A new study by economist Michael Flores of Bretton Woods, Inc. shows that prepaid debit cards can actually cost less to use on a monthly basis than low balance checking accounts for some consumers. Flores compared the average fees of prepaid cards against the fees charged by checking and debit accounts that charge for low balances, ATM usage, and overdrafts. He found that banks offering such accounts rack up charges of $200-$350 a year. And consumers who can’t get a checking account without a prepaid card “…must rely on a patchwork system of money orders, check cashing services and bill-payment fees” according to Payment News.

“There is no question that prepaid cards are a much better option for many consumers,” said Flores. “An objective review of the costs associated with these cards compared to costs of alternatives such as basic bank checking account, in addition to the safety and security associated of prepaid cards compared cash, leaves no doubt that prepaid cards are a smarter option for many.”

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In comparison, by our calculations, MiCash cardholders save as much as $322 annually compared to people who use check cashing services instead of direct deposit to our Prepaid MasterCard. And compared to our competitors, we offer some of the lowest fees around, as well as friendly 24/7 phone customer service.