Ask Terry Questions Credit Card

Credit Card

By Terry Savage on April 29, 2023 | Credit/Debt

I recently made an overpayment on my AT&T account and received a refund via a prepaid MasterCard instead of a check. Is there some advantage for the company to issue a refund in this form? Are there any pitfalls I should be aware with this prepaid debit card? Thanks in advance for fielding my question.

Terry Says

I really don’t know why they used this method, except that many of their customers are considered “unbanked” — don’t have a checking account to deposit the money, and pay fees at currency exchanges. So they are probably doing these people a favor by giving a debit card.

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