Doctor of Credit warned us yesterday. Nationwide Bank had changed the terms on their Visa Buxx cards. Previously, you could load Nationwide Buxx debit cards online with a credit card for a very low fee: $2 for each $500 load. That made Nationwide Buxx a great option for manufacturing spend. According to Doctor of Credit, the new terms state, in part:
When a parent orders a Nationwide Bank Visa Buxx Card for the first time, the minimum card value is $20.00 and the maximum card value is $100.00. After the Teen receives the Card, the minimum reload value is $10.00 and the maximum reload value is $200.00 per card, per week.
Since Nationwide charges $2 per load, a $200 limit means that reload fees increase to 1%. Suddenly loading Nationwide Buxx isn’t much better than buying regular Visa gift cards (except that you can have your name on Buxx cards and withdraw money from ATMs).
The question left unanswered in Doctor of Credit’s post was whether or not existing cardholders would be grandfathered in under the old terms. Unfortunately, it looks like the answer is no. A reader received a letter today stating that the new terms would be in effect as of start of business on January 11, 2016.
Key points from the letter:
- New terms are effective from start of business 11 January 2016
- The maximum initial load on value is $100
- The maximum reload value is $200 per week
I expect that all other current customers will receive similar letters very soon. Make sure to do your final $500 loads ASAP.