Jamela AdamBanking Review and Writer
With more than three years of experience as a personal finance writer, Jamela Adam simplifies complex money topics to help readers become experts at managing their finances. Her work has been featured by U.S. News, Chime, SuperMoney, Business Insider, GOBankingRates and more.
Jamela Adam
Jamela AdamBanking Review and Writer
With more than three years of experience as a personal finance writer, Jamela Adam simplifies complex money topics to help readers become experts at managing their finances. Her work has been featured by U.S. News, Chime, SuperMoney, Business Insider, GOBankingRates and more.
Banking Review and Writer
Elizabeth AldrichDeputy Editor, Banking
With eight years of experience as a financial journalist and editor and a degree in economics, Elizabeth Aldrich has worked on thousands of articles within the realm of banking, economics, credit cards, investing, loans, personal finance and travel. Her work has been featured in Business Insider, The Motley Fool, Bankrate, Investopedia, LendingTree, Student Loan Hero, ValuePenguin, USA Today, Credit Karma, NASDAQ, Yahoo! Finance and more.
Fact Checked
Elizabeth Aldrich
Elizabeth AldrichDeputy Editor, Banking
With eight years of experience as a financial journalist and editor and a degree in economics, Elizabeth Aldrich has worked on thousands of articles within the realm of banking, economics, credit cards, investing, loans, personal finance and travel. Her work has been featured in Business Insider, The Motley Fool, Bankrate, Investopedia, LendingTree, Student Loan Hero, ValuePenguin, USA Today, Credit Karma, NASDAQ, Yahoo! Finance and more.
Deputy Editor, Banking
Fact Checked
Updated: Jun 5, 2024, 11:40am
Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations.
If you’d prefer not to pay for purchases with cash, credit cards or funds in your checking account, give prepaid debit cards a try.
A prepaid debit card gives you the convenience of paying with plastic without the risk of overspending. These cards are accepted almost everywhere, and they let you avoid overdrafts and the hassle of carrying cash. Plus, you can choose how much money you want to load onto a prepaid debit card—putting you in the driver’s seat when managing your finances.
Here are our picks for the best prepaid debit cards of 2024. Rates and information are accurate as of June 5, 2024.
Why you can trust Forbes Advisor
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Show Summary
- Featured Partner
- Best Prepaid Debit Cards
- Summary: Best Prepaid Debit Cards
- Methodology
- What Is a Prepaid Debit Card?
- Prepaid Debit Card vs. Regular Debit Card
- Pros and Cons of Prepaid Debit Cards
- Who Is Eligible for a Prepaid Debit Card?
- How To Choose a Prepaid Debit Card
- How To Get a Prepaid Debit Card
- Alternatives to Prepaid Debit Cards
- Frequently Asked Questions (FAQs)
- Next Up In Banking
Best Prepaid Debit Cards
We compared 34 prepaid debit cards from 28 providers to find the best options available. Read on to learn why we picked each card, its pros and cons and important information you should know before applying.
Best for Frequent Card Users
Regions Now Card
4.8
Our ratings are calculated based on fees, rates, rewards and other category-specific attributes. All ratings are determined solely by our editorial team.
Monthly Maintenance Fee
$5
ATM Network
1,900
Minimum Deposit Requirement
$0
$5
1,900
$0
Editor's Take
The Regions Now Card has zero cash reload fees at over 1,900 ATMs across Regions Bank’s 15-state service area. Plus, Regions Bank waives the $5 monthly fee if you use the card to make at least seven purchases during a statement period.
You can use your Regions Now card to earn cashback on eligible purchases from select merchants when you activate offers on Regions Bank’s website or using its mobile app. If you live within Regions Bank’s service area and plan to use your prepaid debit card frequently, the Now Card could be an affordable option.
Pros & Cons
- No card activation fee
- No fee for cash reloads at Regions Bank branches and ATMs
- No inactivity fee
- Limited service area
- $5 monthly fee if you make fewer than seven purchases per statement cycle
- Mobile load fee of 1% to 4% of the check amount (minimum $5)
Details
The maximum balance on a Regions Now Card is $7,500, and the daily spending limit is $3,000 per card. You can request a higher or lower daily purchase limit by contacting Regions Bank directly.
Best for Supporting Black-Owned Businesses
ONE VIP
4.7
Our ratings are calculated based on fees, rates, rewards and other category-specific attributes. All ratings are determined solely by our editorial team.
Monthly Maintenance Fee
$7.95
ATM Network
None
Minimum Deposit Requirement
$0
$7.95
None
$0
Editor's Take
Urban One, the nation’s largest Black-owned media company, created the ONE VIP card to uplift Black businesses and empower underserved communities.
