Wal-Mart Cuts Fees on Branded Debit Card

New York City Wal-Mart Stores is slashing the price of its reloadable, prepaid debit card to $3 from almost $9, aiming to attract shoppers who have become weary of credit-card use.

The prepaid Visa debit cards, launched in July 2007, allow customers who do not have bank accounts, or have costly banking arrangements, to deposit paychecks, check balances, pay bills and shop anywhere that Visa debit cards are accepted.

"Financial issues are the number one concern for our customers, and accelerating our efforts to provide affordable financial services will help them live better,” said Eduardo Castro-Wright, vice chairman, Wal-Mart Stores, Inc

Customers will now pay $3 to purchase and activate the card, $3 to reload it at a Wal-Mart store and $3 a month. The fees used to be $8.94 to buy a card plus $4.64 for every reload and $4.94 for the monthly fee.

Customers can minimize fees by reloading their cards with a direct deposit, which doesn't trigger a fee, or after cashing their paychecks at Wal-Mart, when the fee is waived.