A traditional bank account is not an option for all consumers. Some have suffered a bounced check or two or even multiple overdrafts with a traditional bank. This does cause you to be listed in ChexSystems, which does prevent the possibility of opening a traditional checking or savings account. This system is used to check every person’s banking and credit history. Until items are cleared in this system, accounts can’t be opened. There are alternatives for consumers that have experienced this, including obtaining a payday debit card.
Keep More of your Paycheck
Many users that are in ChexSystems utilize the services of check cashing facilities. While this may be convenient, some have high fees. Essentially, you’re losing money every time you walk in the door. Using a reloadable debit card, your fees are less as most only charge a single monthly fee and some waive that fee when regular direct deposits exceed $1,000 per month.
Use it Like a Bank Card
These debit cards allow direct deposit and you use them just as you would a traditional debit card. Users can easily make purchases online or in-store, use the card at a gas pump or withdraw money from an ATM. Users can also obtain cash back from debit purchases when shopping. Other uses include paying bills online, using the card at restaurants or using the card anywhere that you would typically use a debit card.
Avoid Non-Sufficient Funds Fees
While these are classified as prepaid debit cards, the institution does not allow users to overdraft their accounts. This prevents overdraft fees, account freezing and account closures due to multiple negative balances. With these accounts being web-based, users login to their accounts to manage their funds, check balances and view automatic payments. It is convenient and is a safer way of banking for those that have had rough patches with balancing checkbooks or multiple negative charges on a traditional bank account.
With this type of debit card being available to anyone, it helps younger consumers learn financial responsibility and budgeting. It also helps consumers carry less cash and suffer less of a financial loss in the event that a wallet or purse is stolen. A single call to customer service immediately freezes the account and prevents the card from being used. As with a traditional bank account, users can order additional cards for authorized persons on shared accounts too.
