Should You Get A Prepaid Credit Card
So, should you get a prepaid credit card? That depends on your situation. If youre looking for great cash back rewards credit cards, enticing APR credit card offers, or impressive travel perk cards , then there are better cards to meet your criteria. Prepaid credit cards are great for you, though, if:
- You cant open a free checking account or one with low fees
- You are tired of paying for unnecessary bank fees
- Youre a privacy hog, conspiracy theorist, or just someone who prefers not to link their online purchases to a bank account or credit card in their names
- Youre a parent who wants to help teach your kids responsible spending or give them a set allowance
Its also a good option if you dont have the best credit to get approval for a full-fledged credit card, and dont want to deal with the hassle of a secured credit card. The beauty of a prepaid credit card is that your credit wont be pulled and that you dont need to offer any collateral in order to get approved for the card.
Are Prepaid Debit Cards Right For You
Your financial future is important and can be impacted by the type of cards that you use, so its important to see if a prepaid debit card is right for you. Assess your spending needs and determine if a prepaid card will help you easily make purchases and keep track of your spending without paying too many fees.
A prepaid card may be a good option for you if you want to have emergency cash on hand, dont have access to a bank account, or want to get a payment card for your teenager.
Best For Direct Deposits: Netspend Prepaid
- Fees: Up to $9.95/month
- Availability: Almost everywhere Visa is accepted
- Rewards: Cash back from eligible purchases
Netspend Prepaid lets you get your paycheck up to two days faster, making it our top choice for prepaid debit cards that are best for direct deposits.
Reward details arent spelled out
What we like: The Netspend Prepaid card allows you to get paid up to two days faster with direct deposit. You can load money onto your account using mobile check deposit, reload at over 130,000 locations, or receive money from friends and family who have Netspend cards.
You can choose between two plans that have varying fee structures depending on your deposit habits. Pay-As-You-Go is the default plan, which charges no monthly fee, but $2.00 for each signature or PIN transaction. The Premier Fee Advantage Plan is the best value if you have a direct deposit of $500 or more. Youll pay $9.95 per month and transactions are included in the plan.
What we don’t like: Fees can add up quickly. There’s no way to avoid some kind of feeyou’ll either pay the monthly fee or transaction fees. And keeping your card active is key to avoiding the inactivity fee of $5.95, which applies if the card isnt used for 90 days.
- Monthly Fee: $0 for PAY-Go or $9.95
- Reload Fee: Up to $3.95 for cash reloads
- ATM Withdrawal Fee: $2.50
Also Check: Cabela’s Credit Card Bill Pay
Best Prepaid Debit Cards For May 2022
Prepaid cards work like debit cards without bank accounts, but you’ll need to pay attention to fees and limits.
Cynthia Paez Bowman
Cynthia Paez Bowman is a finance, real estate and international business journalist. Besides Bankrate.com, her work has been featured in Business Jet Traveler, MSN, CheatSheet.com, Freshome.com and SimpleDollar.com. She owns and operates a small digital marketing and public relations firm that works with select startups and women-owned businesses to provide growth and visibility. Cynthia splits her time between Los Angeles, CA and San Sebastian, Spain. She travels to Africa and the Middle East regularly to consult with women’s NGOs about small business development.
CNET editors independently choose every product and service we cover. Though we can’t review every available financial company or offer, we strive to make comprehensive, rigorous comparisons in order to highlight the best of them. For many of these products and services, we earn a commission. The compensation we receive and other factors, such as your location, may impact how ads and links appear on our site.
We are an independent publisher. Our advertisers do not direct our editorial content. Any opinions, analyses, reviews, or recommendations expressed in editorial content are those of the authors alone, and have not been reviewed, approved, or otherwise endorsed by the advertiser.
Why Is My Netspend Card Being Declined
There are a number of possible reasons why a purchase could be declined: You dont have enough money left on your card. You havent activated or registered your card. The address you gave to make an online or phone purchase is different from the address you have on file with your prepaid card provider.
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How Does A Prepaid Credit Card Work
Similar to traditional debit and credit cards, prepaid cards can be used to make online and in-person purchases. You can even use them to withdraw cash from an ATM. Some users use a prepaid credit card as a budgeting tool. When you load your prepaid card, you are unable to spend beyond that amount until you load the card again.
A few keynotes on prepaid cards to keep in mind:
- They are not debit cards. You may have heard a prepaid card referred to as a prepaid debit card. A debit card is linked to a checking account, a prepaid credit card is not.
- They are not credit cards. They work similar to credit cards but their purchases are not subject to interest charges and your history is not reported to any credit bureaus. Spending with a prepaid card does not influence your credit score, positively or negatively.
