There are many factors that influence your decision as you select the right prepaid debit card company. And one of those many factors is the fee. As you must know, there are different types of fees that are charged on debit cards. Some of them are obvious fees that the bank tells you. And then there are certain ‘hidden fees’. You must watch out for both kinds of fees. Let’s discuss some of the fees that will come as you use your prepay debit card.

Charges on Negative Balance
Though you can’t overdraw money from a prepaid debit account, but there are some rare conditions (like some emergencies) under which you can overdraw a certain amount of money from your account. When this happens, you will land up with negative balance, and there will be charges on them.

Decline Charges
The transaction might be declined if you attempt to overdraw money from your account. In most cases, if you do that, the transaction will be declined and they will charge you decline fees. Thus, even though you did not overdraw your account, but you did try to do it, so you will be penalized.

Daily limits
And then there are cards that put daily limit on the amount of money that you can withdraw. If you withdraw an amount that is more than the daily limit, then your transaction will be declined.

ATM and Cash Back
Some cards charge a small amount of fee when you withdraw money from the ATM, so instead of that, you can go to a store, and save some fee that would be charged by the ATM.

Direct Deposit
Most prepaid debit cards charge no fees on direct deposit, so just ask from your bank about the options. Since there might be any charges, it is best to confirm it from your bank.

Hold at hotel bookings, car rentals, restaurants and gas pumps
Prepaid debit card holders might be disappointed to find that there is a hold on their cards at restaurants, gas stations, hotel bookings and car rentals. Then you must also have a minimum balance in your card if you want to carry out a certain transaction. So it may be the case that you might have $50 in your card, but you may be declined service of $20 at a gas station.

There are several other charges apart from these fees. When you apply for the prepaid card, make sure you get to know about their monthly or annual charges. Then there are some other charges like if you withdraw money from some other bank’s ATM. Though you can use your prepaid debit card on the ATM of any bank, but there might be charges on transactions.

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