Prepaid cards are a relatively simple way for you to pay for purchases without opening a credit card or bank account. They work similar to a debit card in that you can use a prepaid card to pay bills, set up direct deposit and use mobile check deposit. You'll even receive the same $250,000 FDIC insurance that protects your deposits if your bank fails. Show
One reason to opt for a prepaid card over other forms of plastic is that it's a relatively low-risk way to manage your money. Parents can use prepaid cards as a way to teach their kids about money before making them an authorized user on their credit card. And if you struggle to stick to a budget, you can use a prepaid card to help monitor your spending, with the goal of eventually graduating to a credit or debit card. If you're interested in opening a prepaid card, there are wide variety to choose from. To help make the process easier, Select rounded up the best prepaid cards, and below we've broken down everything you need to know before you sign up. (See our methodology for more information on how we chose the cards.) Best prepaid cards
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Best prepaid card with no monthly feeBluebird® by American ExpressInformation about the Bluebird® by American Express has been collected independently by CNBC and has not been reviewed or provided by the issuer of the card prior to publication.
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Best prepaid card for cash backAmerican Express Serve® Cash BackInformation about the American Express Serve® Cash Back has been collected independently by CNBC and has not been reviewed or provided by the issuer of the card prior to publication.
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Best prepaid card for cash reloadsAmerican Express Serve® FREE ReloadsInformation about the American Express Serve® FREE Reloads has been collected independently by CNBC and has not been reviewed or provided by the issuer of the card prior to publication.
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Best prepaid card for familiesFamZoo Prepaid Card
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Best prepaid card for Walmart shoppersWalmart MoneyCardInformation about the Walmart MoneyCard has been collected independently by CNBC and has not been reviewed or provided by the issuer of the card prior to publication.
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Best prepaid card for PayPal usersPayPal Prepaid Mastercard®
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What is a prepaid card?Similar to a gift card, you add value to the prepaid card before you can use it, which is essentially like prepaying for future purchases. But prepaid cards come with a few more bells and whistles, like the ability to set up direct deposit and check your balance on a mobile app. They also require more attention since you can incur fees for simply having a card or reloading it with more cash. Prepaid cards can be used to make purchases and pay bills, just like debit or credit cards. They are accepted nearly everywhere since they are often backed by a major card network, such as Visa, Mastercard or American Express. Issuers won't do a credit check when you open a prepaid card, but you also don't build a credit history when you use one. One disadvantage of using a prepaid card is that you can only complete transactions up to the amount you have loaded onto it. If you add $200 to your prepaid card, you can only spend up to $200. Any purchases you attempt to make exceeding $200 will be declined until you load more money onto your card. Additionally, there's often a cap on how much money you can have on your card. The cards on this list have limits ranging from $5,000 to $100,000. That said, the cap is generally pretty similar to a credit limit on a credit card. Do prepaid cards come with fees?Before you open a prepaid card, it's important to understand what fees may be associated with them. Most prepaid cards charge monthly maintenance fees around $10, which is similar to checking account fees that can cost up to $15 a month. But you may also pay a fee to open your prepaid card, typically around $5. You can also expect to incur an ATM fee, reload fee and foreign transaction fee with many prepaid cards. The PayPal Prepaid Mastercard® can cost up to $4.95 to purchase the card ($0 if you get the card online) and charges you $4.95 a month to use the card. You may also incur ATM withdrawal fees of $2.50, check deposit fees ranging from $0 to 5% of the total check amount and a 4% fee on purchases made outside the U.S. There are options out there with minimal fees. Bluebird® by American Express has no card opening fee when you open an account online (otherwise it costs up to $5), no monthly fee and no foreign transaction fees. While there's typically no minimum balance requirement, you could get stuck paying a monthly fee you regardless of your balance. Make sure you're familiar with your card's terms of service and reach out directly to your card issuer for more information. Where to get a prepaid cardYou can often find prepaid cards at checkout lanes when you’re at the supermarket or retailers like Walmart, typically next to gift cards. When you get a prepaid card in-store, you’ll often incur a card opening fee around $5. As a cheaper alternative, opt to get a card online, which is often free. How to add money to a prepaid cardYou can load money onto your prepaid card in a variety of ways, including:
You can check your account balance online, via your card issuers' mobile app or over the phone. When you should get a prepaid cardPrepaid cards are a good option for parents who want to give their kids spending money without handing them cash that could potentially get lost. You can request a new prepaid card if it goes missing, and many card issuers allow you to lock your card to prevent unauthorized use. And since you can incur overdraft fees with a debit card or quickly run up a balance on a credit card, a prepaid card can help you limit your kids’ spending to the amount loaded on the card. Choosing a prepaid card could be a good choice for you if you have a history of overspending. A prepaid card might be a better alternative than a debit or credit card, as it can force you to stick to a budget by declining purchases that exceed the balance in your account. But make sure it makes financial sense. Even though you're saving on potential interest charges or overdraft fees, the monthly fees on a prepaid card can get very expensive, too. If you decide that using a prepaid card makes it easier for you to manage your finances, make sure to sign up for a no-fee card. How to cancel a prepaid cardWhen you decide that you no longer want your prepaid card, whether that's because you're opting for credit or debit, you'll need to take some action. You can't just forget about the card because you could still incur monthly fees. In order to cancel a prepaid card, you'll first need to withdraw all of the money currently in your account. You can typically withdraw money at an ATM, through a transfer to another account or by requesting a check. Once your balance reaches $0, you can call your card issuer to cancel your account. Our methodologyTo determine the best prepaid cards on the market, Select analyzed and compared 11 cards that offer benefits to individuals and families who are looking for an alternative to credit cards and debit cards to manage their money. When ranking the best prepaid cards, we focused on the following features:
Keep in mind that while prepaid cards are an alternative to credit and debit, they won't help you build credit. In order to establish a credit history, you need to regularly use a credit card responsibly, paying your bills on time and in full every month. And if you want an easy way to deposit and withdraw money for daily transactions, consider opening a checking account with a linked debit card so you can avoid ATM charges. Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party. Are there reloadable debit cards?A reloadable Visa Prepaid card is the quick, easy and secure way to pay online or in person. The all-purpose Visa Prepaid card is a prepaid card that you can use to withdraw cash, pay bills or make purchases anywhere Visa Debit cards are accepted, in-person or online.
How do I get a reloadable card?Prepaid cards are easy to get. Prepaid cards are sold at retail stores (usually for a fee) and some can be ordered online. There's no credit check, and they're often available even if you can't get a bank account because of a bad banking history. Unlike with a credit card, you load funds onto prepaid cards before use.
How much does a reloadable debit card cost?Most prepaid cards charge monthly maintenance fees around $10, which is similar to checking account fees that can cost up to $15 a month. But you may also pay a fee to open your prepaid card, typically around $5. You can also expect to incur an ATM fee, reload fee and foreign transaction fee with many prepaid cards.
Which banks offer reloadable debit cards?Unlike traditional credit cards, these cards require that cardholders load funds onto the card before using.. Brinks Prepaid Mastercard. ... . PayPal Prepaid Mastercard® ... . NetSpend® Visa® Prepaid Card. ... . NetSpend® Visa® Prepaid Card. ... . Bluebird® American Express® Prepaid Debit Account. ... . The Mango Prepaid Mastercard®. |