Capcom Rep Responds

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We support reforms to the financial marketplace that protect consumers from unscrupulous banks and lenders.

By Consumers Union on Tuesday, March 17th, 2009

An unusual thing happened as a result of our earlier blogpost on Capcom’s Prepaid Unity Card, that picked up coverage from The Consumerists and CAG (a gaming consumers blog)…a representative from the card’s issuer contacted us to discuss our concerns about the card.

Today, I received a link to Capcom’s revised fee schedule, which includes some tips on how to can avoid the card’s fees by using certain features.

And, a couple fees have changed:

• The dormancy fee is gone.
The $5 dormancy fee that kicked in after 90 days of inactivity has been wiped out.

• If you overdraft, it’s free, at least for the first 5 times.

A Word (or two) about Prepaid Cards and Overdraft
The strange thing about prepaid cards is that you can still manage to overdraft despite the prepaid concept of a prepaid card. An overdraft happens when a transaction goes through even if you don’t have enough funds in your account. You often end up having to pay a fee for each overdraft in addition to the amount that put you in the red (for the Capcom Prepaid Unity Card it’s for the 6th and subsequent times).

To help prevent overdrafting if you use the Capcom card, you can sign up for free daily text message alerts to be more aware of what’s in your account to avoid overdrawing your account–and having to pay the fees. Note that your cell phone provider may charge you a fee to obtain alerts, just like you would be charged for receiving any other text message.

For more information on Overdraft, we have just the page for you.

Another important clarification is that the money linked to your Capcom card would indeed be FDIC insured. This means that if the bank goes belly up, your money is insured, which may or may not be the case with other prepaid cards.

It’s great that erroneous fees like the dormancy fee have been eliminated from the Capcom Prepaid card. The rewards program with the Capcom card may be what attracts Capcom fans who are looking for a prepaid card product to sign up. But like with any other financial product, we still recommend that you read the fine print and comparison shop first, especially since there are other (although blander looking) prepaid cards in the market that have lower fees.

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