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Prepaid debit cards are a type of debit card where you put money onto the card through a deposit or transaction, and can then spend that money via the card.
While you can usually use prepaid debit cards like you would a regular credit or debit card, this type of card can be useful if you want to control your spending or don’t qualify for a bank account.
Our top recommendations for best prepaid debit cards
ACE Elite Visa Prepaid Debit Card: Best for frequent use
Pros:
- Can lower your monthly payments from $10 to $5 if you have qualified monthly direct deposit payments.
- The flat-rate monthly plan lets you have as many transactions as you want without an extra charge.
- No fee if you withdraw $100 or less every day at participating ACE locations.
Cons:
- Highest foreign transaction fee out of all the cards we evaluated.
- Fees for replacement cards, domestic withdrawals, mobile check deposits.
- Extra cost for cash reloading that isn’t part of a direct deposit.
We like that the ACE Elite Visa lets you pick a tier that fits your spending style. You can opt for no monthly payment and instead pay $1.50 per transaction. Or you can pay the $10 monthly fee for unlimited transactions. That monthly fee goes down to $5 if you have at least $500 in monthly direct deposits.
Even though there are fees, you’ll save if you limit how much you’re taking out per day and as long as you use ACE locations for withdrawals.
Bluebird by American Express: Best for no fees
Pros:
- No monthly fees or fees for loading your card at Family Dollar locations.
- Free withdrawals at MoneyPass ATMs.
- Can add subaccounts for family members.
Cons:
- Could face a fee if you reload at other places except Family Dollar.
- No cashback options when shopping.
- Could face a fee when initially getting the card.
Many prepaid cards have high fees, but Bluebird doesn’t. There’s no monthly fee and you can load your card for free at Family Dollar. You can also take money out without a fee at almost 40,000 MoneyPass ATMs.
Cash Card: Best for Cash App users
Pros:
- No fees to reload funds, no foreign transaction fees and no monthly or annual fees.
- Can design and personalize your own card.
- Access to exclusive offers at retailers and restaurants for savings.
Cons:
- No free ATM network and you could pay a fee every time you withdraw cash.
- Can face a fee for instant deposits.
Cash App users who already use the app to send and receive money may like the Cash Card as a prepaid debit card. You can reload funds for free and won’t face any fees for regular usage. If you need cash, there’s a fee when you make withdrawals, even if they come from in-network ATMs. There’s also a fee if you use instant deposits, ranging from 0.5% to 1.75% of your deposit amount.
ONE VIP: Best for rewards
Pros:
- Earn up to 1.5% cash back when shopping with some Black-owned brands and some select partners.
- Get 0.5% cash back on all other qualified purchases (1 point for every $2 spent).
- Can redeem points for cash back or make donations to charity.
Cons:
- Monthly fee of $7.95, but goes down to $4.95 a month if you sign up for direct deposit.
- No fee-free ATMs and you could pay $2.95 every time you make a withdrawal.
- Must get at least $25 in rewards before you can redeem them.
It’s rare to have a prepaid debit card that offers cashback rewards when you use it. The ONE VIP not only offers cash back on all your purchases, but up to 1.5% on select Black-owned brands and some of your favorite services, like Lyft, Netflix, DoorDash and more.
There’s no minimum balance you need to maintain and no overdraft fees. While there’s a $7.95 monthly charge, you can lower it when you sign up for direct deposit. Along with that, we love that this card offers donation opportunities. You get the option to donate your points through Urban One Community Works (U1CW) and if you load and spend at least $500 a month, ONE VIP donates $10 to U1CW charities.
Serve by American Express: Best for free cash loading
Pros:
- Load your card without facing any reload or transfer fees.
- Can reload at select retailers, transfer from a bank account or use a bar code reload option.
- Access to Amex benefits, including emergency assistance and roadside assistance.
Cons:
- Could face a $3.95 reload fee if you use an out-of-network retailer or ATM.
- No cash back options.
- Monthly fee of $6.95.
