Prezzy Card Review Reveals Excessive Fees
A report by MoneyHub highlights eight ways Prezzy Card clips the ticket and leaves a cardholder with a lot less than the upfront cost.
An investigation by MoneyHub into Prezzy Card has revealed a number of different fees and limitations which have the potential to inadvertently whittle down a balance. The findings came about after MoneyHub published a report in late February 2018 covering Prezzy Card fees. The findings were widely circulated in the media, aiding the consumer-led campaign which successfully saw the expiry date of Prezzy Cards extended from 12 to 24 months for all new cards issued from 1 March 2018 onwards.
MoneyHub’s Senior Researcher Christopher Walsh said “Currently Prezzy Card charges eight different fees, and not all are clear to the consumer. First off, there’s a Card purchase fee ($5.50-$5.95), and a postage and handling fee ($2.50) if you buy online. You’ll also pay 1.59% of the dollar value added if you pay by a credit card, as well as a credit card surcharge on the card purchase and postage fees – essentially fees on fees. Once the card is ready to use, holders pay a customer service fee ($0.50 per call) or $2.00 to talk to a person. The upfront fees are uncomfortably steep for something that is usually purchased as a gift”.
“If you lose your card, there’s a $10 replacement fee, and if you dispute a transaction there’s a $15 fee for that. Also, overseas purchases deduct a hefty 3.5% of the transaction value, close to twice what Kiwbank (the owner of Prezzy card) charges for a normal credit card”.
“Despite the extension of card validity from 12 months to 24 months for all cards issued from 1 March 2018, the biggest catch was that Prezzy Card balances still expired. Consumers need to be aware that any money would be deleted after 24 months and the card would return to a $0 balance.”
Beyond the outline of fees, the report also features tips for Prezzy Card recipients. These included taking note of the expiry date, avoiding overseas use, keeping it safe until all purchases have been delivered and binning it once the balance is $0 rather than topping it up.
MoneyHub believes the information would prove to be useful for any New Zealander considering a Prezzy Card purchase. The dedicated page would be updated on an ongoing basis.
Story link: Prezzy Card