A prepaid debit card shares some similarities with a regular bank card. You can use it to pay bills, withdraw money from an ATM, and set up direct deposit. Unlike a regular bank card, you don’t need a bank account to use a prepaid debit card.
After you purchase a prepaid debit card, your next step is to load it with money. The amount you load onto the card is the amount you can spend. For instance, if you load $200, you can spend $200. Once you use up all of the money on the card, you can choose to reload it with more money or cancel the card.
Best prepaid debit cards
| Card Purchase Fee | Monthly Fee | Reload Fee | ATM Fee | Bonus | Best For | |
|---|---|---|---|---|---|---|
$1.00 | Up to $5.94 | Up to $4.95 | $2.50 | Earn up to $75 per year in cash back | Frequent Walmart Shoppers | |
Green Dot Prepaid Visa® Card | $1.95 | Up to $7.95 | Up to $5.95 | $3.00 | $25 reward for direct deposit tax refund | Simplicity |
Bluebird American Express | $0 to $5 | None | Up to $3.95 | Up to $2.50 | None | Low-fee |
FamZoo Prepaid Card | $0 for the first 4 cards,$3.00 for additional cards | $2.50 to $4.33 if prepaid, $5.99 if billed monthly | Up to $4.95 | $0 | Refer a friend for one month of free on prepaid account | Families |
PayPal Prepaid Mastercard® | Up to $4.95 | $4.95 | Up to $3.95 | $2.50 | Refer-a-Friend rewards $20 bonus | PayPal Users |
American Express Serve Free Reloads Prepaid | Up to $1.50 | Up to $6.95 | $0 (in network), Up to $3.95 (out of network) | Up to $2.50 | Free cash loading | Free Reloads |
MOVO Cash Card | Up to $9.95 | $4.95 | Up to $3.95 | Up to $4.95 | None | Digital Experience |
Walmart MoneyCard®
The Walmart MoneyCard® is best for frequent Walmart Shoppers. With Walmart MoneyCard®, you can earn cashback on every Walmart purchase of up to $75 annually. You can also earn an annual interest of 2% on up to $1,000 in savings.
Green Dot Prepaid Visa® Card
Green Dot is not only a prepaid debit card, it’s also a place to receive direct deposits, pay for items online and do other similar transactions that used to require a bank account. For people who have trouble getting a credit card or for people who don’t want to risk overdrafting a checking account, Green Dot is a convenient way to make transactions without cash.
Bluebird American Express
The Bluebird American Express prepaid debit card makes our “best of” list thanks to its low fees. There is no purchase fee when you sign up online, no monthly fee, free online bill pay, free ATM withdrawals at over 30,000 MoneyPass ATMs, and free reloads when you add cash at Walmart. Transfers are also free when you transfer money to other Bluebird account holders.
FamZoo Prepaid Card
FamZoo Prepaid Card wins our top spot for best family prepaid card because it is specifically designed for family use. FamZoo prepaid cards use a subscription model where the longer you prepay, the more you save. You can choose to prepay for six, 12, or 24 months. When it comes to reloading there are many free options including direct deposit and bank transfers. FamZoo also offers a card lock feature that allows you to lock the card if it is lost, stolen or if you’re spending too much.
PayPal Prepaid Mastercard®
The PayPal Prepaid Mastercard® is a good option for those that frequently use PayPal. When you purchase the PayPal prepaid card, you are automatically enrolled in the $4.95 per month fee plan. You can reload your card for free by setting up direct deposit or by transferring money from your PayPal account. Finally, there are more than 130,000 in-person reload locations available, but you will pay a reload fee.
American Express Serve Free Reloads
The American Express Serve Free Reloads Prepaid Card wins for best free reloads. All card reloads are free when you reload at an “in-network” location. There are currently over 45,000 in-network locations, including CVS/pharmacy, Walmart, and Rite Aid. It is also free to reload by transferring money from your bank account to your card.
MOVO Cash Card
The MOVO Prepaid Debit Card wins for the best digital prepaid debit card as it provides a completely virtual and contactless payment experience from sign-up to spending. While MOVO is a digital card, it is possible to request a physical debit card for an additional fee of $5.95.
When you should get a prepaid debit card
Prepaid debit cards can be a great choice for those who don’t have a credit card or don’t want a credit card. If you’ve had difficulty managing credit in the past, you can use a prepaid debit card in place of a credit card for things like online shopping. Since you can only use the amount of money loaded on your card, a prepaid debit card can also help you to stay on budget.
If you have bad credit and can’t get a credit card, you may be happy to learn that a prepaid debit card doesn’t require any kind of credit check. On the flip side, you can’t use a prepaid debit card to establish or improve your credit.
While a regular debit card requires you to open a checking account, a prepaid debit card does not. If you don’t have a bank account due to a negative banking history or because you simply don’t want one, a prepaid debit card might be a good option.