There are a few Serve cards by Amex, but the Serve American Express Prepaid Debit Account is the one we like the most. You can load your card for free at more than 45,000 retail locations or you can transfer funds from another bank account without facing any additional fees.
We like this option because retailers include CVS, Walmart, Family Dollar and some participating 7-Eleven locations. While there is a monthly charge to use this card, the unlimited cash reload options are a great fit for someone who gets paid or has cash often and needs to put money on their card.
Walmart MoneyCard: Best for Walmart shoppers
Pros:
- Get 3% cash back when shopping at Walmart.com, plus 2% when you get gas at select Walmart fuel stations and 1% at Walmart stores.
- Up to $200 in overdraft protection.
- Monthly fees are waived if you make at least $500 in qualifying monthly direct deposits.
Cons:
- Cash back is limited to $75 per year.
- Monthly fee is $5.94 if you don’t qualify for direct deposit and $15 for each instance of overdraft if you don’t sign up for protection.
- Could face other fees, some ATM fees if you don’t make withdrawals at Walmart stores and foreign transactions.
Walmart is still one of the leading retailers, which is why this card is so beneficial to many consumers. You can get cash back when you shop at Walmart, both online and in person. You can also get cash back at Walmart stores, whether at the MoneyCenters or the Customer Service desk.
While there’s a $15 overdraft fee, you can avoid it when you enroll and qualify for overdraft protection. You can also add four additional people to your account for free, including minors as young as 13 years of age.
| Brand | Best for | Annual fees | Monthly fee | Foreign transaction fee |
|---|---|---|---|---|
ACE Elite Visa Prepaid Debit Card | Frequent use | $0 | $0-$10 | 4% |
Bluebird by American Express | No fees | $0 | $0 | $0 |
Cash Card | Cash App users | $0 | $0 | $0 |
ONE VIP | Rewards | $0 | $7.95 | 3% |
Serve by American Express | Free cash loading | $0 | $6.95 | 2.7% |
Walmart MoneyCard | Walmart shoppers | $0 | $0-$5.94 | 3% |
How prepaid debit cards work
Since prepaid debit cards aren’t tied to a bank account, the way you use them is by loading them with money first. Once you get the card, you can put money onto it through a cash reload or a transfer from a bank account. Then you can use the funds on the card up to the available amount.
How to choose a prepaid debit card
Choose a prepaid debit card based on:
- Fees charged: Some prepaid debit cards charge a monthly fee to use, but may waive fees on transactions, reloads and withdrawals. Others don’t charge a monthly fee but you could see fees add up elsewhere. Make sure you know what’s charged and when.
- Availability: Many prepaid cards are tied to Visa, Mastercard, Discover and American Express — the largest credit card processing companies in the world. Make sure your card is available wherever these cards are accepted.
- Promotions, deals and offers: Most bonus offers are reserved for credit cards and even then not all credit cards offer rewards. However, you might find a prepaid debit card that offers rewards and other promotional offers. Check to see if you’re eligible and if so, what you’re on the hook for with the card. For instance, do you get a bonus but the reward isn’t as large as the monthly payment? If so, the card might not be worth it.
Where to get a prepaid debit card
Many retailers sell prepaid debit cards or you can order them online. Since prepaid debit cards aren’t credit cards, you normally don’t face a credit check when completing an application.
Alternatives to prepaid debit cards
There are several good alternatives to prepaid debit cards, including:
- Traditional debit card: If you have a bank account, you can use your debit card tied to your account.
- Credit card: Whether you have decent or even bad credit, you might qualify for a credit card to cover expenses or a larger than average purchase.
- Secured credit card: Similar to a prepaid debit card, secured credit cards allow you to load money onto your card and then your limit is how much you put on your card.
- Cash: If you don’t have a prepaid debit or credit card to cover the costs, pay in cash.
The AP Buyline roundup
Prepaid debit cards are a great way to keep track of your spending. They’re especially good for teens, and they make great gifts.
AP Buyline’s content is created independently of The Associated Press newsroom. Our evaluations and opinions are not influenced by our advertising relationships, but we might earn commissions from our partners’ links in this content. Learn more about our policies and terms here.
