For those that are unfamiliar with Facecard, likely you won’t be for long, thanks to the name recognition provided by Facebook, the popular social media network. Facecard is a pre-paid card issued by MetaBank, who launched the program in May of 2008 as an alternative to debit and credit cards. Can you say “marketing genius”?

According to the card issuer, Facecard “promotes responsible spending and provides real time discounts at the time of purchase called Prewards.” The card to date has been used primarily by students, whose parents simply load their Facecards with cash using their computer or mobile phone, while utilizing the parental controls to monitor their spending habits with a web-based dashboard. The card can be used anywhere Mastercard is accepted, and does not have any risk of overdraft fees. A good analogy might be that it is like giving kids an “electronic” allowance of sorts, where you can monitor and even regulate their spending habits, while perhaps giving them some controlled training in handling a real credit card in the future.

In early October, Facecard announced a new Facebook app that card holders can download directly. The app is called Facecard, and allows you link your Facebook account to your Facecard and use it to transfer money to other Facebook users (similar to PayPal) — but the advantage is it is built right into your social network. With the new app, money can be disbursed to others in three new ways:

• Sending “money messages”
• Donating money toward another Facebook user’s “wish list”
• Sending money toward a real “thinking of you” gift

As far as the cost for this card, according to Facecard a new fee structure was just implemented as of the fourth quarter of 2009. The charge to sign up is $5 (previously free), with a monthly fee of $3 required to maintain your account. The monthly fee can be waived if you load your paycheck via direct deposit on to the card, or if you spend at least $100 a month using your Facecard. 

Face it (sorry, couldn’t resist); it was inevitable these two would team up. The pre-paid product certainly seems to be doing well and deserves its own place in the large “deck of cards” available to consumers. The fees do not seem to be too outrageous, and the convenience a worthwhile benefit for many individuals. Readers, what is your opinion of this product? Has anyone out there used it in conjunction with Facebook? Share you experiences with a comment if so!

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