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Hip-hop legend Russell Simmons founded the RushCard to provide financial freedom to the underbanked. This prepaid Visa card allows people to make payments and receive their paychecks even if they don’t have a checking account.
The RushCard has two available options. The two choices are the Pay As You Go or the Rush Unlimited plans. Both options provide people with prepaid debit cards, but consumers pay different fees depending on which one they choose.
Users pay a monthly fee of $7.95 for Rush Unlimited depending on whether or not you link a direct deposit to the account.
The company also charges a one-time fee between $3.95 and $9.95 the first time users load money on the card.
Customers can use the card as much as they want without paying any additional fees. That means they can use ATMs and pay merchants without paying more fees.
Pay As You Go
Pay As You Go users don’t pay a monthly fee. Instead, they pay $1 for every purchase they make. This caps out at $10 a month. They also pay a one-time fee the first time they load money on their account. This fee ranges between $3.95 and $9.95.
Benefits of the RushCard
The RushCard makes it easy for people to get access to their funds. They can use more than 24,000 MoneyPass ATMs to withdraw cash without paying a fee. They can also use out-of-network ATMs, but those come with a $2.50 fee plus whatever fee the ATM charges.
Many merchants also accept the RushCard, so people can go shopping with the card. They don’t need to worry about spending more than they can afford as they shop. Overdrafts aren’t allowed, so people don’t have to worry about paying overdraft fees.
The RushCard is also very easy to load. It can be loaded via PayPal, bank transfers, mobile check deposit, and direct deposit. Mobile check deposit is the least desirable of these options. It takes ten days for the funds to hit the account, and those who want to speed it up have to pay a fee.
In addition, cardholders have the option of using third-party merchants to fund their cards. These merchants might also charge a fee.
RushCard offers some other services that users can benefit from. The Bill Pay Service is free of charge and makes it easy to pay bills.
In addition, the company offers free financial counseling. This could help people make sound financial choices. Over time, those sound choices might help them qualify to open a bank account.
Drawbacks of the RushCard
The RushCard’s fees are some of the highest in the prepaid debit card industry. Many fees that cannot be avoided with the RushCard aren’t charged by other providers.
Who Needs a Prepaid Debit Card?
While the fees might be overwhelming to some, others might benefit from prepaid debit cards. This product is especially attractive to those who cannot open bank accounts. People who are paid in checks but cannot open bank accounts can use a prepaid debit card to make it easier to pay their bills.
Also, the fees associated with the RushCard are typically less than what is charged by check-cashing establishments.
The Bottom Line
The RushCard isn’t for everyone, but it’s an alternative to dealing with cash. It gives people some financial freedom to pay their bills or even go shopping. They don’t have to worry about finding a place to cash checks, and they also don’t have to get money orders to pay bills.
However, the fees are high, so checking out some other options before committing to this card is a good idea. There are lots of prepaid debit cards on the market, so people should do their homework before selecting one. They might find one they prefer with lower fees and other incentives.
Author: Jeff Gitlen