It’s not cool to be Loaded
This morning I stopped by my beloved Kiwibank (It’s Ours!) to pick up an application form for their new Loaded card. It promises the freedom of prepaid with the power of Visa. Wow. I’ve been waiting for a debit card like Westpac offers which is basically an Eftpos card with a credit card number so it can be used for online shopping, a vice of mine.
So I was happy, momentarily. Then I read the “Information and application pack”. Firstly I must explain I currently have a student account with Kiwibank which means I pay no fees, the bank gets $0.00 of my money. I am in fact a foundation customer and have been a loyal customer since they gave me an Eftpos card at age 11.
I’m annoyed because the information pack is very sneaky in explaining the costs of this Loaded card. Check out this paragraph:
“How much does it cost? Once you have paid the initial application fee, you’re loaded! It won’t cost you anything to spend instore or online with any New Zealand retailer and you can access your account information online for free.”
Sounds good, or so I thought. Then I read the fine print. Hidden away in a table are these nasty surprises:
- $1.00 charge every time you top up your card.
- $0.60 per ATM withdrawal or balance enquiry.
- $7.50 per cash advance from the bank or authorised retailers.
- $5.00 monthly charge if the card is not used for six months.
- $10 annual account maintenance fee.
- $15 to close the account.
- $25.00 charge every time your account goes into negative balance.
Hold on! Repeat that last one. $25 charge every time your account goes into negative balance. I thought you said earlier “You load funds onto it before you can use it, so you can only spend what you’ve got”. The lovely folks at Kiwibank don’t seem to notice this blatant contradiction. Then in reference to this negative balance charge they say (in really, really fine print) “We recommend that you regularly check your balance online to avoid these fees.” Thanks, really.
So in conclusion, be careful. The fees aren’t unreasonable, the problem is a quick skim read of the info pack could lead to you getting screwed. Badly. On the other hand, provided you understand all the fees and charges you can avoid them and you’ll be fine. Personally, I’ll keep waiting.