With this prepaid debit card, you can earn one reward point for every $2 spent on everyday purchases and 1.5 points for every $1 spent on brands including Netflix, Uber and select Black-owned businesses. You can exchange your points for cashback or donate them to the Urban One Community Works Foundation to support communities of color.
Pros & Cons
- Early access to direct deposits
- Supports Black-owned businesses
- Donates to charities supporting communities of color
- No fee-free ATMs
- Unavoidable monthly fee
- Must accumulate $25 in rewards points to redeem them
Details
ONE VIP rewards never expire. Once your rewards reach $25, you can redeem them for cash-back credits. The credits could take 36 to 48 hours to show up in your ONE VIP account.
Best for Cash-Back Rewards
ACE Elite® Visa® Prepaid Debit Card (Pay As You Go)
4.6
Our ratings are calculated based on fees, rates, rewards and other category-specific attributes. All ratings are determined solely by our editorial team.
Monthly Maintenance Fee
$0
ATM Network
850
Minimum Deposit Requirement
$0
$0
850
$0
Editor's Take
For those who aren’t frequent users of prepaid debit cards, the pay-as-you-go plan from ACE Elite might make more financial sense than the $9.95 flat-fee plan. With no monthly fees, this plan only charges $1.50 per purchase.
Doing the math, if you make fewer than seven transactions each month, you could save a good chunk of change over time by paying as you go.
Pros & Cons
- Cashback rewards at select retailers
- Early access to direct deposits
- No fee for international withdrawals
- 4% foreign transaction fees (higher than the typical 3%)
- Domestic cash withdrawals are only free if you receive direct deposits
- 5% fee for mobile check deposits
Details
The pay-as-you-go plan has no monthly fees but costs $1.50 per transaction. You could also incur an inactivity fee of $5.95 per month if you don’t use the card for 90 days. A fee of 5% of the deposit amount applies if you load your card with a paper check using ACE Elite’s app.
Best for Cash Reloads
Netspend Prepaid Card
4.4
Our ratings are calculated based on fees, rates, rewards and other category-specific attributes. All ratings are determined solely by our editorial team.
Monthly Maintenance Fee
$9.95
ATM Network
None
Minimum Deposit Requirement
$10
Learn More
Read Our Full Review
$9.95
None
$10
Editor's Take
The Netspend Prepaid Card boasts an impressive network of more than 130,000 locations nationwide for cash reloads. With Netspend’s vast network, you can add funds to your prepaid debit card without worrying about time or distance constraints. The card carries a $9.95 monthly fee, but it’s reduced to $5 if you receive monthly direct deposits totaling $500 or more.
Pros & Cons
- Early access to direct deposits
- 130,000+ cash reload locations
- No activation fee
- No fee-free ATM withdrawals
- Unavoidable monthly fees
- The pay-as-you-go plan charges more than competitors
Details
The NetSpend Prepaid Card has a $9.95 monthly fee that’s reduced to $5 if you receive at least $500 in direct deposits on a regular basis.
Best for Avoiding Fees
Truist Money Account
4.2
Our ratings are calculated based on fees, rates, rewards and other category-specific attributes. All ratings are determined solely by our editorial team.
Monthly Maintenance Fee
$5
ATM Network
3,000
Minimum Deposit Requirement
$0
$5
3,000
$0
Editor's Take
The Truist Money Account is an excellent choice for those who want to keep their finances organized without worrying about extra fees. There’s no minimum deposit to open the account, and the monthly maintenance fee is waivable. Plus, unlike many competitors, Truist doesn’t charge cash reload or inactivity fees.
Pros & Cons
- No maintenance fee if you receive $500 or more in monthly direct deposits
- No cash reload fees or inactivity fees
- Cashback rewards at participating merchants
- Only available to residents of 19 states
- 5% fee for mobile check deposits
- Requires income information and two years of address history
Details
The $5 monthly maintenance fee is waived by receiving $500 or more in monthly direct deposits. Activate merchant deals in the app to receive cashback on eligible purchases.
Summary: Best Prepaid Debit Cards
Company | Company - Logo | Forbes Advisor Rating | Forbes Advisor Rating | Monthly Maintenance Fee | ATM Network | Minimum Deposit Requirement | Learn More CTA text | Learn more CTA below text | Learn More |
---|---|---|---|---|---|---|---|---|---|
Regions Now Card | 4.8 | ![]() | $5 | 1,900 | $0 | View More | |||
ONE VIP | ![]() | 4.7 | ![]() | $7.95 | None | $0 | View More | ||
ACE Elite® Visa® Prepaid Debit Card (Pay As You Go) | ![]() | 4.6 | ![]() | $0 | 850 | $0 | View More | ||
Netspend Prepaid Card | 4.4 | ![]() | $9.95 | None | $10 | View More | |||
Truist Money Account | ![]() | 4.2 | ![]() | $5 | 3,000 | $0 | View More |
Methodology
To create this list, Forbes Advisor analyzed 34 prepaid cards from 28 providers, including a mix of traditional brick-and-mortar banks, online banks, credit unions and fintech companies. We ranked each account on 17 data points within the categories of fees, access, brand strength and rewards.
