Where to buy a prepaid card and what to bring
You can buy a prepaid card at most retailers that sell financial products: Walmart, Target, CVS, Walgreens, and similar stores stock them at the checkout or customer service desk. Banks and credit unions also issue prepaid cards, often with different features and fee structures than retail versions. Online providers like NetSpend, Chime, and Green Dot sell cards directly through their websites and deliver them by mail.
You do not need a credit check, bank account, or Social Security number to buy most prepaid cards at a retail location. Walk in, choose the card you want, pay the activation fee (usually $5 to $10), and load money onto it at the register. Some cards let you activate them on the spot; others require you to call a number or visit a website within a few days. The process takes minutes.
For bank-issued prepaid cards, you may need to provide an ID and sometimes a Social Security number, depending on the bank's policy and the card's features. Cards that allow direct deposit or bill pay often have stricter verification requirements than basic load-and-spend cards. Check the issuer's website or call their customer service line before you go in to confirm what documents to bring.
Key Takeaways
- Prepaid cards are available at retail stores, banks, credit unions, and online providers, with no credit check required for most retail versions.
- Activation fees range from $5 to $10 at retail locations, and you load money onto the card immediately or within a few days of purchase.
- Bank-issued prepaid cards may require an ID and Social Security number, while retail cards often do not.
- Monthly maintenance fees, reload fees, and ATM withdrawal fees vary by card and can add up if you use the card frequently.
- Direct deposit and bill pay features are available on some prepaid cards but may require additional verification or have higher monthly costs.
Understanding prepaid card fees before you buy
Prepaid cards charge fees at multiple points: activation, monthly maintenance, reloads, ATM withdrawals, and balance inquiries. Activation fees are one-time charges of $5 to $10 paid when you buy the card. Monthly maintenance fees range from $0 to $10 per month and are charged whether you use the card or not. Some cards waive the monthly fee if you load a certain amount each month or set up direct deposit.
Reload fees apply when you add money to the card after the initial purchase. Retail reloads (adding cash at a store) typically cost $2 to $3.50 per transaction. Direct deposit and bank transfers are usually free. ATM withdrawals cost $1 to $3 per transaction at out-of-network ATMs; in-network withdrawals are often free. If you check your balance frequently, some cards charge $0.50 to $1 per inquiry.
The total cost of owning a prepaid card depends on how you use it. A card with a $10 monthly fee but free ATM withdrawals might cost less than a card with no monthly fee but $2 per ATM withdrawal if you withdraw cash frequently. Compare the fee schedule of cards you are considering and estimate your monthly usage to find the lowest-cost option.
How to load money onto your prepaid card
The most common way to load money is at a retail location where you bought the card. Bring cash to the customer service desk, tell them the amount you want to load, and they will add it to your card. This usually takes a few minutes and costs $2 to $3.50 per transaction. You can also load money at other retailers that partner with the card issuer, though not all locations accept all cards.
Direct deposit is free and requires no transaction fee. You provide your employer or benefit administrator with the card's routing number and account number (found on the card or in the issuer's app), and they deposit your paycheck or benefit payment directly to the card. This is the cheapest way to load money if you receive regular deposits.
Bank transfers and ACH transfers from your checking account are usually free and take one to three business days. Some cards also let you transfer money from another prepaid card or link a debit card to load funds instantly. Check your card issuer's app or website to see which load methods are available and whether any carry fees.
Prepaid cards versus other payment methods
Prepaid cards work like debit cards: you can only spend the money you have loaded onto them, so you cannot go into debt or carry a balance. This makes them useful if you want to control spending or avoid overdraft fees. Unlike debit cards linked to a bank account, prepaid cards do not require a bank account and do not report activity to credit bureaus, so they do not build credit history.
Compared to cash, prepaid cards offer fraud protection and a record of your spending. If your card is lost or stolen, you can report it and the issuer may refund unauthorized charges. Cash offers no such protection. Prepaid cards also let you make online and phone purchases, which cash does not.
