Capital One Prepaid Card Review

Capital One's prepaid card is practically fee-free.

• People who want a MasterCard without a credit check.
• People who want a cheaper alternative to a secured credit card.

Credit Rating Required

• No credit check required

Pros

• No or low fees.
• No credit check required.
• Free direct deposit.
• Free online bill payment.

Cons

• Doesn't build your credit history.

Reload Limits

• $950 daily cash maximum; maximum 10 loads per month.
• $7,500 load limit from direct deposit.
• No more than $7,500 on the card at one time.

Fees

• Activation fee: None.
• Monthly fee: $4.95, free if you load more than $500 per month.
• Reload fee at retailers: Capital One charges no fee, but retailers usually charge $4.95.
• Reload fee from electronic bank transfer: Free.
• ATM fee: First one per month is free, then $1.95, plus any fee the ATM charges; $500 daily withdrawal limit.
• Paper bill payment: $0.95 per transaction.

There's really no reason why prepaid card companies have to charge such high fees, and so many of them. After all, it's your money on the card, not the card issuer's. They can't lose money, yet many of them treat their customers like deadbeats.

Capital One, the credit card giant, doesn't do that. It offers a prepaid card with practically no fees.

The Capital One Prepaid Card doesn't charge an activation or initial purchase fee, and its modest $4.95 monthly fee is easily avoided if you load more than $500 a month to the card. Direct deposit is free, and you can direct deposit your pay or benefits check up to $7,500 a month.

It doesn't charge for cash reloads, although most retailers charge $4.95 per load. Even customer service is free - many prepaid card companies charge you if you have a question or problem and want to speak to them.

Electronic bill payment is free, although Cap One does charge $0.95 per transaction if you want to send a paper check.

Look no further. This is the cheapest prepaid card on the market.