1. Consumers Guide to Prepaid Cards Lori Scharmer, M.S., A.F.C., Interim Family Economics Specialist 2013 1

2. What is a prepaid card? Gift card Return credit card Rebate card Reloadable card 2

3. When may a prepaid card be useful? 3

4. Advantages of a Prepaid Card Safer than cash Convenient No credit check No overspending No bank account needed Direct deposit 4

5. Disadvantages of a Prepaid Card Loaded with fees Does not build credit history Limited regulations Limited protections 5

6. $ Prepaid cards will have FEES! Companies offering reloadable prepaid cards are in business to make a profit. That profit comes from the fees they charge the card users. Consumers should shop for cards with the lowest fees. Consumers should shop for cards with the lowest fees. 6

7. Shopping for a Prepaid Card Tips on choosing the best card: Will card be accepted everywhere? Minimum balance or reload limits? Daily cash withdrawal limit? Convenient ATMs for withdrawals? Fees charged? Protections offered? 7

8. $ Consumer Protection for Prepaid Cards Prepaid cards are a fairly new financial tool. Government regulations and protections for consumers still are being developed. Treat your prepaid card like cash; protect yourself from fraud or theft. 8

9. Managing a Prepaid Card ● Prevent unnecessary fees ● Use an app for monitoring ● Use online monitoring system ● Use online monitoring system Like any money account, reloadable cards need to be monitored. 9

10. $ Reloadable prepaid cards are just one more financial tool available to consumers. 10 You decide if and when a prepaid card will work for you and your money.

11. Thank you for coming. Please fill out our survey. More money information from The NDSU Extension Service at www.ag.ndsu.edu/money Lori Scharmer, M.S., A.F.C. Interim Extension Family Economic Specialist 11