Best Prepaid Cards of 2025

With a prepaid card, you load money onto the card upfront and then use it to make purchases.

Most prepaid debit card issuers allow funds to be loaded and reloaded by direct deposit, cash or bank transfer. If you don’t have a bank account, you can have your government checks and paychecks directly loaded onto the card. You can also load cash onto a prepaid card at retail stores for a fee. Many prepaid debit cards waive reload fees if you opt into direct payroll check deposits.

Some prepaid cards earn rewards and come with other benefits, such as fraud protection and online debit card banking services.

Note that some prepaid cards may come with an expiration date, after which point you’ll need to pay a fee to either get a new card or to release any remaining funds. Be sure to check if there’s an expiration date on your card.

How to get a prepaid card

A prepaid card is relatively easy to get — there is no credit check or minimum balance requirement. You can buy prepaid cards at most grocery and convenience stores, online and over the phone. Some banks and local credit unions also sell prepaid cards. If you buy the card online, you may be issued a virtual card or receive a physical card in the mail at a later time.

Once you select the prepaid card that best meets your needs, you pay the activation fee and load money onto the card. Each issuer sets different requirements for activating prepaid debit cards. Some require photo identification and charge an activation fee up to $10 for loading the initial funds onto the card. Once you pay the card’s purchase price, you have options for funding the initial amount, including:

• Electronic transfer
• Retail store cash deposit
• Employer direct deposit
• Reload card (MoneyPak)

You’ll need to register your prepaid card with the issuer if it’s insured by the Federal Deposit Insurance Corporation (FDIC). This is so the FDIC can identify you — and get you your lost funds — if the bank goes under. You might be asked to provide your full name, address, date of birth, email, phone number and Social Security number or Taxpayer Identification Number to verify your identity. Some issuers provide access to instant debit cards online that use virtual card numbers.

How to use a prepaid card

You use a prepaid card to make purchases in stores, shop online and pay bills. Once you load money and activate the card, there are several ways to access funds:

• ATM withdrawal: Prepaid debit cards let you withdraw cash at an ATM. ATM operator fees for withdrawals vary based on the provider and your card policy.
• Point-of-sale transaction: Swipe or insert the card into a retailer’s reader or type in the number to complete an online transaction. Some stores may allow you to receive cash back on a purchase. This can be a way to avoid the fees associated with an ATM withdrawal. However, there may be a cash-back withdrawal limit from the retailer.
• Electronic transfer: You can transfer funds between accounts if you link your prepaid account with another bank account. In some cases, it may be possible to send money without linking it. For example, some cards also allow transfers to a Cash App, Venmo or PayPal account.

» COMPARE: Best Money Transfer and International Money Transfer Services

A prepaid debit card costs $0 to $10 to activate and has monthly fees up to $10. Service fees vary by card, so check the list of fees for different types of transactions before you activate a new prepaid debit card. Examples of possible fees include:

• Reloading fees: Many prepaid cards charge a fee to deposit money onto the card account.
• Monthly service fees: Much like a checking account, many prepaid debit card accounts charge a monthly maintenance fee. Some cards reduce or eliminate this fee if you set up direct deposit or make monthly deposits that exceed a minimum threshold. Check with your card issuer to find out how to reduce fees.
• Transaction fees: Some prepaid cards charge a fee per transaction, usually around $1. Most prepaid debit cards also charge foreign transaction fees up to 3% for purchases made with vendors outside of the U.S. Shop around for the card with the most reasonable rates before traveling internationally.
• Withdrawal fees: Prepaid debit cards charge a fee for ATM usage in addition to charges by the ATM owner. Check for free ATMs and partners to minimize this cost.
• Additional fees: Some prepaid cards also charge ATM balance inquiry fees, inactivity fees, stop payment fees and decline fees. You will likely have to pay a fee to replace or cancel your card.

Prepaid cards are typically used by consumers who either don't have a traditional bank account or can’t get a credit card due to poor credit history. These consumers are often referred to as “the underbanked'' because they lack access to traditional bank accounts.

This was the situation for ConsumerAffairs reviewer Jarred in Tennessee. “I needed a card because I wasn't able to get a bank account just yet. I was working and wasn't able to get a bank account, but Netspend was able to give me a banking and a routing number, so that was as good as a banking account. I was able to get my apartment because I had that Netspend card with the banking and the routing number,” Jarred said.

Other people who may benefit from a prepaid card include:

• Online shoppers: If you frequently shop online but don’t want to give out your credit card or banking information, you may prefer the security of a prepaid card.
• Habitual overdrafters: A prepaid debit card is a great alternative if you routinely overdraft your checking account. Since you can only spend the amount loaded onto the card, you won’t face overdraft fees, and it’s harder to rack up debt.
• Those with low credit scores: Prepaid debit cards may be a good option if you have a low credit score and are ineligible for a credit card.
• Young adults and teens: Parents can help teens and young adults learn to manage their money by using a prepaid debit card.

» MORE: How to manage your money

Prepaid cards make a lot of sense for some people, especially for those who live in underbanked communities. Using a prepaid card is often safer and more convenient than carrying cash, but cardholders don’t enjoy the same perks as those with even entry-level credit cards.

Whether you're looking for a prepaid card to help with budgeting, online purchases or travel, you’ll want to weigh your options carefully. Here are some factors to consider when choosing a prepaid debit card:

• Fees: Be aware of any activation fees, maintenance fees, ATM withdrawal fees and transaction fees. Some cards may offer fee waivers for specific activities or under certain conditions.
• Loading options: Some cards allow direct deposit, bank transfers or mobile check deposits, while others may only offer in-person reload options. Consider what method is most convenient for your needs.
• Spending limits: Even though all the funds in your account are your own, some issuers put caps on how much you can withdraw or spend in a 24-hour period. Spending limits on prepaid cards can be as low as a few hundred dollars or as much as several thousand.
• Travel use: If you plan to use the card for travel, check if it has worldwide acceptance and a competitive currency conversion rate.
• Customer service: Investigate the card's customer service options, including availability, responsiveness and whether it offers 24/7 support. Reading reviews from other cardholders on sites like ConsumerAffairs can offer insight into the quality of customer service.
• Security features: Assess the security features provided, such as chip-and-PIN technology, fraud protection and the ability to lock or unlock the card through a mobile app.
• Mobile app and online access: Check if the card offers a user-friendly mobile app or online platform for easy account management and transaction tracking.