Prepaid Maestro Cards

The Benefits of Prepaid Maestro Cards

These reloadable pre-paid credit cards work just like a debit card linked to a checking or savings account. In addition, there are many supplementary benefits to carrying a Maestro card, especially if you plan on traveling abroad.

• They are FDIC backed in the U.S. – Maestro credit cards issued in the United States linked to a checking or savings account are backed by the Federal Deposit Insurance Corporation. It is important to note that FDIC insurance only applies to cards linked to a bank account in the U.S. If you simply load your card through a retailer, the funds are not FDIC insured.
• Worldwide acceptance - This card is accepted by millions of merchants worldwide.
• Maestro security- The Maestro card is safer than carrying cash or traveler's cheques.
• Spending control – The card works just like a traditional debit card and you can only spend what you have. No worrying about incurring additional debt like you would for a credit card and it allows parents and caretakers the ability to keep tabs on the amount of money spent by their teenage or college aged children.
• Enhanced security - To make purchases with your Maestro card, you must enter your PIN number which helps to prevent unauthorized purchases if your card is lost or stolen. Many banks also offer the opportunity to register your card with a special code. The MasterCard Secure Code is an additional secret code registered to Maestro credit cards as an enhanced feature to protect against unauthorized use of your card.
• No credit checks - Your credit report does not have to be obtained in order to get this card.

The Lowdown

Just like any prepaid card, there are fees associated with the prepaid Maestro card. These fees vary depending upon the issuing bank or financial institution. All amounts are given in U.S. dollars.

Some issuing banks add additional charges to certain fees. Some banks may charge you an additional 5% of the dollar amount of your Western Union transaction, an additional 1% of the dollar amount for card transfers, and an additional 1% card loading and/or unloading fee. This is a general list. Fees vary from bank to bank, so be sure to check your issuing banks fees before applying for your Maestro card.

Final Things to Keep in Mind

• It can't be stressed enough that you really have to do your research when considering this card. Some Maestro card issuers like Club 18-30 waive a lot of the fees mentioned above, while other card issuers like Web Exchange have higher fees. The Internet is a great resource to research the specific terms and conditions for each Maestro card issuer.
• This card will not earn you interest. Unlike a checking or savings account, you will not earn interest with your Maestro card.
• You are still subject to overdraft fees. Again, the specific fee amounts depend on the card issuer but are generally the same as if you were overdrawn on your checking account or bounced a check.
• All prepaid cards come with fees. Although it may seem like a lengthy list of fees associated with the Maestro card, they are not unusual for prepaid credit cards.