8 On Your Side: The Risks of Prepaid Credit Cards - 8 News NOW

8 On Your Side: The Risks of Prepaid Credit Cards

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LAS VEGAS -- There's a new trend in managing your money in southern Nevada. More and more folks are saying goodbye to their banks and putting all their money on pre-paid credit cards, but is this a safe way to secure your money?

Walk into any Wal-Mart and you can find a kiosk full of prepaid cards. They look like credit cards and they work like credit cards. They just don't protect you like credit cards.

"I was very, very upset," said Shelia Cefali.

She had all paychecks deposited onto a Wal-Mart money card. She thought her money was safe until a $30 charge wouldn't go through right after her paycheck cleared. She immediately checked her account online and saw there had been 106 transactions, most of them for about $11to foreign phone companies.

"They left $8," she said. 

Cefali immediately picked up the phone dialed the number on the back of her card, thinking she could get the issue resolved.

"I thought everything with Visa and Mastercard's logo was secured."

They are secure, but not in the same way as a credit card. If your credit card is hacked, you get your money back immediately. If your Wal-Mart money card is hacked, it could take days, weeks or months.

Cefali tried to handle her case on her own and after 10 days Wal-Mart reveres ed 30 charges totaling $70, but she was still out thousands and Wal-Mart said the case is closed.

"They reversed the charges," she said.

Cefali continued to fight and asked 8 On Your Side to to get involved. About three-quarters of her money was then returned, but she's still waiting for the rest.

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