The following is the weighting assigned to each category:
- Fees: 50%
- Access: 25%
- Brand strength: 15%
- Rewards: 10%
Specific characteristics taken into consideration within each category included activation fee, monthly fee, ability to waive the monthly fee, ATM fee, cash reload fee, rewards rate, ATM network, mobile check deposit fee, physical locations and app store ratings.
What Is a Prepaid Debit Card?
Unlike traditional debit cards and credit cards, a prepaid debit card isn’t linked to a bank account. Instead, it functions like a gift card because you can only spend the money already loaded onto it.
Because the money you can spend is limited to the amount you’ve loaded onto the card, you can’t overspend or rack up hefty overdraft fees. This control over your finances helps you manage your spending and offers you peace of mind.
Prepaid debit cards are issued by banks and usually have a Visa, Mastercard, Discover or American Express logo on them. You can use these cards at any online or physical location that accepts debit cards.
How Do Prepaid Debit Cards Work?
Before using a prepaid debit card, you must top it up with funds. There are several ways to do so. Depending on your card issuer, you could add money by:
- Transferring money from your checking account or another prepaid card
- Directly depositing your paycheck onto the card
- Loading physical cash onto the card at approved retailers or the financial institution that provided the card
- Purchasing a “reload pack” to add a specific amount to the card
Once you add money to the card, you can use it anywhere a typical debit card is accepted. Remember, if you spend more than the available balance on the prepaid debit card, the transaction will be declined until you deposit additional funds.
Prepaid Debit Card vs. Regular Debit Card
The primary difference between a regular debit card and a prepaid debit card is that the former is linked to a bank account while the latter isn’t. You have to load money onto a prepaid debit card—or “prepay”—before you make a purchase. When you use the card, you’re spending that money—much like how a gift card works. With a debit card, you’re spending money that’s in your bank account.
You can’t spend more than what you’ve loaded onto a prepaid debit card. Some debit cards will let you overdraft your account, but you could incur hefty overdraft fees. However, prepaid cards are more likely to have monthly fees and purchase fees.
Generally, you have to apply for a bank account to get a debit card. Many financial institutions will look at your ChexSystems report, which details your banking history, and they may deny your application if you have negative marks. Prepaid debit cards typically have no application process and don’t consider your banking history.
Prepaid Debit Card | Standard Debit Card | |
---|---|---|
Tied to checking account | No | Yes |
Requires credit check | No | No |
Requires application | No | Yes |
Potential fees | Per-purchase fees, loading fees, monthly fees, ATM fees | ATM fees |
Cash withdrawals | ATMs, participating retailers | ATMs, participating retailers, brick-and-mortar branches |
Fee to open | Typically, yes | No |
Operated by major issuers | Yes | Yes |
Builds credit | No | No |
Pros and Cons of Prepaid Debit Cards
Before applying for a prepaid debit card, understand the advantages and drawbacks of using this kind of payment method.
Pros
- Prevents overspending and overdraft fees
- No credit or ChexSystems check
- Convenient to reload
- More secure than carrying cash
Cons
- Doesn’t help build credit
- Fees can be excessive
- Money stored on prepaid debit cards does not accrue interest
Who Is Eligible for a Prepaid Debit Card?
Elizabeth Aldrich, deputy editor at Forbes Advisor says:
“Nearly everyone is eligible for a prepaid debit card since there’s no credit check involved in opening one. You don’t even need a bank account. All you need to sign up for the card of your choice is basic information like your name, address and Social Security number. Once you’re registered, you can add funds and start using it.
You do need to be 18 years old to qualify for most prepaid debit cards.”
How To Choose a Prepaid Debit Card
With so many prepaid debit card options, choosing the right one can be overwhelming. You can weed out the bad apples and narrow down your choices by doing the following.
- Consider the fees. First, consider the costs associated with each prepaid debit card—such as monthly maintenance, ATM, foreign transaction and cash reload fees. If you’re not careful, these charges can quickly add up and eat into your spending money.
- Compare features and benefits. Look into the benefits each card offers. Some cards provide liability protection, cashback rewards and other spending and safety perks.
- Read the fine print. Once you have an idea of what works best for your needs and lifestyle, read the terms and conditions of each card before making your decision. Look at rules about transferring funds, reload and spending limits and deposit options.
