The launch of the Bluebird Prepaid Card from American Express and Walmart has created quite the buzz in the business community given that American Express – which has traditionally focused on the excellent credit crowd – is going after the sizeable underbanked community and Walmart is progressing toward its longtime goal of offering a suite of banking services to its customers, thereby achieving a measure of vertical integration.
However, most of us are less concerned with the big-picture business ramifications and more interested in whether or not the Bluebird Card will benefit us on a daily basis. So, let’s see how it stacks up against Card Hub’s picks for the Best Prepaid Cards for each of the three main consumer uses (i.e. alternative checking account, alternative check cashing tool, and a means of providing an allowance), applying the same criteria as our 2012 Prepaid Card Report.
Cost
- Alternative Checking Account: The Bluebird Prepaid Card can be free to use as a replacement checking account, as it does not charge fees for activation, monthly or annual maintenance, or ATM withdrawals at 22,000 MoneyPass ATMs nationwide if you are enrolled in direct deposit. The fact that it also offers online bill pay means it is on par with the GreenDot Gold Prepaid Card, which was Card Hub’s selection for the Best Prepaid Card to Use as a Replacement Checking Account in 2012.
- Child’s Allowance: The Bluebird Prepaid Card allows you to load funds for free via a bank account or mobile check deposit, which means parents can give their kids an allowance without wasting money on fees. However, if you load funds in this manner, each ATM withdrawal that you make will cost $2. This card could therefore be more expensive than the Kaiku Visa Prepaid Card, which has a $1.95 monthly fee but does not charge for ATM withdrawals at Allpoint’s 43,000 ATMs nationwide. The Kaiku Card was launched after the 2012 Prepaid Card Report came out but represents a lower-cost option than the study’s choice for the Best Prepaid Card to Use as a Financial Teaching Tool, The Approved Card from Suze Orman.
- Alternative Check Cashing Tool: While you can deposit checks for free by taking a picture through an Amex mobile app, you’ll have to pay $2 for each ATM withdrawal when you do not have direct deposit. Depending on how many times you hit the ATM per month, the Bluebird Card could therefore be either slightly more or less expensive than Chase’s Liquid Card, which has a $4.95 monthly fee and was Card Hub’s choice for the Best Prepaid Card to Use as a Check Cashing Tool.
Based on its cost and basic features, the Bluebird Prepaid Card from Walmart and American Express seems like a great option for most consumers, but it’s also fair to wonder if it offers any other benefits that will sweeten the deal even more.
Pros
- Mobile Check Deposit: The ability for consumers to load funds to their cards by taking a picture of a check through Amex’s mobile app was mentioned above, but it bears repeating because it addresses one of the unbanked population’s main needs.
- No Foreign Exchange Fee: The fact that you can use this card overseas without incurring additional fees is undoubtedly a big plus, since not everyone may want to open a no foreign transaction fee credit card. Keep in mind that MoneyPass does not yet have any international ATM locations, which means it might not make the best way to withdraw cash when traveling abroad.
- Purchase Protection: If you buy something that breaks accidentally or is stolen within 90 days, American Express will reimburse you up to limits of $1,000 per occurrence and $50,000 per calendar year.
- Global Assist: This service gets you access to emergency translation services, referrals to doctors and lawyers, prescription replacements, and aid sending urgent messages home when traveling abroad.
- Ability to Establish Subaccounts: Cardholders can establish up to four subaccounts for their Bluebird Cards. What makes this different from other cards’ ability to designate authorized users is the fact that you can set custom spending limits for each subaccount as well as either enable or disable account features such as ATM access.
Marketing Fluff
A prepaid card’s fees and features are undoubtedly the most important things for consumers to consider, but since issuers tend to distract with “benefits” that provide more surface appeal than actual benefit, it’s also important to point out what you can write off as marketing fluff.
- Entertainment Access: Unless you are a hardcore fan of sporting events, concerts, and the like, this common Amex benefit will likely have little practical value to you, especially considering the fact that the tickets and access it provides typically still come at a high price.
- Roadside Assistance: You might think that getting help if your car breaks down or runs out of gas would be great, but you are responsible for the cost of all the roadside assistance services that the Bluebird Card facilitates. Given that you could just as easily call a tow truck, gas station, or locksmith as Bluebird customer service, this doesn’t provide much benefit.
While you should essentially disregard these supposed features, it’s important that you do not overlook the Bluebird’s actual flaws.
Cons
- ATM Fees: If you are a heavy ATM user and do not plan to enroll in direct deposit, the fact that each ATM withdrawal will cost you $2 could make the Bluebird Card an expensive choice.
- No Automatic Loading of Federal Benefits: Recipients of federal benefits such as Social Security, a federal pension, or VA benefits won’t be able to have them automatically deposited into their Bluebird Prepaid Card accounts.
Final Verdict
Ultimately, the Bluebird Card brings a lot to the table, including minimal fees and the customer perks that American Express is known for. In fact, it is the only card on the market that is in the conversation for the best prepaid card for each of the three primary consumer uses. The only thing that consumers should watch out for is racking up ATM fees if they are not enrolled in direct deposit. As a result, Card Hub has named it the Best Overall Prepaid Card for 2012.