Some prepaid cards allow you to add authorized users. An authorized user is someone you allow to spend money on your prepaid debit card. For instance, a parent might request an authorized user card for their child. The parent can decide how much money to load on the card and can keep control of the account. The child gets access to a debit card and money. This provides a great way for kids to learn about money and budgeting.
Before requesting an additional card, check to see if there is a fee associated. If you choose to add an authorized user, this person will need to verify their identity by registering online or calling customer service.
How to cancel a prepaid card
It is possible to cancel a prepaid card whenever you want. To cancel, you can contact the card issuer. You can also ask to see if there is a fee associated with canceling the card. If there is money remaining on the card when you cancel, the issuer might charge a fee to issue you a check. To avoid this scenario, aim to withdraw all of the money from your card before you cancel. If you leave money on the card and then cancel it, there is also a chance that you could lose your money.
Prepaid Debit Cards Alternatives
A secured credit card is an alternative to a prepaid debit card. Similar to a prepaid debit card, you have to put down a deposit to secure your credit line. The amount of money you deposit is typically equivalent to the card's credit limit. For instance, if you are approved for a secured credit card and you put down a deposit of $500, your credit limit is $500.
Unlike a prepaid debit card, a secured credit card offers the benefit of helping you to establish or build your credit.
Some secured credit cards also give you the ability to earn rewards or cashback.
Frequently asked questions (FAQs)
What is a prepaid card?
A prepaid debit card allows you to perform many of the same functions of a regular bank card, such as paying bills, withdrawing money from an ATM, and setting up direct deposit. Unlike a regular bank card, a prepaid debit card does not require you to have a bank account.
To use a prepaid debit card, you first have to load the card with money. Once you use the money, you can choose to reload the card online, at an ATM, or at a participating retail store.
Major credit card brands, including Visa, Mastercard, and American Express issue prepaid debit cards. Depending on the card you choose, it may come with FDIC insurance.
While a credit check is not required to get a prepaid debit card, you also can’t use it to build credit.
How do prepaid debit cards work?
To use a prepaid debit card, you first have to load money onto the card. You can do this through direct deposit, transferring money from a checking account or another prepaid card, adding funds at a participating retail store, or purchasing a “reload pack.”
The amount you can spend is typically equal to the amount you load onto the card. Once you have money on your card you can use it to withdraw cash, pay bills, or make in-store or online purchases.
Once you have used all of the money on your prepaid debit card, you can reload it with more money. Many prepaid debit cards charge a reload fee. With some cards, you can avoid fees by reloading through direct deposit. If you don’t reload your card, it will stop working unless you have overdraft protection.
Overdraft protection is an optional feature that covers your purchase if you exceed the amount of funds available on your card. This feature often comes with high fees.
If you no longer want to use your card, you also have the option of canceling it.
How much do prepaid debit cards cost?
The cost of a prepaid debit card can vary depending on the type of card and where it is purchased (e.g. online vs. retail store). Some of the most common fees include a monthly fee and a reload fee. A monthly fee is a fixed fee you pay each month even if you don’t use the card. The monthly fees of the cards on this list range from $0 to $6.99.
Retailers might charge a reload fee to put more money on your card. However, most cards offer free options to load your card, including direct deposit. The reload fees included on this list range from $0 to $5.95.
Some other fees associated with prepaid debit cards can include:
- Transaction fees: This is a fee charged each time you use the card for certain types of transactions.
- ATM withdrawal fees: This is the fee charged when you take money out at an ATM. You may pay higher fees depending on whether you use an in-network or out-of-network ATM.
- Balance inquiry fees: This is a fee associated with checking your card balance. Most of the time, there is a free way to check your balance (e.g. online). If you call customer service or check your balance at an ATM you could incur a fee.
- Card replacement fee:. If your card is lost or stolen, you could incur a fee to get a new one.
- Additional card fees: If your card issuer allows additional cards for “authorized users,” you may need to pay an additional fee. When you add an authorized user, you give permission for another person to spend your money.
- Card cancellation fees: While you can cancel your card at any time, you may be charged a fee. Even if you aren’t charged a fee for canceling, if you have a balance remaining on your card, you may have to pay a fee before the issuer will send you a check with the balance.
Where can you get a prepaid card?
You can get a prepaid debit card from a retail store such as a grocery store or drug store. You can also purchase a card from some banks and credit units, or order it online. After purchasing a prepaid card it’s important to register it so you have some protection in case your card is lost or stolen.
What prepaid card doesn't require a social security number?
Prepaid cards that don’t require a social security number include Bluebird American Express and Serve American Express. You can provide your taxpayer identification number to register your card in place of a social security number.
Prepaid card issuers are required by law to ask for personal information in order to verify your identity. When you register a prepaid debit card, you might be asked for the following information:
- Full name
- Address (no PO boxes)
- Date of birth
- Social Security number
- Taxpayer identification number
