green Dot
• Check Center (California Only)

I’m familiar with Western Union and MoneyGram, but the other services are unknown to me. However, review of the website shows that these “re-load” services are available at Wal-Mart, Albertsons, CVS Pharmacy, Rite Aid, UPS Stores, Kroger, Winn Dixie, Safeway, Greyhound, 7-11, Vons, Randall’s, Pavilions, Longs Drugs, K-Mart and others. As I’m sitting at my computer, I can think of 4 or 5 of these businesses that are closer or very close to my own bank! As Adam Sandler says: “that’s not to shabby.”

If you use a store location to load money onto your card with cash the store will usually charge a re-charging fee. The cost is different at each location. AccountNow does not charge to load cash, just the store location. If you use cash, the money is available the same day and if you have your paycheck direct deposited its available the same day. According to the company website, you can get deposit confirmation and balance information using their free SMS Text Alert service. They also provide on-line account statements.

Here’s the website for this company. Again, do your own research as I have yet to do business with them. I’m looking into opening an account so I can become more familiar with their services. Contact them here: www.accountnowvisa.com.

Creating a Savings Account Without A Savings Account Without a Bank or Credit Union

The idea is simple. We are coloring outside the lines with this strategy, but when you need to establish an emergency savings fund and the traditional banking system is closed we need to get creative.

Open two pre-paid debit accounts. The first account is your primary use account: money is deposited and bills paid. The second account acts as your emergency savings account. When you open the second pre-paid debit account make sure you either hide or destroy the debit card (you can always get a new card for a small charge), but I want you to have as little access as possible – eliminate the temptation to spend this money. On payday, go on-line and immediately “pay yourself first” – deposit money into your second pre-paid debit card account. The drawback is obvious – no interest paid on the account, but what does it matter in the early stages of survival mode. You’re building a nest egg for emergencies. The same emergency fund building strategies apply: pay yourself first, dresser money, second job or side business.

Disclaimer

Fresno-Bankruptcy-Lawfirm.com is owned by the Law Offices of Jeffery D. Rowe. We are a debt relief agency. We help people file for bankruptcy relief under the Federal  Bankruptcy Code (Title 11 of the United States Code). If you would like to discuss your situation in further detail, please call our offices at: (559) 228-1500 to schedule a consultation.