PrePaid Debit Card Accounts — Are They Insured by the Government?
Have you considered putting your money and paycheck into a prepaid debit card account, but worried whether your money is safe? It’s a reasonable concern (especially now, when we hear about the financial problems that banks are experiencing). The answer to your concern depends on a few things that are very easy for you to find out.
Luckily, most prepaid debit card accounts are issued by Federally-insured banks. That means that you could be insured for up to $250,000 by the Federal Government. However, not all prepaid debit card accounts are insured by the Fed.
Based on a legal opinion published late in 2008, here are the two criteria your prepaid debit card account must meet for you to enjoy the full benefits of deposit insurance by the Federal Government:
First, the bank that issues your prepaid debit card must be “FDIC Insured”. You can figure this out by either checking the bank’s website, or checking with http://www.fdic.gov, or by calling your bank.
Next, the prepaid debit card must be issued with you as the account holder. If the debit card is issued to your employer, or to some other entity, then that entity is insured for any losses. Make sure that you are listed as the account holder (or your spouse or another family member) so that you (or your family) enjoy the full benefits of FDIC insurance protection.
You can read more about FDIC insurance coverage for prepaid cards at the FDIC website.
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Dear Sir or Madame.
1)We are in the process to start offering in Venezuela and worldwide trough Internet as well as trough our representatives, bank accounts and debit or prepaid cards of an FDIC USA bank. We are Venezuelan residents.
2)We also have in Venezuela many customers, broker dealers and exchange brokers that would like to open accounts in a FDIC USA bank in order to make legal stocks and currency exchange transactions, not only for the FDIC but also for the technologic platform that quick wire transfers require which are the base of these operations from brokers to customers and customers to brokers who would open accounts in your bank. In other words the transfers would be from USA bank accounts and probably from customers and brokers who would have the accounts in your bank.
We are looking forward not to loose these customers and relations as have happened in the past due to government’s troubles.
All the mentioned brokers are filed and supervised by the Venezuelan Bank Commission and would have to pass your requirements.
We would appreciate very much your comments about your support in these ventures.
Thanking you in advance.
Best regards.
Alfred Leon.
Phone: Caracas + 58 212 7512282/ Miami (305)2990263