Chime vs RushCard Prepaid Card

There are several payment options available today which do not involve physical cash. For example, debit cards and prepaid cards are now offered by different financial institutions to allow users a means of making transactions. But what is the difference between the two?

What is the difference between a debit card and a prepaid card?

The biggest difference between the two is that a debit card is linked to a checking or savings while a prepaid card is not linked to any bank account. The funds in a debit card are tied to the funds of a bank account and any transactions made using the card are deducted from the account. Some debit cards have overdraft protection in case one spends more than they have in an account. On the other hand, a prepaid card needs to be loaded with money before one can make any purchases or transactions. A person who uses this type of card can only use the available amount on the card. 

Banks usually issue free debit cards that comes with opening a bank account but there can be some corresponding banking fees. Prepaid cards often have a monthly minimum fee which must be maintained to use the card. 

Comparing Chime Visa Debit Card to RushCard Prepaid Visa Card

In order to have a better understanding of both debit and prepaid cards, let’s take a look at the Chime Visa Debit Card and the RushCard Prepaid Visa Card. Chime is an example of a modern online bank account that offers all the functions of a traditional bank. RushCard is a prepaid card service with some online card management features. Below is a table comparing both Chime Debit Card and RushCard in five key features: fees, mobile app, direct deposit, security, and savings account

Let’s take a closer look at how the two compare.

Fees

There are no hidden charges for Chime Debit Card such as monthly maintenance fees, minimum balance fees, foreign transaction fees, and overdraft fees except out-of-network fees.

Both of RushCard’s plans (Unlimited and Pay-As-You-Go) have regular charges for use. Both plans charge other fees such as out-of-network ATM fees and money transfer fees. An inactivity fee is charged only in the Pay-As-You-Go plan.

Mobile App

Chime has an award-winning mobile app that allows members to keep track of balance and transactions. It is available for download at the Google Play Store and Apple App Store for free.

RushCard also has a mobile app available for download in the Google Play Store and Apple App Store for free.

Direct Deposit

Chime offers early direct deposit and members will get their pay two days early directly to their checking or savings account.

RushCard also has an early direct deposit feature but the funds can only be credited towards the prepaid card.

Security

Deposits up to $250,000 are insured through Chime’s partner, The Bancorp Bank, Member FDIC; Transactions are protected by the Visa Zero Liability Policy, and the mobile app is protected by two-factor authentication. In case the card gets lost or stolen, the client can block it through the mobile app.

RushCard is also covered by the Visa Zero Liability Policy and the mobile app has a One Touch Access protection. In case the prepaid card gets lost or stolen, clients can prevent new purchases through its mobile app.

Savings Account

Chime’s Savings Account has two built-in Automatic Savings that helps in saving money faster:

  • Save When You Spend 
  • Save When You Get Paid 

Users must apply for RushCard’s RushGoals Savings feature to gain 3% annual interest

Conclusion

Both Chime Debit Card and RushCard have similar features but what makes Chime better is that users will not have to worry about any hidden banking fees, making it more affordable overall than RushCard. The latter has been known to have fees that cannot be waived and it is considered as one of the more expensive prepaid cards on the market. 

Chime is the better choice

Overall, Chime has more perks and benefits for its clients, especially those who are looking to save and grow their money. Since the debit card is tied to an online checking account, it makes it easier to keep track of all transactions using the mobile app. Chime is the overall better choice when it comes to managing personal finances. 

Banking Services provided by The Bancorp Bank or Stride Bank, N.A., Members FDIC. The Chime Visa® Debit Card is issued by The Bancorp Bank or Stride Bank pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa debit cards are accepted. The Chime Visa® Credit Builder Card is issued by Stride Bank pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa credit cards are accepted. Please see back of your Card for its issuing bank.

The Bancorp Bank and Stride Bank, neither endorse nor guarantee any of the information, recommendations, optional programs, products, or services advertised, offered by, or made available through the external website ("Products and Services") and disclaim any liability for any failure of the Products and Services.

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