Pro Tip
If you’re an avid traveler, consider getting a prepaid debit card designed for vacationers, like the Wise travel money card. Its auto-convert feature allows you to switch your account balance to your desired currency with the lowest possible fees. Plus, you can use this prepaid debit card in more than 175 countries and at 3 million ATMs worldwide.
How To Get a Prepaid Debit Card
The process of applying for a prepaid debit card may differ depending on the card you choose.
- In-store. Major retailers like Walmart often allow you to purchase and load money onto a new prepaid debit card right in the store. However, before you can use the card, the retailer may ask for your personal information—such as your name, phone number and date of birth—to verify your identity.
- Online. Many prepaid cards, like the Regions Now card, provide streamlined online applications to help you sign up for a new card in minutes. You’ll typically need to provide basic personal information, including your Social Security number and physical address, to complete the application.
- At a branch. Banks like Truist and Chase offer prepaid debit cards you can apply for at your local branch. Speak with a bank representative to learn how to apply.
Alternatives to Prepaid Debit Cards
While prepaid debit cards come with many perks, they’re not the most suitable option for everyone. Consider these alternatives that may be a better fit.
- Traditional debit cards. Besides cash and money orders, traditional debit cards are perhaps the safest and most convenient alternative to prepaid cards. They also tend to come with fewer fees, especially if you opt for a no-fee checking account. However, you’ll have to apply for a checking account to get a traditional debit card. This process is easy, but you might not be approved if you have negative marks on your banking history.
- Second chance checking accounts. If you have multiple negative items in your ChexSystems report, which keeps track of past banking activities, you may have trouble getting approved for a regular bank account and debit card. Second chance checking accounts don’t check your ChexSystems report and come with traditional debit cards.
- Secured credit cards. Unlike regular credit cards, secured credit cards require an upfront deposit, which often serves as your credit limit. Despite this initial cost, they can be an excellent tool for building credit since you can typically qualify even if you have no credit or a poor credit history. Plus, unlike prepaid debit cards, most secured credit cards can help you improve your credit because issuers report activity to the credit bureaus.
- Becoming an authorized user. If you’re limited to prepaid debit cards because of your credit score, get your credit back on track by becoming an authorized user on a credit account that belongs to your spouse or a family member. As an authorized user, you’ll share a line of credit with the owner and get your own card for spending. This way, you can lean on that person’s good credit to establish your own.
Find The Best High-Yield Savings Accounts Of 2024
Learn More
Frequently Asked Questions (FAQs)
What is a virtual prepaid debit card ?
A virtual prepaid debit card is a prepaid debit card in a digital format. Like physical prepaid debit cards, virtual prepaid debit cards have a 16-digit number and a CVV code. You can typically use them at any merchant that accepts debit or credit cards.
How much is a prepaid debit card?
It depends. Some prepaid debit cards charge fees for monthly maintenance (typically up to $10 a month), foreign transactions and cash reloads, while others don’t. Be sure to shop around and compare fees to find the best prepaid debit card for your budget.
Do prepaid debit cards affect your credit score?
No. Prepaid debit cards will not affect your credit score since you’re not borrowing money and can only spend the amount loaded onto the card. However, while prepaid debit cards won’t negatively impact your credit score, they won’t help it either. So if you’re looking to build credit, consider exploring other options such as secured credit cards or second chance credit cards.
What is the best prepaid debit card?
The best prepaid debit card depends on your lifestyle and needs. If you aren’t a frequent user of prepaid debit cards, you may want to consider options that don’t have monthly fees and instead charge you per transaction. On the other hand, if you frequently purchase items using your prepaid debit card, look into options that offer cash-back rewards or points for every purchase you make.
How do you transfer money from a prepaid debit card?
You can typically transfer money from a prepaid debit card to a bank account via your card issuer’s online or mobile portal. You may need to enter your prepaid card details, the amount you want to transfer and the bank account information. The exact transfer process may vary depending on the card issuer, so be sure to check with them before initiating the transfer.
How much can you put on a prepaid debit card?
Some prepaid debit cards let you load up to $15,000 onto your card, while others may have a lower maximum amount. For example, the Regions Now Card has a $7,500 balance limit. You can find the maximum limit on your prepaid debit card by reading your card’s terms and conditions.
Can you buy prepaid debit cards with a credit card?
Yes, you can buy prepaid debit cards using a credit card. Many retailers, both physical and online, offer this option. However, you’re often not allowed to load money onto a prepaid debit card with a credit card.
Where can you buy prepaid debit cards?
You can purchase a prepaid debit card in person at major retailers like Walmart and Target or at a local bank branch. You can also order prepaid debit cards online from card issuers like ONE VIP or Netspend.
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