Compared to credit cards, prepaid cards carry no interest charges because you cannot borrow money. Credit cards report payment history to credit bureaus and can build your credit score if you pay on time. Prepaid cards do not. If you are trying to build credit, a secured credit card (which requires a cash deposit but reports to credit bureaus) is a better choice than a prepaid card.
Checking your balance and monitoring transactions
Most prepaid card issuers offer a free mobile app where you can check your balance, view transaction history, and set up alerts. Download the app, log in with your card number or account credentials, and you can see your balance instantly. Some apps let you freeze your card temporarily if it is lost or stolen, which is faster than calling customer service.
You can also check your balance by calling the customer service number on the back of your card. This is free on most cards. Some issuers charge $0.50 to $1 per balance inquiry at an ATM or through an automated phone system, so check your card's fee schedule before using those methods.
Review your transaction history regularly to spot unauthorized charges or errors. If you see a transaction you did not make, contact the card issuer's customer service line within 60 days. Most prepaid cards offer fraud protection similar to debit cards, meaning the issuer will investigate and may refund the charge if it was unauthorized.
Closing your prepaid card and what happens to leftover money
To close a prepaid card, contact the issuer's customer service line or use their mobile app. Some cards let you close the account online; others require a phone call. Closing is free on most cards. Once you close the account, you cannot use the card, but any money remaining on it belongs to you.
The issuer will refund your remaining balance by mailing you a check, depositing it to a bank account you provide, or issuing a new card with the balance transferred. The method depends on the issuer's policy. Check your card's terms or call customer service to find out how they handle refunds. Some issuers take one to two weeks to process the refund after you close the account.
If you lose your card and do not close it, the issuer will eventually close it for inactivity (usually after 12 months with no transactions). The remaining balance is then subject to state unclaimed property laws, which vary by state. To avoid losing your money, close the card yourself or contact the issuer if you have not used it in several months.
Prepaid cards with special features
Some prepaid cards offer bill pay, which lets you pay bills directly from the card without writing checks. Others include budgeting tools that let you set spending limits by category. A few cards offer cash back at certain retailers or rewards points on purchases, though these are less common on prepaid cards than on credit cards.
Cards designed for specific purposes—such as student prepaid cards, teen prepaid cards, or cards for people without bank accounts—may have different fee structures or features. Student cards sometimes waive monthly fees or offer free ATM withdrawals. Teen cards often include parental controls that let a parent set spending limits or receive notifications of purchases.
If you receive government benefits like unemployment, Social Security, or TANF (Temporary Assistance for Needy Families), your state may offer a specific prepaid card for benefit distribution. These cards are often free or low-cost and are designed to work with direct deposit of your benefits. Contact your state's benefit agency to learn whether a state-issued card is available to you.
Frequently Asked Questions
Can I use a prepaid card to build credit?
No. Prepaid cards do not report to credit bureaus, so using one does not build your credit history or credit score. If you want to build credit, consider a secured credit card, which requires a cash deposit but reports your payment history to credit bureaus.
What happens if my prepaid card is lost or stolen?
Contact the card issuer immediately and report it lost or stolen. Most issuers will freeze or cancel the card and issue a replacement. If unauthorized charges were made, report them within 60 days and the issuer will investigate. Prepaid cards offer fraud protection similar to debit cards, though the exact coverage varies by issuer.
Can I withdraw money from my prepaid card at any ATM?
You can withdraw from any ATM, but out-of-network withdrawals usually cost $1 to $3 per transaction. In-network ATMs (operated by the card issuer's network) are often free. Check your card's fee schedule or app to find in-network ATMs near you.
Do I need a bank account to get a prepaid card?
No. Prepaid cards do not require a bank account. You can buy one at a retail store with cash and start using it immediately. This makes prepaid cards useful for people without access to traditional banking.
How long does it take to receive a prepaid card ordered online?
Delivery times vary by issuer, typically ranging from three to seven business days. Some issuers offer expedited shipping for an additional fee. Check the issuer's website for estimated delivery times before you order.