Beware of the H&R Block Emerald Card
Published January 27th, 2008 in Credit Help and Tips.
So tax season is quickly approaching, and with that comes what many would call misleading and predatory offers for tax-related services.
The most recent advertisement I’ve seen is from H&R Block, who is offering to put your tax refund on a prepaid MasterCard debit card via its “H&R Block Emerald Card“.
The first red flag, and clearly the biggest negative to this deal is the fact that the balance on the card cannot be redeemed for cash.
If you do wish to withdraw cash from the card balance, you’ll be subject to an ATM fee of $1.85 per transaction, along with any fee the ATM operator charges.
And you may also be charged 50 cents per ATM denial, and $10 for a replacement card if it’s lost or stolen, according to the terms and conditions.
Additionally, there’s a so-called monthly maintenance fee of $2.50 per month after three consecutive months of no activity, so you better use that card or you’ll start losing money.
Not to mention the fact that the card doesn’t work at gas station pumps, so you’d have to walk into the gas station and ask the attendant to swipe the card to purchase gas.
Of course H&R Block views it all a bit differently, claiming the card actually provides the convenience and security of a debit card, without the aggravation of check cashing fees.
But to me it seems a little silly to put yourself in a position where you stand to lose money through unnecessary charges, especially when you have the opportunity to ask for a cash payment.
After all, if you deposit the money directly into an existing checking or savings account, you can use the money via your debit card just the same and avoid the fees altogether, while maintaining complete control over your hard earned money.
