Prepaid MasterCard

Global Cash Card

Not everyone wants to set up the necessary bank account to be able to use checks as a payment method, and some are unable to, due to the requirements.

General requirements to establish a checking account include:

• valid residence street address (not a postal box number)
• telephone number
• tax ID, such as a social security number
• two forms of identification
• one year on the job
• minimum balance
• proof of legal age (over 18)
• good credit

Approximately twenty five percent of the United States population does not have a bank account.Writing checks has become a less popular means of payment due to the time it takes to write the check and the fact that customers must show identification at time of payment.

As far as sending checks to provide funds to family, friends, or employees, most banks charge a substantial fee to cash checks for people who do not hold accounts with that institution.

" The average American pays $10.73 per month to maintain a checking account." -- Source, OC Register 3/29/03.

 

Though convenient, debit cards must also be connected to a bank account with available funds. For those who do not have bank accounts and do not wish to establish them for certain reasons, debit cards are not an option.

About 55% of consumers are unable to obtain a credit bankcard or unable to use the card once obtained. In addition, credit cards do not offer a secure or convenient means of transferring funds to friends, family, or employees.

Because money transfers are sent by mail, draft and postal money orders are subject to loss or theft, and the recovery process can take two months.

Draft money orders have a minimum fee of $11 that increases with the amount being sent, in addition to a currency conversion charge that the receiver must pay. The sender must provide the name of a foreign bank and address of a specific branch where the receiver can accept the money order. The relatively high charges and restrictive parameters can be prohibitive for many individuals who find these services necessary.

Postal money orders are cheaper than draft money orders, at $3 for every $500 sent, plus currency conversions. But there is normally a delay of several days while the foreign bank confirms the transaction with the issuing institution.

Western Union and Travelers Express dominate the electronic money transfer segment, and the transfer fee to Mexico using these services is about $15. For transfers from the U.S. to other countries, transfer fees range from $25 to $500, depending on the amount transferred.