Best prepaid debit cards of April 2024
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“Verified by an expert” means that this article has been thoroughly reviewed and evaluated for accuracy.
BLUEPRINT
Published 8:00 a.m. UTC March 5, 2024
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Not enough money to meet minimum balance requirements, desiring privacy and a lack of trust in banks are the top three reasons cited by the nearly 6 million Americans that don’t have a traditional bank account, per the FDIC. One potential solution for those in such a situation is a prepaid debit card.
We looked at more than 40 options and evaluated 20 data points, to find the best prepaid debit card options for you.
Account details and annual percentage yields (APYs) are accurate as of February 22, 2024.
Best prepaid debit cards
- Regions Now Card®.
- Walmart MoneyCard.
- ONE VIP.
- Serve® American Express® Prepaid Debit Account – Serve Direct Deposit.
- Mango Prepaid Mastercard®.
Why trust our banking experts
Our team of experts evaluates hundreds of banking products and analyzes thousands of data points to help you find the best product for your situation. We use a data-driven methodology to determine each rating. Advertisers do not influence our editorial content. You can read more about our methodology below.
- 40+ prepaid debit cards reviewed.
- 4 levels of fact checking.
- 20 data points analyzed.
Regions Now Card®
Walmart MoneyCard
ONE VIP
Serve® American Express® Prepaid Debit Account – Serve Direct Deposit
Mango Prepaid Mastercard®
Compare winners
Compare the best prepaid debit cards
| Prepaid Debit Card | Activation fee? | Monthly Maintenance Fee | Minimum Deposit Requirement |
|---|---|---|---|
Regions Now Card
| $0
| $5
| $10
|
Walmart MoneyCard
| $1
| $5.94
| $20
|
ONE VIP
| $0
| $7.95
| $0
|
Serve American Express Prepaid Debit Account – Serve Direct Deposit
| Up to $3.95; $0 if you sign up online
| $6.95
| $20
|
Mango Prepaid Mastercard
| $0
| $5
| $0
|
Methodology
The biggest issue facing consumers in the market for a prepaid debit card is fees. Chances are unbanked households reliant on debit cards have less cash available than the median American, and are therefore more sensitive to fees chipping away at their balances.
That’s why we gave the most weight to fees, taking into account activation fees, monthly fees (and if a waiver is available), ATM fees and cash reload fees.
It’s also important that the cards themselves are accessible. We preferred cards that offered an ATM network, mobile check deposit, physical locations and that allow cash reload.
Lastly, we wanted to reward cards with strong customer service. To that end, we weighted how well the bank scored on mobile app rankings, in addition to its Trustpilot rating and BBB score.
The weightings, then, are as follows:
- Fees: 50%.
- Accessibility: 40%.
- Customer service: 10%.
Rewards were not or savings yields were not factored into our rankings, however we view them as an additional perk that might separate two otherwise similar products. The first mission of a prepaid card is to give you the convenience of a debit card without also charging big fees; anything else is gravy.
What are prepaid debit cards?
A prepaid debit card is a card that has a specific amount of money pre-loaded onto it. You can then use the card to make purchases as you would with a debit card attached to a checking account.
Cards are often branded as Visas or Mastercards, so they’re accepted nearly anywhere you’d shop with other types of cards. Prepaid debit cards can be purchased at many different types of retailers, including gas stations and grocery stores.
How do prepaid debit cards work?
You can use a prepaid debit card like you would a debit card or credit card. Spend up to the amount of cash loaded on the card at stores or online retailers. When your remaining balance is running low, you can choose to reload the funds on the card. If your balance runs out completely, you can’t use the card anymore unless you add money to it.
Unlike a gift card that’s only good at a specific retailer, prepaid debit cards can be used for purchases almost anywhere. You can even use them for automatic bill payments. You just need to make sure you keep a balance on the card to cover those expenses.
Another feature is that you may be able to get a second card for an authorized user. However, there may be a fee to get another prepaid debit card attached to the same balance.
Prepaid debit card vs. Regular debit cards: What’s the difference?
The biggest difference between a prepaid debit card and a regular debit card is that there’s no bank or credit union account attached to the prepaid version. With a regular debit card, the money you spend is withdrawn from a specific account (usually a checking account).
But for people who don’t qualify for checking accounts or want an alternative form of payment, a prepaid debit card gives them a more secure and flexible way to spend their money compared to cash.
Eligibility for prepaid debit cards
One of the benefits of a prepaid debit card is that the eligibility requirements are very minimal. There are two types of cards that impact how much information you’ll need to provide to get started: a single-load and a reloadable prepaid debit card.
“Single-load prepaid debit cards don’t require a Social Security number and can be opened by almost anyone,” said Christie Vella, chief operating office of Prepaid2cash, a fintech company that helps customers reload cash on debit cards.
Pros and cons of prepaid debit cards
“Prepaid cards are very hard (almost impossible) overdraw,” said Matthew Goldman, founder of Totavi fintech consultancy and publisher of the CardsFTW substack. “They’re also usually the easiest to open.”
Pros:
- No ChexSystems check required if you’ve had banking issues in the past.
- No credit check to impact eligibility.
- Safer than cash.
- Can be used in stores, online and for ATM withdrawals.
There are, however, some downsides to consider.
“Many prepaid debit cards charge fees before you even start using them,” said Vella.
Cons:
- Often come with fees, which could include monthly fees, transaction fees, reload fees, inquiry fees and more.
- Not as convenient as a checking account.
- Does not help improve your credit score.
Tips on choosing the best prepaid card for you
Start by making sure you know the details of the card you pick.
“It’s important to read all the fees on the cards to make sure you understand at what point you’ll be charged,” said Vella.
Also, compare the convenience of each one based on how you plan to use it.
“The best prepaid cards have good services, lots of reload locations, lots of fee-free ATMs and good pricing,” Goldman said.
Finally, decide whether you need a reloadable card or if you just want a single-use version for your needs.
Alternatives to prepaid debit cards
Depending on your financial needs, there are a few other options to consider in place of a prepaid debit card.
Checking account. You can open a checking account with a bank or credit union and receive a debit card and checks to use for spending. Before you pick one, compare the best free checking accounts to avoid expensive monthly service fees.
Secured credit card. With a secured card, you typically make a deposit with the bank and the amount of your deposit is your credit limit. You then use the card to make purchases and then make payments to the card to pay for what you have spent. Secured cards are easier to qualify for than a traditional credit card and they will help you build credit.
Frequently asked questions (FAQs)
The best prepaid debit cards charge little in the way of fees, and can easily be reloaded with cash as needed.
Prepaid debit cards are safe in that anyone who steals your card can only access the remaining balance. You are also not liable for any fraudulent transactions on the card.
No, prepaid debit cards do not affect your credit score. You aren’t using borrowed funds; instead, you’re simply managing your own money on the prepaid card. Secured credit cards, on the other hand, require you to keep cash in an account that is used to secure whatever charges you make on the card.
Yes, you can buy prepaid debit cards with a credit card. These are usually available at retailers like grocery stores and gas stations. They do usually charge an activation fee, which makes the prepaid debit card a little more expensive than face value.
Some prepaid debit cards do allow you to transfer money to a bank account. You will need to log onto the card issuer’s website or app and enter in your bank account and routing numbers. It can take several days for the funds to arrive in your bank account.
Blueprint is an independent publisher and comparison service, not an investment advisor. The information provided is for educational purposes only and we encourage you to seek personalized advice from qualified professionals regarding specific financial decisions. Past performance is not indicative of future results.
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