Magic Johnson became the latest celebrity to enter the prepaid debit card market, after unveiling the aptly-named MAGIC MasterCard on Tuesday.
The former basketball star said in a press release he launched the card, in partnership with OneWest Bank, to help customers without traditional bank accounts “function in today’s society.”
While the card contains a fairly competitive fee structure, it’s not exactly a game changer.
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Like Chase’s virtually fee-free Liquid card, launched earlier this year, the MAGIC card carries a $4.95 monthly fee. However, it also carries a $4.95 activation fee and a 50-cent bank teller fee.
The monthly fee is higher than some of the card’s major competitors and lower than others. Wal-Mart Money Card and Suze Orman’s Approved Card both carry $3 monthly fees, while Green Dot, Mango Financial and RushCard charge $5.95, $5 and $9.95.
However, both Green Dot and Mango Financial will waive monthly fees if cardholders meet certain load requirements each month.
MAGIC Cardholders are entitled to two free out-of-network ATM withdrawals a month. After that, each will cost $2.50. In-network ATMs can be used for free. They also get one free live customer service call each month, after which they will be charged $2.
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Cardholders can carry up to $10,000 on the card. Maximum daily purchases are limited to $1,500 a day. Cardholders can withdraw up to $500 from an ATM, bank branch or retail outlet daily. There’s also maximum load limits of $5,000 a day and $10,000 a month.
Money can be added for free via direct deposit or from a bank account. Cardholders can also load money via a Green Dot Money Pack for $4.95 a load.
MAGIC card is partnering with PiggyMojo, an online savings tool, to help cardholders put money toward a specific goal. However, the feature is meant purely as a savings tool. It currently doesn’t feature a rewards program.
Image: LifeSupercharger, via Flickr
Jeanine Skowronski Personal finance reporter and credit expert, Jeanine's work has been featured by TheStreet, Newsweek, Business Insider, Yahoo Finance, MSN, Fox Business, Forbes, CNBC and various other online publications. She has previously served as the managing editor of a small personal finance blog for Xanga.com and an editorial assistant at Maxim Fashion magazine. @JeanineSko
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Magic Johnson now on list of those preying on the misfortunate and irresponsible.
Hello. My name is Donnie. I would like to apply for a credit card. I’m unsure as to which card that will be a great fit for me. Need your help.
Sincereley
Donnie
Netspend.