The Kardashian sisters launched the Mastercard Prepaid credit card last week. This is their very own and in partnership with Mobile Resource Card. KardashianKard.com has marketed the credit card, and the tagline is “fast and convenient way to manage money”. However, the Kardashian Kard has the same features as well as drawbacks as all other prepaid credit cards. They too have the same hidden charges and fees, and these credit cards also do not have a good consumer protection policy in place. This was as per the report published by the Consumers Union.
The fee structure is such that a fee charged on all transactions, wherein even when a transaction is declined at the point-of-sale or at an ATM withdrawal, the cardholder is charged a dollar. The ATM withdrawal fee is $1.50 and a fee of $9.95 is charged to replace a stolen or a lost card. Cancellation charges on a card are $6. Added to all of this, consumers have a choice of a 6-month or a 12-month plan period where they will have to shell out extra by way of monthly fee, minimum deposit fees which amount to another $59.95 and $99.95 respectively.Drawbacks of the card:
Some of the drawbacks of the prepaid debit cards are that the fees vary from one card to another. The activation fee on the card alone is anywhere from $0 to $29.95, and the monthly fee was as high as $10 per month.
The consumer report also claims that these prepaid credit cards do not have the consumer protection in place, in case of fraud. In case the credit card is stolen or lost, and if the consumer reports within two working days, the cardholder is liable up to $50 as charges. However, this increases to $500 in case the loss of card is reported after two days and within 60 days. The only protection that is offered by the credit card is voluntary, and does not come under the purview of the federal laws. On these credit cards, balances cannot be carried forward.Benefits of the card:
The only positive thing about this card is that cardholders can pay through their cards, as it is more practical than cash. Since the cash is loaded onto the prepaid card, one will curtail expenses and incur fewer debts. These cards carry no late fee, monthly fee, or charge on missed payments. Even those with bad credit can avail a card. However, these cards don`t help in building credit history.