Green Dot MoneyPaks vs. Vanilla Reloads
In Part 1 of his series on Green Dot MoneyPaks, TPG contributor Jason Steele introduced us to Green Dot and covered the basics of prepaid reloadable cards. In today's post, he compares Green Dot to the other popular product in this class, Vanilla Reloads.
Why Green Dot MoneyPak over Vanilla Reloads?
Vanilla Reloads were an incredibly easy way to generate credit card spending…until they became hard to purchase using a points-earning credit card.
Office Depot stopped carrying these products last year and CVS drugstores typically limit customers to $1,000 of Vanilla Reload purchases in a transaction or a day…when they have Vanilla Reloads in stock at all, that is.
So at this point, there are several reasons to consider purchasing the Green Dot MoneyPaks over the Vanilla Reloads including:
1. Green Dots are available nearly everywhere. Green Dot boasts over 50,000 locations. Check their store locator for specifics, but you can find them at Walmart, CVS, Walgreens, 7 Eleven, Kmart and Rite Aid nationwide in addition to retailers like Radioshack, Ralphs and Circle K among others depending on your location.
By contrast, Vanilla Reloads can only be purchased at a limited number of chains, many of which will not accept credit cards for their purchase. CVS seems to be the most popular place to purchase Vanilla Reloads with a credit card, but stocks of them have become scarce, and CVS has imposed limits on them that vary from location to location but might include only being able to use cash or a debit card, or only being able to purchase $1,000 worth of them per day. There are actually no CVS stores in Denver where I live, which means I can't get Vanilla Reloads at all with a points-earning credit card.
Instead, I have found Rite Aid stores will nearly always sell me Green Dot MoneyPaks when I am using a credit card. But with so many retailers offering Green Dot MoneyPaks, it is just a question of trial and error to find a store near you that will accept your credit card.
2. There are at least 20 times more reloadable/prepaid cards that take Green Dot MoneyPaks than Vanilla Reloads. Depending on how you count them, there are 5-10 cards that accept Vanilla Reloads, and Bluebird is the only one that features bill pay.
With Green Dot MoneyPaks, there are nearly 200 compatible prepaid cards, and many offer free, online bill pay services such as AccountNow, RushCard and the 247 cards.
Bluebird has a daily load limit of $1,000 and a monthly load limit of $5,000. In contrast, each Green Dot compatible prepaid card has its own load limit, and people can have several different prepaid cards. So with Green Dot, there is no need to depend on the daily or monthly load limits for Bluebird.
3. The existence of a no fee reload. Some Rite Aids have sold special MoneyPaks with no fees. They were common at Rite Aid stores in the Denver area up until a few weeks ago, and they may still be available near you. The normal cards have a fee of $4.95 with a maximum load of $500. That is still only one dollar more than Vanilla Reloads, so it doesn't change the value equation of "purchasing" points at a rate of $3.95/$4.95 per 500 that much. But if you can find some no-fee cards, it could be your ticket to earning points and miles on any credit card with no costs.
Sometimes the account access and bill pay interfaces are not as refined as Bluebird, but they are usually very functional and more than acceptable.
Choosing Compatible Reloadable Cards
With so many Green Dot-compatible reloadable cards available, what you should look for in one of these products? I'll get into the specific cards I use and why in my post tomorrow, but here are my criteria for choosing them:
1. Free electronic bill pay. Obviously, this is the easiest way to cash out Green Dot purchases. Most cards feature this, but always check their fee schedule since some charge you for this feature.
2. No monthly fees. You could still make this system work with a small monthly fee, but there are enough products available without a monthly fee that it is not necessary to pay it.
3. High load limits. Each card has different load limits that can vary per day, week, and month. The more you can load at once, the easier it will be and the less you'll be paying per point you "buy."
4. Referral bonus. Many cards offer a referral bonus of $10 to $20 when another person signs up using a code that you generate. This can come in handy when you recommend this product to a family member or a friend.
Tomorrow, I fill you in on my favorite prepaid cards that are part of the Green Dot network, reloading strategies to make the most of your points (and your time) as well as pitfalls to avoid.
[card card-name='Ink Plus® Business Credit Card' card-id='22129636' type='javascript' bullet-id='1']
TPG featured card
at American Express's secure site
Terms & restrictions apply. See rates & fees.
| 4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 4X | Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 5X | New! Earn 5X Membership Rewards® points on prepaid hotel stays booked through AmexTravel.com or the Amex Travel App. |
| 3X | Earn 3X Membership Rewards® points on flights booked through AmexTravel.com, the Amex Travel App, or purchased directly from airlines. |
| 2X | Earn 2X Membership Rewards® points on prepaid car rentals booked through AmexTravel.com or the Amex Travel App and cruises booked and paid through AmexTravel.com. |
| 1X | Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases. |
Pros
- Valuable dining and food-related credits
- Flexible rewards with airline and hotel transfer partners
- Multiple travel and purchase protections
- No foreign transaction fees
- Access to Amex Offers for additional savings (enrollment required)
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $8,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- New! Earn 5X Membership Rewards® points on prepaid hotel stays booked through AmexTravel.com or the Amex Travel App.
- Earn 3X Membership Rewards® points on flights booked through AmexTravel.com, the Amex Travel App, or purchased directly from airlines.
- Earn 2X Membership Rewards® points on prepaid car rentals booked through AmexTravel.com or the Amex Travel App and cruises booked and paid through AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- Pay It® lets you tap in the American Express® App to quickly pay for small purchase amounts throughout the month and still earn rewards the way you usually do. Plan It® gives you the option to split up big purchases into equal monthly payments with a fixed fee. You’ll know upfront exactly how much you’ll pay.
- Updated! $120 Dining Credit: Earn up to a total of $10 in statement credits monthly when you pay with the Gold Card at Grubhub (including Seamless), Buffalo Wild Wings, Five Guys, The Cheesecake Factory, and Wonder. This can be an annual savings of up to $120. Enrollment required.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year at over 10,000 qualifying U.S. Resy restaurants after you pay for eligible purchases with the American Express® Gold Card. That’s up to $50 in statement credits semi-annually. Enrollment required.
- $84 Dunkin' Credit: Earn up to $7 in monthly statement credits after you pay with the American Express® Gold Card at U.S. Dunkin’ locations. Enrollment required.
- $120 Uber Cash on Gold: Enjoy up to $120 in Uber Cash annually with your Gold Card. Just add your Card to your Uber account and you'll get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an Amex Card for your transaction.
- New! As an American Express® Gold Card Member, you can enjoy complimentary Hertz Five Star® Status. Enjoy benefits like skipping the counter at select locations, adding an additional driver at no additional cost*, and vehicle upgrades**. Benefit enrollment and Hertz Gold+ registration are required. *Additional drivers must meet standard rental qualifications and must be a spouse or domestic partner to qualify as complimentary. Other additional drivers subject to fees. **Benefits are subject to availability and vary by location. Additional Hertz program Terms and Conditions including age restrictions apply.
- Take advantage of a $100 credit towards eligible charges* at over 1,300 upscale hotels worldwide when you book The Hotel Collection through AmexTravel.com or the Amex Travel App **. *Eligible charges vary by property. **The Hotel Collection requires a two-night minimum stay.
- Book your travel through the Amex Travel App with added peace of mind – backed by American Express® service and support. Only for American Express® Card Members.
- Whenever you need us, we're here. Our Member Services team will ensure you are taken care of. From lost Card replacement to statement questions, we are available to help 24/7.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.