How Much Can You Put on a Prepaid Visa Card

If y'all don't have a bank account or you need a new way to budget, prepaid debit cards might be the adjacent plastic for your wallet. Hither'southward how they piece of work.

What is a prepaid debit card and how do I get ane?

A prepaid debit card is an alternative banking production that only lets you lot spend the money y'all load onto the card. Similar debit cards, prepaid cards work at any merchant that accepts its payment network, such as Visa or Mastercard. They're safer and more user-friendly than using cash. They're also known as stored-value cards, pay-equally-you-go cards or, more formally, general-purpose reloadable prepaid cards.

You lot can buy a prepaid debit card from a retailer, banking concern, credit menu company or other financial services provider. When you purchase one, your card funds are unremarkably part of an account held past a depository financial institution or credit union. Because many prepaid debit cards don't crave credit checks, they're easy to get. Notwithstanding, they won't help build credit.

Prepaid carte du jour companies unremarkably offer several means to load funds onto a menu. Some cards too let you link to a checking account to make online transfers.

Citi Priority Checking

Deposits are FDIC Insured

Chime Spending Account

Federally insured past the NCUA

Alliant Credit Union High-Rate Checking

Axos Bank® Rewards Checking

Deposits are FDIC Insured

One Spend

How prepaid debit cards work

Prepaid cards vary widely, but they tend to have these features in common:

Reload options: You tin normally add money to a card in multiple means, such equally setting up directly deposits, loading cash at participating retailers and depositing checks at ATMs. Some cards likewise allow you make online transfers or mobile bank check deposits from a smartphone.

ATM access: Some prepaid cards have access to gratuitous nationwide ATM networks, such every bit MoneyPass and Allpoint, or to branded depository financial institution networks for cards issued by banks.

Fees: You might accept to pay for activating a card, making deposits and using out-of-network ATMs. In that location'southward unremarkably a monthly fee, which sometimes can be waived — past having direct deposits, for example. Some cards accuse a fee for every purchase and ATM transaction.

Amount limits: Some cards restrict how much y'all can withdraw, reload or spend during a sure period, such every bit a mean solar day or month.

Protections: Reloadable prepaid cards have the liability and fraud protections required of debit cards by federal police force. Some cards offer purchase protections, only it can be hard to dispute unauthorized transactions or correct errors. 1 safeguard many cards accept is federal deposit insurance, pregnant your money is covered if an issuer becomes broke.

Expiration dates: Prepaid cards have expiration dates. You'll demand to be reissued a card before it expires. Funds on the cards shouldn't elapse, though. In a 2022 report by the Consumer Financial Protection Bureau, some consumers complained that they had money on their cards when they expired, but the issuer didn't reissue cards that included those balances. If that happens to y'all, reach out to the prepaid company to see if it can be resolved. If not, you can submit a complaint on the CFPB website.

Other features: Some prepaid cards offer check writing, online bill pay and multiple copies of a card for family members. A rare few even offer rewards such as cash back on purchases, similar to rewards credit cards.

Limitations of prepaid debit cards

No outcome on credit: Because prepaid debit cards aren't credit cards, you can't build credit with them. For that, yous'd desire to consider a secured credit card .

Lack of bank services: Prepaid cards also don't automatically have all the features you'd expect with a checking account, including admission to an ATM or co-operative network, online or mobile banking, or depository financial institution services such as wire transfers and the ability to stop payments.

If you want a checking account without monthly fees, consider our list of best free checking accounts . In that location are also second take chances checking accounts for people with bad credit or banking histories.

Whether used every bit a budgeting tool or equally an alternative way to bank, prepaid debit cards tin can help you store and spend money productively.

Prepaid debit cards vs. credit and debit cards

Here's a quick breakdown:

• Prepaid debit cards — pay before: Y'all load coin onto the card via cash, checks, directly deposit or a transfer from another account before paying for transactions.

• Debit cards — pay now: You use coin direct from a checking business relationship when paying for purchases or withdrawing coin from an ATM.

• Credit cards — pay afterwards: Y'all borrow money from a banking concern when you utilise the carte and pay the money dorsum later.

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Source: https://www.nerdwallet.com/article/banking/prepaid-debit-cards-what-you-should-know

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