If you put your money on your bluebirdcard at the pplace you broughtit it is there right away-igot mine at wakmart an I have no problem with it -it go on right away no waiting.
February 22, 2013 at 06:05pm
My friend bought a bluebird card to have her tax refund deposited on it. After she filed her taxes then the issue came up the government payments are not able to be deposited. Now she has to wait two months to get her tax return. Bluebird sucks.
February 13, 2013 at 04:24pm
blue bird money cards suck takes forever to post your direct deposit I can cash my check faster.
February 8, 2013 at 03:53pm
A lot of people are wondering why you cannot receive a direct deposit from a federal agency on your BlueBird card. The reason is because federal law requires that direct deposits made to a pre-paid account can only be made to an account that is FDIC or NCUA insured. The funds on a BlueBird card are not insured and therefore cannot receive these types of direct deposits. Here is the exact language of the law: (31 CFR 210.5 (b)(5)(i)). “Where a Federal payment is to be deposited to an account accessed by the recipient through a prepaid card that meets the following requirements: (A) The account is held at an insured financial institution;. (B) The account is set up to meet the requirements for pass-through deposit or share insurance such that the funds accessible through the card are insured for the benefit of the recipient by the Federal Deposit Insurance Corporation or the National Credit Union Share Insurance Fund in accordance with applicable law.
February 5, 2013 at 04:33pm
I have had the card for 3 months now, I have direct deposit set up, never been charged any fees! I have run into a few places that do not take AMEX, but other than that, no issues, my account status is always current up to the minute!
January 23, 2013 at 03:55am
Its amazing how many of these fake web pages that claim to be a review but are little more than corporate bull pucky, This card Sucks, why? Because they have no email no method of contacting them other than the eternal hold to the Philippines, you cant blame them for outsourcing but this is a huge problem because no one over there understands complex issues like not being able to login to your account, plus if you try to login from you home and then later in the day you try to use say a mobile app they will lock down your account until you call in and wait on eternal hold. People avoid this card like your money might be on hold forever. Until they fix this issue they will not even know that they have a problem because no one can call Walmart or american express to let them know they have a problem, in my experience when you do not communicate with your customers you have serious problems.
December 20, 2012 at 06:25pm
This card sucks. Plain and simple. The balances are never up to date. It has taken more than 10 days for a transfer and it still is in neither account. I'm not even able to get cash back. If you're looking for a checking alternative don't bother... luckily I had doubts and kept my bank account.
December 8, 2012 at 05:36pm
If I can't direct deposit mine and my sons ssa checks its a no go for me. Sticking with my prepaid MasterCard from Walmart. No fees!
November 28, 2012 at 06:54pm
I am still waiting for my check to clear...10 days..5 actual business days..today was the day..now they are saying it will be" sometime" today..what a crock! Not going to stay with them.
November 26, 2012 at 02:20pm
I do not like waiting for my employer direct deposit to post to my blue bird acct, we get to split up our checks & I have already received my direct deposit in my bank acct but I'm still waiting for my bluebird to post. I prefer an immediate access to my money.
November 23, 2012 at 10:39am
I was interested in this til I read two things....one, the fee for atms if no direct deposit, and 2, after working in retail in two different major stores that do not accept american express....alot of places do not.
November 14, 2012 at 01:56am
Bummer! Can't schedule my VA Veterans Pension Direct Deposit.
November 10, 2012 at 05:01am
how much does it cost to add funds?
November 2, 2012 at 02:49pm
I found after loading the card, I can't get cash-back with perchase at the store register like Walmart Visa cards! I won't pay ATM Fees!
November 1, 2012 at 10:11pm
This sounds like good thing for your banking needs.
October 28, 2012 at 07:20pm
I have a green dot wal mart card they charge 3 dollars a month if you deposit less than 1000 dollars they also charge you 2 dollars for atm withdrawals. So with 2 dollars per withdrawal and no monthly fee it seems this wal mart card would be cheaper to use. But not everywhere takes amex so that may be a consideration as well.
October 26, 2012 at 07:55pm
I would not choose this card because it has more cons than pros and seems it would be more expensive to use than even the basic wal mart money card, which does not have the fees this one has.
October 25, 2012 at 02:56am
what do you do with your checks after you take the picture of them?
October 21, 2012 at 12:58am
Given 1 ATM withdrawal per week with the first one free that's 36 per year so $72 a year versus $4.95 a month for the Chase Liquid card (unless you are a Chase customer then it's no charge at all) which is $59.40. Not exactly such a big deal especially when you throw in that Chase is not nationwide. The Kaiku card allows cash reloads via Visa Readlink which is $4.95 per load. So if you have direct deposit their card is more expensive because the ATM's are free also on Bluebird and if you don't their card is more expensive because loading cash once a week is $254 a year versus ZERO for Bluebird. What you left out is that Kaiku charges 3% to load via debit card versus $2 for Bluebird. After about $67 Bluebird is cheaper. Amex merely has to add a clause that states when you load X minimum amount per month in any way other than direct deposit your ATM use is free also. The same way Green Dot does.
October 13, 2012 at 01:48am