What Is The Best Prepaid Card With No Fees
Weve established that no prepaid card is 100% no-fee. But the one that comes closest to this ideal is the Bluebird® by American Express prepaid card. You can reload this card for free from several sources, including cash or a debit card transfer at a Walmart store, as well as mobile check deposit and direct deposit.
So, how exactly does American Express keep Bluebird from going bankrupt? They depend on a few fees and also brand loyalty for when you are ready to graduate to a credit or charge card. Those few fees include:
- A card fee when you buy one at retail locations.
- Each cash withdrawal from retail locations other than Walmart.
- Money in Minutes check capture by Ingo Money®. Money in 10 Days check capture is free.
- Out of network ATM fee .
- Ria® cash pickup.
One other cost savings shared by most prepaid cards is that you dont need a checking account. In fact, many unbanked and underbanked consumers rely on prepaid cards.
Read Also: Best Buy Citibank Credit Card Login
Best Prepaid Credit Cards In Canada In 2022
Prepaid cards in Canada arent actually credit cards at all. With a credit card you borrow money and pay it back later on, but with a prepaid card you load money onto the card first, and can only spend up to that amount.
This article looks at where to get prepaid cards in Canada by comparing some of the top providers. It also shows how Wise can help you to save money, if youre planning to use your card in different currencies.
Best For Cash Rewards: American Express Serve Cash Back
Courtesy of American Express
With the American Express Serve Cash Back, you can earn unlimited cash-back rewards on purchases and it comes with fraud protection.
No waiting period on rewards
90-day purchase protection
Card purchase fee if purchased in a store
What we like: If you plan to spend more than $800 each month on your prepaid card, the American Express Serve Cash Back should be in your wallet. Youll earn unlimited 1% cash-back rewards each time you shop with your prepaid card. Your cash rewards are added to your card right after you earn them, and you can redeem rewards at any time.
Enjoy early direct deposits for no additional fee, free in-network ATM withdrawals, fraud protection, and 90-day purchase protection on purchases up to $1,000. The cash reload fee varies by retailer and is up to $3.95.
What we don’t like: The card comes with a $7.95 monthly fee. You’ll have to spend more than $795 each month to break even on the fee and get value from your rewards. The monthly fee doesn’t apply in Texas, Vermont, or New York, making the card more attractive for people in those states.
- Card Purchase Fee: $3.95 in retail locations
- Monthly Fee: $7.95
- Reload Fee: $3.95 for cash reloads
- ATM Fee: $2.50 if you use a non-MoneyPass ATM
You May Like: Self Serve Valero
Why A High Limit Card
All banks and credit card companies operate under similar rules to the prepaid card industry. The federal government, in order to prevent mismanagement and money laundering, sets limits of how much money you can put into or take out of certain types of accounts on a daily or monthly basis. And prepaid cards are no different.
For everyday spending, this generally isnt an issue. After all, how often do you go out and spend multiple thousands of dollars per day? Probably not very often! But sometimes you may need to spend an oversized amount of money, and having a low balance or spend limit on your prepaid card can be frustrating.
Thats why weve compiled this list of prepaid cards with very high overall balance limits. These cards also have high daily spending limits and ATM withdrawal limits, compared with other similar prepaid cards. Check them out if you want to be able to carry a large balance on your prepaid debit card.
What Can A Prepaid Visa Card Be Used For
So do prepaid Visa cards work, or is it just a nice idea?
Well, let me make it clear that they definitely do work. They are issued by Visa, which has been around for years and is reliable. So it is definitely a real way to have money.
And it is very easy to use.
There are some prepaid Visa cards that can only be used in your own country. This depends on the card you get. You will be able to find out if this is the case by reading the terms, where you get the card.
But in general, you can use a prepaid card as a normal Visa card. You can use it in any shop both online and offline if the shop or service accepts Visa debit.
If you get virtual visa cards, you can of course only use these for online shopping. But with what you can buy online nowadays, it will definitely not be a problem to find a way to use your virtual Visa card, if you get one of these.
The advantage of the virtual card is that since it is electronic, you can usually get it within minutes or hours after ordering it, whereas the physical prepaid Visa card has to be sent by post, which can take weeks in some cases.
Be aware that sometimes the prepaid cards have an expiration date like any other card. So make sure to use the credit before it expires.
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Were Here To Make Your Job Easier
- Order, fund, and manage hundreds of Visa cards at once, to save yourself time and streamline your workflows
- Automated trust disbursements and reporting to give â¨you responsible oversight
- Your clients use our tools to check their balances â so theyâre not calling you!
The card administrator manages the True Link Visa Card. This administrator can be a family member, friend, professional, or someone else who helps manage anotherâs finances. Managing a True Link Visa Card means a variety of things, like being responsible for ordering the Visa card, putting the settings in place for how the funds can and cannot be used, adding money, scheduling fund transfers, updating account information, and more.
