Widely accepted online and in stores, they are ideal for managing spending and budgeting. There are lots of different prepaid debit cards out there, which all offer different features and fees. Use this guide to get started, and you’re sure to find the perfect card for your specific needs.

Examples of Prepaid Cards

Plus, you have to pay an overdraft fee for each transaction that overdraws your account. Most prepaid cards can be used to shop anywhere that debit and credit cards are accepted. This includes making online purchases and shopping in stores, restaurants, entertainment venues, and more.

Can a Prepaid Card be Reloaded?

Prepaid cards don’t have access to your individual or business account like debit cards or an individual line of credit, like credit cards. They offer an award-winning mobile bank account and debit card with no credit check. No, prepaid cards do not require a credit check as they are not linked to a line of credit. They are an alternative way to manage your money without needing a good credit score. Prepaid cards work by letting you add funds onto the card, either through a direct deposit from a bank account or by loading it with money.

  • Our ZEN Mastercards are linked to multi-currency accounts that are managed through a simple mobile app.
  • And, some postpaid providers will offer special deals and financing that might help you pay for your phone over time.
  • Complete the application form, submit the required KYC documents, and you may receive your card immediately or within a few days.
  • And unlike credit cards, prepaid credit cards don’t come with a line of credit.
  • In order to get a debit card, you’ll need to open a checking account.
  • Instead of carrying stacks of cash while shopping or traveling, you just need one single card.
  • To use a prepaid card, users must first load funds onto the card.

Understanding the FDIC insurance limit: safeguarding your deposits

They can also be called stored-value cards, pay-as-you-go cards or, more formally, general-purpose reloadable prepaid cards. Managing your prepaid card is more like managing a checking or savings account than managing a credit card. You don’t have to worry about monthly minimum payments, finance charges, due dates, or late payments. prior year products Your spending limit equals whatever dollar amount your card currently holds.

Key things to know about prepaid cards

If a retailer normally accepts a Visa credit card, for instance, you’ll be able to use your Visa prepaid card there too. Parents who are looking to teach their kids how to use plastic in a relatively low-risk way may want to opt for a prepaid card over a debit or credit card. And if you’re someone who struggles to spend within your budget, a prepaid card can help you learn how to manage money. By comparison, a credit card gives you a credit limit against which you can borrow for purchases. You have the option of repaying your purchases with monthly installments or all at once. However, as the name indicates, you can’t use it unless you’ve prepaid money onto the card.

If your bank plummets, the government will offer up to $250,000 of your money that was in your bank account. Some individuals may even live a life with no debt or credit scores. On the other hand, those who have a record of writing bad checks have a difficult time with certain card issuers. There are usually initial charges issuers place in order for you to get a prepaid card. We recommend that you monitor our comparison chart for special deals. Some issuers will waive the initial fee if you deposit a certain amount, such as $100.

There are a variety of different types of prepaid cards in the market from issuers. It how to set up direct deposit for employees pays to know the pros and cons of each, as well as your financial goals, before using it. With this guide, you’ll know what to look for — and what to avoid — when it comes to prepaid cards.

  • Prepaid cards are a great alternative to carrying cash and are generally considered to be much safer.
  • The amount of money you can load onto a prepaid card will depend on the card issuer and bank account you’re transferring money from.
  • This information may include links or references to third-party resources or content.
  • The consumer protections aren’t as significant as traditional credit or debit cards, though many prepaid cards are provided and covered by FDIC-insured banks.
  • Prepaid cards typically have an expiration date, though they’re good for several years.
  • We’ve put together a list of the best banks that don’t use ChexSystems or require a credit check.

Enjoy cost-effective international payments with preferential exchange rates.

Using CreditWise to keep an eye on your credit won’t hurt your scores. You can also get free copies of your credit reports from all three major credit bureaus at AnnualCreditReport.com. If you decide a prepaid card is right for you and are shopping around, there are a few things you should consider. It’s important to find out what fees you’ll have to pay and compare multiple cards to find the one with the lowest fees. When it comes to convenience, you’ll want to ensure the card has a large ATM network at locations near you and that it’s free to how do i start a nonprofit organization use at the ATM. You can even use some prepaid cards to withdraw cash from an ATM.