Just like the Kardashian sisters, Suze Orman announced that she is launching a new pre-paid debit card. She says, ““It’s there to support you, not to get money out of you. Our goal is that people don’t pay us fees.” A Time Magazine article had this to say about the fees that come along with the card.
The article states that it costs “$3 to buy the card and another $3 a month (waived for the first month) to maintain the account. Some fees are waived for customers who sign up to make direct deposits into their accounts and who bank electronically.
The fees could add up for some cardholders. The card charges a buck or two for checking a balance at a domestic ATM and if the card is declined at an ATM (unless the user deposits $20 or more a month — an admittedly low threshold when you consider that some big banks require a minimum $250 monthly deposit to avoid certain account fees). And in order to add cash to a card, users must purchase a transfer from a third party like Western Union or MoneyGram, which costs around $3 or $4. It also costs $2 to get cash over the counter from a bank teller, and $2 to speak to a customer service agent on the phone. (Cardholders get one free call per month.)”
Of course, then there is the revenue share that I am sure she is receiving goes along with the high transaction fees that are charged to retailers that Congress allowed to continue.
There is also a list of “benefits” that go along with the card. However, it looks like a bunch of window dressing. She is partnering with TransUnion (a credit reporting agency) and they pitch that this might actually down the road help you with your credit scoring. I truly hope that no one is going to get a Suze card for that reason. Since when does using a pre-paid debit card show financial responsibility? It would be like getting points on your credit score for using your checkbook.
So, what is my problem with this one? She has built a massive following that hang on her every word and buy every product that she signs her name to. She has worked extremely hard to build that influence. Should she use that influence to profit from unnecessary fees for a pre-paid debit card when American Express practically does the same thing for free? Really, save your money and get the American Express pre-paid debit card.
Remember, she says “It’s there to support you, not to get money out of you. Our goal is that people don’t pay us fees.” Did I miss something?
