By Amanda Handley, http://prepaiddebitcards.net

Debit card fees can be very confusing. When it comes to bank issued debit cards and prepaid credit cards, it is important to understand all of the possible fees to avoid spending more money than is absolutely necessary. Choosing the right card can help to eliminate many of these fees as well.
There may be an activation fee for a debit card. This is a fee that the bank or financial institution offers for using the card the very first time. Sometimes this is the only time a fee is charged, other times the fee occurs on an annual basis.

There may also be monthly fees associated with a debit or prepaid debit card. These fees are not like credit card fees in that there is no difference in what you pay no matter what the balance is. Usually there are monthly fees based upon different features that are provided with the card, such as online banking or special alerts that can be programmed to a cell phone.

Some banks will charge an ATM usage fee as well. This is very important to understand because it could mean the difference of being able to afford to take cash out at an ATM machine or not. This can also be in addition to the fees that the actual ATM machine charges. If there is a fee involved with using the ATM machine, it will reduce the balance on a debit card drastically if used often enough.

Other fees include how you plan on funding the card. In many cases, prepaid debit cards and even traditional bank debit cards offer a number of different ways to add money to the card. This can include transfers from other accounts, going into the bank or other service locations to put cash on the card, direct deposit and even from PayPal. Some of these methods will have different fees associated with them, making one option more affordable than another.

Your bank may also charge you a replacement card fee. If you have lost your card or it breaks, you will need to get another card in order to continue accessing your funds. In order to do so, you may need to pay a replacement card fee. This is not the case with all debit cards, however it is a fee that you should make yourself aware of.

Another type of fee that debit cards often feature is an overdraft charge. This is not available on all cards, however those that offer some sort of overdraft to ensure that all charges go through often include some sort of charge for this service. If you spend more than what’s on your card and the overdraft is activated, you may be paying a flat fee or a percentage of what you went over.

It’s important to understand all of the debit card fees you could be charged. This way you can find the most effective card based upon your needs.

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