Wal-Mart cuts its prepaid MoneyCard fees
By Seamus McAfee | Published: February 24, 2009
"Customers who use the Wal-Mart MoneyCard tell us that we're making a difference in their lives and helping them get their finances under control. The reduced fees on the Wal-Mart MoneyCard will save our customers millions of dollars," says Jane Thompson, president, Wal-Mart Financial Services. "We will continue to lower prices on the money services that we know our customers need."
The cost-cutting retailer, which has enjoyed growth in the struggling economy, announced it would reduce the fees to set up, reload and maintain the card to $3 each. Previously, the MoneyCard setup fee was $8.94, the reloading fee $4.64, and the monthly maintenance fee $4.94.Plus, if a MoneyCard user loads the card with more than $1,000 via direct deposit or by cashing their paychecks at Wal-Mart, and gets cash back at the register versus using an ATM, then the card is virtually fee-free except for the one-time $3 setup fee.
The MoneyCard is issued by GE Money Bank. Wal-Mart had attempted to create its own bank, but failed in the face of protests from existing banks. The Arkansas-based retailer then began rolling out other financial services, of which the low-cost MoneyCard is the latest example.
Wal-Mart's 1.4 million U.S. sales "associates" will be offered the cards at essentially no cost. They will receive a credit of the initial $3 purchase fee for the Walmart MoneyCard, no monthly fee, and their reloads of the cards will be free if they sign up for Wal-Mart direct deposit.
See related: 9 ways to budget with a prepaid card
- Plastiq, Tio: Pros, cons of charging your bills through an online service – Services such as Plastiq and Tio let you charge many bills you'd otherwise have to pay straight from your bank account. But their fees range between 1.9 and 2.5 percent of each transaction ...
- Mobile wallet providers roll out rewards – Incentives offered to get more consumers to pay by phone ...
- 2016 airline gift card comparison chart – Several airlines offer gift cards, but their terms and conditions vary so comparison shop before making a purchase ...