Prepaid cards act similar to debit cards — customers can load money directly on the card and make withdrawals — but they’re not linked to a checking account.
Fifth Third’s Access 360 charges a monthly service fee of $7, which is reduced to $4 for customers who are also have Fifth Third checking accounts or those who make monthly direct deposits on the card of $500 or more.
Customers use these cards for various reasons, such as a budgeting tool or way to segment spending, to make secure online purchases, or as an alternative to cash for those without a traditional bank account, said Mike Butera, head of retail banking for the Cincinnati-based bank.
“Prepaid cards are one of the fastest-growing forms of payment and one which we are seeing consumer demand,” Butera said.
PNC Financial Services Group and JPMorgan Chase & Co. introduced prepaid cards in July.