Rapper Lil Wayne’s Young Money Card was a reloadable prepaid Discover debit card that debuted in 2011, with negative aspects that included a high activation fee of $6.95, a reload fee of $4.95 per transaction, a monthly fee of $3.95 and an ATM withdrawal fee of $2.00 per transaction, according to U.S. News and World Report. However, the Young Money card advertised itself as being low-cost, according to Go Banking.Continue Reading
Nerd Wallet pointed out that the total cost of ownership for the Young Money card would be $20.80 in the first month, assuming two deposits. While the Young Money card clearly explained its fees, Nerd Wallet said that better options than the Young Money card were available for people with poor credit, the most frequent users of prepaid debit cards. Customers load money onto the cards so that they can be used in transactions that require a traditional credit or debit card, such as purchases over the Internet.
Go Banking reported that celebrities who have sponsored prepaid cards like the Young Money card often work with financial institutions and put as little of their own capital into the venture as possible. The Young Money card failed to become self-sustaining, and was discontinued in 2014.Learn more about Credit & Lending