Review Of The Walmart MoneyCard

If you are a frequent Walmart shopper, you have probably seen the information for the Walmart MoneyCard®. This is a reloadable prepaid debit card which pays cash back on Walmart purchases. The cash back feature sounds very appealing to nearly every consumer. But before you sign up for this card, you should learn what the card can and cannot do, and then make an informed decision as to whether the card is right for you.

What Bank Issues The Walmart MoneyCard?

The Walmart MoneyCard® is issued by Green Dot Bank. This bank was established in 1999, and has become one of the world’s largest prepaid debit card companies. Green Dot Bank, based in Pasadena, also works with AT&T and Citi on their cobranded card programs.

The Walmart MoneyCard

The most attractive feature of the Walmart MoneyCard® are the rewards you can earn. You can use the card anywhere but rewards are only generated when you shop at Walmart or the Murphy Fuel stations. Cardholders earn 3% cash back on all purchases on Walmart.com, 2% on transactions at Murphy USA or Walmart fuel stations, and 1% on any purchases at Walmart stores. There is a limit of $75 that you can earn during the year.

Obtaining the card is relatively easy. Consumers do not need a bank account and a credit check will not take place once you apply. Cardholders can use the card wherever Mastercard debit cards are accepted. The card can be purchased at any Walmart store for $1. There is no charge if you obtain it online.

Most prepaid cards come with some fees, and the Walmart MoneyCard® is no exception. While there are not any annual fees, overdraft fees or inactivity fees on this card, the biggest drawback to the card is the monthly fee. These monthly fees can potentially wipe out every dollar of your rewards, making the benefits of the card non-existent. The only way to avoid this fee each month is to load at least $1,000 onto your card every single month.

Cardholders can take out cash withdrawals for free at any Walmart store. But consumers will be charged a fee if the cash withdrawals are made at a bank or an ATM. Reloading funds on to the card can also cost you money. Fees will be charged if you load at Walmart Checkout or at retailers in the Green Dot network, but there are no reload fees if you make a direct deposit or load with your government benefits.

Is The Walmart MoneyCard Right For Me?

The only people that should consider this Walmart MoneyCard® are avid Walmart shoppers who load at least $1,000 into their account each month. In this way, you will avoid the costly monthly fee charged by Green Dot Bank, and give yourself the opportunity to earn up to $75 in cash back every 12 months. This $1,000 should be loaded onto the card through a direct deposit in order to avoid any reloading fee. If you are unable to make a direct deposit of at least $1,000 each month, there would be very little benefit getting this card, since your rewards will be almost entirely eaten away by these monthly and reloading fees.

If you are in the market for a cash back card, and you do have good to excellent credit, here are three attractive cash back credit cards which do not have a monthly or annual fee:

Citi® Double Cash Card – 18 month BT offer

The Citi® Double Cash Card – 18 month BT offer gives cardholders the chance to earn cash back twice: 1% cash back when the purchase is made, and another 1% when you make the payment, for a total of up to 2% cash back. If you are thinking of transferring a balance to this card, you will receive 18 months of 0% APR introductory financing on the amount transferred, but that comes with a 3% balance transfer fee. After the promotional financing rate expires, cardholders will have an interest rate of 13.99% – 23.99% (Variable) on the remaining balance, depending on your creditworthiness.

Capital One® Quicksilver® Cash Rewards Credit Card

The Capital One® Quicksilver® Cash Rewards Credit Card offers customers 1.5% cash back on all purchases with no limits. New applicants receive a $150 cash bonus when $500 is spent on purchases during the first three months of opening the account. Customers get 15 months of interest-free financing on both new purchases and balance transfers, with a 3% balance transfer fee. After the introductory financing period ends, the standard interest rate of 15.49% - 25.49% (Variable) will apply. There are no foreign transaction fees with any Capital One card.