It depends. You can choose to block or allow withdrawals at ATMs based on the needs of the cardholder.
You can also block access to cash in a variety of ways including:blocking withdrawals inside a bank , blocking cash-back at time of purchase.
All True Link Visa Cards are protected from fraud under Visa’s Zero Liability Policyâ and Regulation E, so customers have recourse if they do experience fraud on their cards and report that to our team.
For those supporting someone in recovery, where additional budgeting support can help rebuild independence, the True Link Next Step Visa Card allows you to specify monthly, weekly, or daily budgets. Contact us to learn more.
What Is The Maximum Amount You Can Load Onto A Netspend Card
NetSpend has several prepaid cards within its portfolio, and they all have the same limits that allows a NetSpend cardholder to load as much as $15,000 into their card account.
Netspend will allow you to have up to $15,000 in your account at any time. You cannot deposit more than $15,000 within a 30-day period.
When using your card, you can spend up to $4,999 each day without restrictions.
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Can I Get An Overdraft With A Prepaid Card
Most service providers allow you to use what you have on the card. Upon exhausting the previously loaded money, you then need to reload again to continue enjoying the service. Some companies allow you to recharge your card online while others require you to visit their offices physically.
However, there can be a specific agreement with your service provider to allow you to borrow money and pay later. That is possible if you have a good record of paying debts.
Best Business Prepaid Cards For 2022
REVIEWED BY:Tricia Tetreault
Tricia has nearly two decades of experience in commercial and federal government lending. Her expertise is highlighted throughout small business loan content on Fit Small Business.
Andrée Kirk is a Staff Writer at Fit Small Business, specializing in Small Business Banking and .
This article is part of a larger series on Best Small Business Credit Cards.
Editors note: This is a recurring post with regularly updated card details.
When youre searching for the best prepaid card for your small business, consider your spend limit and how many cards youll need for your employees. Youll also want to look at the issuers fees and how convenient it is to reload the cards each time the balance is low. Youll want access to an online and mobile dashboard that allows you to control which merchants can accept the card and allows you to set dollar amounts for daily, weekly, or monthly spend. Since these arent credit cards and require no credit check, you can be approved for a prepaid card easily.
The five best business prepaid cards are:
- Bento for Business Visa® Debit Card: Best overall business prepaid card
- PEX Prepaid Visa®: Best for custom payment platform and reporting capabilities
- Brinks Business Expense Card: Best for first two cards for free
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The Canada Post Cash Passport Mastercard
Fees: $15 for the acquisition, $3 for top ups and 1.5% on each transaction
Spending limit: $4,000 of purchases per day
The Canada Post Prepaid Rechargeable Mastercard is ideal for use while traveling or for everyday online or in store purchases. You can acquire it from any Canada Post office and it is accessible without having to provide credit history or banking information. This card keeps your money safe with chip protection and a PIN that is independent from your bank account. You can load funds to the card and use them immediately. This Mastercard is perfect for shopping on US and international websites in local currencies seeing as it lets you choose between seven different currencies.
Mastercard charges $15 for the acquisition of the card and $3 for any top ups. The card has an inactivity fee of $2.80 per month if it is not used after 12 months. Regarding transaction fees, Mastercard charges 1.5% for domestic plan spending only. To acquire a Canada Post prepaid credit card, simply go to your post office with a valid photo ID. Clients can load Canadian dollars onto their card and lock in their exchange rate. This card can be reloaded at any Canada Post office near you, in cash or with a debit card.
Best For Walmart Shoppers: Walmart Moneycard
Earn 3% cashback at Walmart.com, 2% back at Walmart fuel stations, and 1% back at Walmart stores
Earn 2% annual interest on a linked savings account
No monthly fee if you load $500 or more each month
Free cash reloads via the Walmart MoneyCard App, direct deposit, mobile check deposit, and bank transfer
Cashback is capped at $75 per year
The standard monthly fee is $5.94 if you dont load $500 or more each month
All ATM withdrawals will incur a $2.50 fee
Mobile check deposit takes five days
The Walmart MoneyCard is one of the few prepaid cards that offer rewards, although there is an annual cap on them. Even if you cant get the monthly fee waived, the annual rewards are enough to pay for it. The major downside is the fees youll have to pay if you need to use ATMs to get access to your cash.
Also Check: Td Bank Visa Gift Card Balance Check
How To Load Funds
Once your Bento card is linked to your business bank account, you can transfer funds from the bank account to your Bento account online. Once your bank completes the transfer from its end, funds will be available in your Bento account within one to two business days. You can also send funds to your Bento account via wire transfer. Your bank may charge an outgoing wire transfer fee.