Consumer Advocacy
What you need to know
Prepaid Cards
  • Can be used similarly to debit or credit cards
  • Familiar logos will be accepted by any vendor
  • Many cards feature rewards or discounts programs
  • Look out for cards with excessive fees
Our Approach

How we analyzed the best Prepaid Card Providers

Card Characteristics
Additional Services
Customer Experience

Our list of the best Prepaid Card Providers

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Our Research

More insight into our methodology


Card Characteristics

Although issued in many cases by the same companies that issue credit cards, prepaid cards have some limitations that credit card users won’t have, particularly regarding fees and cash transactions limits imposed by issuers. Limits such as maximum account balance, cash reloading, transfer and withdrawal limits should be taken into account when choosing a prepaid card. Fees are undeniably the weakest aspect of prepaid cards, so researching the type of fees charged is fundamental when making your choice. Fees charged includebut are not limited toa card purchase and activation fee, out of network ATM use fee, account balance inquiry fee, and cash reload fee. Remember to read the Cardholder Agreement or any other document that details the fees the consumer is responsible for before selecting a card.


Additional Services

With the recent boost in prepaid card popularity, issuers are adding services in order to make these cards more attractive to customers. One such service offered by several prepaid cards is complimentary access to a savings account. By signing up for automatic transfers to a savings account, users can take advantage of the service, which makes saving easy and convenient. On some of these accounts, consumers can earn up to 6.00% APY on their savings, based on the account balance. Other cards have Rewards programs that offer cash back on purchases or let customers earn points to use at a partner retailer. Other accounts offer additional cards or subaccounts that will help keep customers keep track of family spending.


Customer Experience

With all the prepaid cards currently available in the market, looking into the rewards and features of each card before choosing one should be right on top of the to-do list. The prepaid card industry has made many changes regarding customer experience, from reducing excessive fees to offering basic protection for accounts. Many issuers now offer FDIC insurance, limit customer liability for unauthorized transactions, and can replace stolen funds if the card is registered. Moreover, customer service representatives can help customers by phone, chat or email, and a considerable number of these companies offer 24/7 customer support. The use of website tools to manage accounts as well as having a downloadable app provides customers with the added mobility needed today, letting users manage their accounts on the go.

Helpful information about Prepaid Cards

A prepaid card might look like any other credit or debit card, but it is in a class by itself. Not to be confused with reloadable retailer cards or gift cards, prepaid cards are general-purpose cards that consumers recharge or "load up" and use to make purchases, withdraw cash, and receive direct deposits. Essentially, prepaid cards combine the convenience of a credit or debit card with the ability to allow the customer to set their spending limit according to their budget. Most prepaid cards are affiliated with popular card networks, so they look like any other card in that they have a magnetic strip, chip, and a familiar logo such as American Express, Visa or MasterCard. Concerning federal consumer protections, certain cards come with regulations that limit consumers losses when funds are stolen or cards are lost.  

Prepaid cards are gaining the most traction among consumers who do not have access to other forms of electronic payments, such as debit or credit cards, or prefer not to use them for certain transactions. A convenient way to store money, prepaid cards are largely used to limit spending, avoid bank and check cashing fees, and make electronic payments. Many prepaid cards also include features like text alerts, rewards and discount programs, and international money transfers. They are available to anyone, regardless of their credit rating, income, or whether they have a bank account. Therefore, they serve as a great tool for helping teenagers and students keep track of their finances and learn to manage their budget without the risk of getting into debt.  

Because they are not linked to a bank account, customers who own prepaid cards don’t have to worry about interests, finance charges, or late payments. On the downside, the big catch with prepaid cards are the fees, which can include monthly fees, ATM withdrawal fees, transaction fees, balance inquiry fees, and the list goes on. Nevertheless, there are several good options for low-fee, high-feature prepaid cards. Another drawback is the lack of a common language for the wide variety of terms that describe basic fees and features, which could make it difficult for customers to compare prices and brands. For this reason, all features and fees should be taken into account and the customer should be sure to read the small print carefully before committing to a specific prepaid card.  


FAQs about Prepaid Cards


Can a prepaid card help me build my credit history?

Prepaid cards will not help users build their credit history, since they are not tracked by any of the credit bureaus.

Are prepaid cards good for traveling?

Prepaid cards can be an excellent alternative to traveler's checks, and much more convenient. Instead of carrying around a bulky checkbook, prepaid cards allow users to simply load money onto the card, and use as necessary, in any location around the world which accepts the associated credit card company. In other words, any store or restaurant that takes Visa cards will accept payment with a prepaid card with the Visa logo on it.

Are there any federal protections for prepaid card users?

Users of prepaid cards have a number of federal consumer protections available to them, most notably to limit consumer's losses when funds are stolen or cards are lost. The regulations also require that prepaid card issuers provide clear, upfront information regarding fees and other details, as well as free and easy access to account information. Finally, the issuers must also offer protection similar to those for credit cards, if consumers are allowed to use credit from their accounts to pay for transactions they may lack the funds to cover.

Where can I use my prepaid card?

Prepaid cards can be used for purchases and transactions in exactly the same way as a credit card. They can be used anywhere that accepts the credit card network associated with the card (Visa, Mastercard, American Express, etc).

Do I need to have good credit for a prepaid card?

Prepaid cards usually don't require a credit check, and are available even if the user has had a bad banking history and can't get a banking account.

What is the difference between a prepaid card and a gift card?

Prepaid cards and gift cards work in much the same way, by allowing people to deposit cash and then access it through the card. However, there are some key differences. Prepaid cards function more like debit cards, which can be reloaded with cash as the user sees fit, whereas gift cards are generally for more limited, one-time use. There is also a difference in the amount of fees, as prepaid cards generally have a considerable amount, whereas gift cards don't.

What is a prepaid card?

A prepaid card is essentially a debit card issued by a company and branded by a major credit card company (such as American Express, Visa, or MasterCard). Money is deposited into the card account, much in the same way as a gift card. The card can then be used just like a credit card, anywhere the specific credit card company (Amex, Visa, etc), is accepted.

Our Prepaid Cards Review Summed Up

Company NameBest for
PayPal Prepaid Debit MasterCard®
American Express Serve Prepaid CardsMember Benefits
Fifth Third Access 360° Prepaid CardCo-Account Holder
Vision Prepaid CardFDIC-Insured Deposits
Mango Visa Prepaid CardLow-Fees
ACE Elite Prepaid CardNo-Fee Cash Withdrawals
Green Dot Prepaid Card No Overdraft Fees
MyVanilla Visa Prepaid CardZero Liability Policy
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