Prepaid debit cards are just one of many payment options consumers have available to them, but they’ve become relatively popular in recent years. According to Pew Charitable Trusts, five percent of adults use a prepaid debit card at least once a month.
Whether you want an alternative to a credit card, don’t want a checking account, or are having trouble getting approved for a bank account, a prepaid debit card can be a worthy alternative. But many prepaid cards charge hefty fees, which makes them difficult to justify compared to a free checking account. The best prepaid debit cards charge fewer fees, or at least provide enough value to make the costs worth it.
Let’s take a look at what a prepaid debit card is, how a prepaid debit card works, and what you should consider when you’re deciding whether a prepaid debit card is right for you.
There are a lot of prepaid debit cards on the market, and we did a lot of research to find the best prepaid cards based on a variety of factors.
For starters, we focused on cards that either don’t have a monthly fee, make it possible to waive the monthly fee, or offer enough value to make up for it. We limited the cards that charge a fee to use it for purchases, but some cards that offer this option have other benefits that make up for it.
We also looked at the benefits some of these cards offer, including several free reloading options, multiple ways to transfer money, spending rewards, savings options, and more.
How we evaluate products
The best prepaid debit cards
Comparing the best prepaid debit cards
There are several financial institutions that offer prepaid debit cards, but as with credit cards and even the best checking accounts, not all of them are created equal. As you look for the right fit for you, here are our top five prepaid debit cards to help get you started on your search.
Card name | Great fit for…. | Monthly fee | Free reload options |
Bluebird | Low fees | None | Direct deposit; mobile check deposits (10-day waiting period) |
Regions Now card | Cash back | $5 | Direct deposit; at Regions Bank, or any reload partner |
Netspend Prepaid card | Large reload network | None | None |
ACE Elite Visa Prepaid debit card | Linked savings account | $9.95 or $5 with $500 monthly direct deposit | Direct deposit; mobile deposit (standard waiting periods) |
Bluebird: Best for low fees
Monthly fee: $0
ATM network: 37,000 MoneyPass ATM locations
Bluebird by American Express is one of the least expensive prepaid debit cards available. There’s no monthly fee or a fee to activate the card, but you must purchase and activate it online, there’s no option to buy one in a retail store any longer.
Free reload options include direct deposit; cash or debit card at Family Dollar; and online with mobile paper check deposits. Keep in mind that there’s a 10-day waiting period with mobile deposits. If you want your money faster (within minutes), there’s a fee of 1% or 5% of the check amount (with a $5 minimum), depending on the type of check.
You can also add cash at select retail stores, but there’s a fee of up to $3.74 at Walmart and up to $3.95 at other retail locations. The card’s ATM fee is $2.50 for out-of-network ATMs, but there are more than 37,000 free locations in the MoneyPass ATM network.
Bluebird is FDIC insured through its partner, Pathward, N.A.
In addition to low fees, the card offers many perks including:
- Purchase protection
- Roadside assistance
- Access to Amex Offers
- Access to American Express Experiences
- 2-day early access to direct deposits
- No foreign transaction fees
- Includes online bill pay
- Can send money to other Bluebird card holders
- No free cash out options at retailers
- Long waiting period on check deposits
Regions Now card: Best for Cash back
Monthly fee: $5
ATM network: 1,400+ ATMs
The Regions Now Card is a reloadable prepaid card with a low monthly fee and that allows users to earn cash back. The minimum load is $10 and there’s no fee to reload the card, nor is there an inactivity fee, which I find nice since you may only want a prepaid card for certain situations.
What sets this card apart is its cash back offers through Regions Offers. If you activate offers before you shop and use your prepaid debit card to check out, you’ll earn cash back directly to your card.
There’s no overdraft feature on the card, so you don’t have to worry about going over your balance and you can waive the monthly fee by using your card for at least seven transactions a month. You can also set up direct deposit for no fee, or use the mobile deposit feature for a fee of 1% to 4% of the check amount.
Regions is FDIC insured.
Other features the card offers:
- Add to your digital wallet for seamless payments
- Free access to online banking
- Freeze your card at any time with LockIt controls
- Minimal fees, and monthly fee is waivable
- Card is free
- Limited locations
- Mobile deposits are costly
Netspend: Best for large reload network
Monthly fee: $9.95 or $5 with monthly direct deposit of at least $500
ATM network: Can use any ATM (for a fee)
The Netspend prepaid card works with 130,000 partners in its reload network including 7-Eleven, CVS, Dollar General, Walgreens, and Family Dollar so you don’t have to go far to find somewhere to reload your card.
You can use your prepaid card in any store or online and can check your balance anytime by logging into your account center. I also like that Netspend offers “Anytime Alerts” that lets you know of any transactions occurring on your card.
A few unique features the card includes are:
- Payback Rewards: These are automatic deals sent to you based on your regular spending. The more you use your card and activate offers, the more you will get.
- Purchase Cushion: If you’re short $10 or less on a purchase, Netspend may cover the cost and take it from your next reload.
The downside is there are many fees, including a $3.95 reload fee and $2.95 ATM withdrawal fee, which can get pricey if you use it often. There is also a $2 signature or PIN purchase fee.
The Netspend Prepaid Card is issued by Pathward, N.A., and Republic Bank & Trust Company, Members FDIC.1
- Large reload network
- Opportunity to earn cash back
- Many fees
- No direct deposit
ACE Elite Visa Prepaid Debit Card: Best for savings
Monthly fee: $9.95 or $5 with monthly direct deposit of at least $500
ATM network: 900+ locations
The ACE Elite Visa Prepaid debit card offers all the features of a traditional bank account, and you can even open a free high-yield savings account linked to your debit card and earn up to 5.00% (as of 9/27/24) APY on up to $1,000 saved.
