Prepaid Cards (2024)

FAQs

What is the best prepaid card to get? ›

You can buy a prepaid debit card from a retailer, bank, credit card company or other financial services provider. What are the downsides of using a prepaid card?

A prepaid card is a card you can use to pay for things. You buy a card with money loaded on it. Then you can use the card to spend up to that amount. A prepaid card is also called a prepaid debit card, or a stored-value card. You can buy prepaid cards at many stores and online.

Disadvantages. Pre-paid debit cards do not help you build credit. Many pre-paid debit cards charge fees before you even start using them. There is usually a monthly fee and fees on common transactions such as ATM withdrawals, card replacement, direct deposit, and reloading the card.

The Bluebird American Express Prepaid Debit Account stands out for charging no monthly fee, as well as no cash reload fee at Family Dollar locations. Card members also get access to purchase and fraud protection, Amex Offers, 24/7 customer service, roadside and emergency assistance, as well as Amex experiences.

Some prepaid debit cards let you load up to $15,000 onto your card, while others may have a lower maximum amount. For example, the Regions Now Card has a $7,500 balance limit.

Prepaid cards can be declined because you don't have sufficient funds in your account, the card hasn't been activated, the merchant doesn't accept the network's cards, or you have exceeded your spending limits. Any information you provide to the merchant must also match what's on file with the prepaid card issuer.

Prepaid cards can be a good way to stay out of debt because you can't spend more than the amount you've already deposited. They're also a useful budgeting tool. Even if you have a checking account, you could put a fixed amount on a prepaid card each month for certain spending categories, such as dining out.

There are only a few downsides to using prepaid cards, but they are significant. Prepaid cards come with fees. Cardholders may have a lot of fees, including activation fees, transaction fees, ATM withdrawal fees, reloading fees, monthly fees, or inactivity fees. Check the fine print on the card for fee types.

Why do you want to avoid prepaid cards? ›

Most prepaid cards charge costly fees that can include a transaction fee for every time you use the card. Other fees to look out for include annual or monthly maintenance fees, cash reload fees, inactivity fees, foreign transaction fees, balance inquiry fees and more. Won't help build credit.

And if you're someone who struggles to spend within your budget, a prepaid card can help you learn how to manage money. Prepaid cards provide a relatively simple way to pay for purchases without taking out a line of credit or using a bank account.

You can deposit up to $15,000 maximum on your NetSpend Visa Prepaid Card. Although this is a low amount compared to the $100,000 maximum balance allowed on a Bluebird prepaid debit card, it should be enough for most individuals.

There are few differences between Mastercard gift cards and Visa gift cards in relation to their usage and benefits. Both are preloaded, non-reloadable, widely-accepted cards that provide flexibility in gift-giving and spending. They share some limitations, which are: Expiry Date.