Our ratings of prepaid credit cards are based on a weighted average of five separate factors. Each factor receives a rating ranging from one star (worst) to five stars (best), along with a weighted overall rating on the same five-star scale. We weight the five ratings based on our assessment of what is most important in assessing a prepaid card. The most important element is fees, which are weighted at 50% of the total rating. Here’s a breakdown of our rating system, along with the weight given to each rating element:
- Fees: 50%
- Banking Features: 20%
- Ease of Use: 10%
- Customer Service: 10%
- Other Features: 10%
Fees
The fees charged by many prepaid credit cards can be confusing and very pricey. We here at Prepaid Cards 123 view fees as the single most important consideration when choosing a prepaid card. For that reason, we weight our rating heavily in favor of those cards that charge reasonable and clearly defined fees.
In giving a card a star rating based on fees, we first consider fees to use the card. These include activation fees, monthly service fees, and fees for PIN and signature transactions. While most prepaid cards have a long list of fees, many of the fees can be avoided with the proper use of the card. But activation fees, monthly service fees, and transaction fees can’t be avoided. As a result, excessive fees in any of these areas will result in a lower star rating for the cost of the card.
Beyond these core fees, we also look at the cost to use an ATM machine, as well as fees to speak to a customer representative or to receive a paper statement. You can find an exhaustive list of fees for the most popular prepaid cards, which we regularly update.
Banking Features
Many prepaid cards now offer online banking features such as bill pay and online check writing privileges. In addition, some cards offer high interest rate savings accounts linked to their prepaid cards. We evaluate these features, including cost, as part of our rating system.
Ease of Use
Based on our personal use of each card we review, we rate everything from how easy it is to get to loading the card to using it online. Part of our evaluation also looks at how easy the card’s website is to use.
Customer Service
While customer service experience can vary significantly, we provide a rating based on our interaction with representatives. We also use the experience of others that is well documented to determine our rating.
Other Features
Finally, ten percent of our rating is based on other features and benefits offered by the prepaid card. For example, some cards come with a prescription discount card, bonuses for direct deposit, or even cash back rewards.