ACE has 900+ ATM locations for free ATM transactions and if you set up direct deposit, you get paid up to two days early. ACE has an online account dashboard and mobile app so you can check your balance 24/7 and if any friends or family have an ACE prepaid card, you can transfer money to them for free.
To withdraw cash, you have a few options, each which has a fee:
Withdrawal method | Fee |
Any financial institution | $3 |
At any reload location | The greater of 2.75% of amount withdrawn or $4 |
ATM | $2.95 |
To add money to your account, you’ll incur the following fees:
Deposit method | Fee |
Direct deposit | $0 |
Cash reload at reload location | Up to $3.95 |
Standard mobile deposit | $0 |
Expedited mobile deposit | 2% to 5% of check amount |
The ACE Elite Visa Prepaid card is issued by Pathward, N. A., Member FDIC.
- Can set up Anytime Alerts to stay updated on your account transactions
- Direct deposit is free
- Fees for most transactions
- Charges 4% foreign transaction fee
Prepaid debit cards vs. regular debit cards
The primary difference between a prepaid debit card and a regular debit card is that a regular debit card is tied to a checking account with a bank or credit union. You can spend up to the amount of cash you have in your bank account, typically with an option for overdraft protection if you want it.
In contrast, prepaid debit cards typically only allow you to use money you’ve loaded onto the card. Although it’s possible to overdraft on a prepaid card account, most prepaid card issuers don’t allow it.
Prepaid debit cards also aren’t the same as secured credit cards, primarily because they don’t offer a line of credit that you can use and pay off over and over again. With a secured credit card, you’re required to submit a deposit to get approved, but that money is only used as collateral for your credit line, and it’s returned to you when you close the account, or possibly sooner than that.
That said, prepaid cards typically run on the same payment networks as credit cards and traditional debit cards, including Visa, Mastercard, and American Express.
Alternatives to prepaid debit cards
Although prepaid debit cards offer some benefits you may not be able to get with a credit card or traditional debit card, they’re not the right fit for everyone. Here are some potential alternatives to consider.
Second-chance bank accounts
If you’re looking at prepaid cards because you can’t get approved for a checking account, consider second-chance bank accounts. Banks and credit unions that offer these accounts understand it can be tough to get approved if you have negative marks on your ChexSystems report. This system chronicles your banking history like the credit bureaus keep track of your credit history.
A few of the best banks that offer these types of accounts include Green Dot Bank, Radius Bank, and Wells Fargo. Also, look at community banks and credit unions in your area for more options.
Chime®
Chime is a financial services app that operates primarily online, and it offers some great account options that differ from traditional bank accounts.2
A Chime® Savings account doesn’t charge a monthly fee or foreign transaction fee.3 You may be able to receive your paycheck up to two days early with direct deposit,4 and you’ll also have the option to save more by automatically setting aside a percentage of your paychecks into your Chime savings account.5 You can also round up every purchase you make on your debit card to the nearest dollar, with the difference deposited into your savings account.6
Tip
Keep in mind that you must have a Chime® Checking Account in order to be eligible for a Chime Savings Account.7
FAQs
Are prepaid debit cards safe?
Before 2019, there were a lot of concerns about safety and fraud protection with prepaid debit cards. However, the Consumer Financial Protection Bureau enacted regulations in April 2019 that provide consumers with many of the same protections as credit and debit cards.
For example, you’re not liable for more than $50 if someone uses your card without your permission, as long as you report it promptly after you discover the fraud. Prepaid cards may also be insured by the FDIC in certain circumstances.
In general, the best way to stay safe with a prepaid debit card is to take the same fraud prevention precautions as you would with any other payment method.
How much money can you put on a prepaid card?
Prepaid cards typically limit how much you can load onto them each day and overall, and you may also be limited on how much you can spend each day. However, these limits can vary from card to card, so check with the card issuer to find out if that’s a top priority for you.
Do all prepaid cards require a Social Security number?
In most cases, you’ll need to provide a Social Security number when you apply for a prepaid debit card. Although this information won’t be used to run a credit check, card issuers may check your banking history. There are some prepaid debit cards that don’t require a Social Security number, but they’re few and far between.
Are prepaid debit cards traceable?
Yes. Because your name is on the prepaid debit card account, transactions can be traced back to you, as with a credit or regular debit card.
Options that didn’t make our list
Choosing the right prepaid card is a big decision as there are many factors to consider. Here are a few others that didn’t make our “top list” but you may want to consider:
- FamZoo: FamZoo is a prepaid debit card and personal finance app for kids, teens, and families. It has a $5.99 monthly fee, allows reloads at most major retailers and allows direct deposit. The plan is geared toward kids and teens, while keeping families on the same page financially. Funds are FDIC insured.
- Serve American Express: American Express offers a few Serve prepaid cards including a free direct deposit, cash back, or free reload card. Each includes free direct deposit and easy cash reloads at CVS, Dollar General, and Walmart. Depending on the prepaid card, it may be FDIC insured through Pathward, N.A. or through American Express National Bank.
Bottom line
The best prepaid debit cards can provide an excellent alternative to credit cards and bank accounts. You won’t be subject to annual fees or credit card interest charges with a prepaid debit card. Although you won’t find any truly fee-free prepaid cards, there are some that charge fewer fees than others, and some also provide benefits that can make those fees worth it.
As you try to determine which prepaid card is right for you, consider our top options and also do your own research to compare and contrast. This process will help you find the right fit for you.