Where prepaid cards are sold and how to choose between them
Prepaid cards are sold by banks, payment networks, retailers, and online financial companies. The main routes are your own bank (if you have one), a major retailer like Walmart or Target, a payment network like Visa or Mastercard, or an online-only provider. Each route has different fees, reload options, and features. Your choice depends on where you already shop, whether you want a card tied to a bank account, and how much you are willing to pay per month.
Unlike credit cards, prepaid cards do not report to credit bureaus and do not build credit history. They work like a debit card: you load money onto the card first, then spend what you have loaded. This makes them useful for budgeting and for people who want to avoid debt, but they will not help you rebuild credit. If rebuilding credit is your goal, a secured credit card (which does report to bureaus) is a different product and a better fit.
Key Takeaways
- Banks, retailers, and online companies all sell prepaid cards, and the same card brand (Visa or Mastercard) may be sold through multiple sellers at different prices.
- Monthly maintenance fees range from zero to over $10, and reload fees vary by method — loading at an ATM costs more than loading at a store or online.
- Prepaid cards do not report to credit bureaus, so they do not build credit history even if you use them responsibly.
- Choosing between sellers depends on your reload method: if you shop at Walmart, a Walmart card may cost less to reload than a bank card.
Banks and credit unions
If you have a checking or savings account, your bank or credit union may offer a prepaid card as an add-on product or as a standalone option. These cards are often called "reloadable prepaid cards" or "payroll cards." Some banks bundle them with checking accounts; others sell them separately. The advantage is that you can load money directly from your bank account online, which usually costs nothing.
Monthly fees at banks typically range from $0 to $5, though some accounts charge more. Reload fees are usually waived if you load from your own bank account. If you do not have a bank account, opening one to get a prepaid card may not be worth the effort — you would be paying for two products instead of one.
Call your bank directly or visit their website to see what prepaid options they offer. If they do not have one, ask whether they recommend a partner provider. Some banks have relationships with prepaid card companies and may offer discounted rates to their customers.
Retailers: Walmart, Target, and others
Walmart, Target, and other large retailers sell prepaid cards under their own brands or under Visa and Mastercard. Walmart's MoneyCard and Target's RedCard prepaid option are two common examples. The main advantage is convenience: you can load money at the register when you shop, and there is no separate bank account to open.
Retail prepaid cards often have lower monthly fees than bank cards — some charge $0 per month. However, reload fees at the register or ATM can add up if you reload frequently. Loading at the register is usually free or low-cost; loading at an ATM outside the retailer's network may cost $2 to $3 per transaction. Check the fee schedule before you buy, because these costs vary by retailer and by card brand.
You can find retail prepaid cards in the financial services section of the store or online. Compare the monthly fee, reload fees, and ATM access before you choose. If you shop at one retailer regularly, their card may be the cheapest option.
Payment networks: Visa and Mastercard prepaid cards
Visa and Mastercard sell prepaid cards directly through their websites and through partner companies. These are generic cards that work anywhere Visa or Mastercard is accepted, not tied to a specific retailer or bank. Examples include Visa Prepaid and Mastercard Prepaid cards sold through various providers.
Fees for network-branded cards vary widely depending on the provider. Some charge $0 monthly; others charge $5 to $10. Reload fees depend on the provider and the reload method. You can usually load money online, at an ATM, or at a retail location, but each method may have a different fee.
The advantage of a network card is flexibility: it works at any merchant that accepts that network. The disadvantage is that you have more options to compare, and it is straightforward to end up paying more in fees than you would with a retailer or bank card. Read the full fee schedule on the provider's website before you buy.
Online-only prepaid card providers
Companies like NetSpend, Chime, and LendingClub offer prepaid cards that you order online and receive by mail. These providers often advertise low or zero monthly fees and fast funding. Many offer features like direct deposit, bill pay, and mobile apps. Some also offer small cash-back rewards or savings tools.
Online providers are useful if you do not have a bank account and do not want to visit a store. You can load money by direct deposit, bank transfer, or at certain ATMs. Monthly fees are often lower than retail cards, but reload fees and other charges (like overdraft fees on some cards) can be high. Read the full fee schedule and terms of service on their website.
One thing to check: whether the provider reports to credit bureaus. Most prepaid cards do not, but some online providers are starting to offer this as an optional feature. If you want to build credit history, ask whether the provider reports to Experian, Equifax, or TransUnion.
Comparing fees across sellers
The same Visa or Mastercard prepaid card may be sold by different companies at different prices. Before you buy, compare these fees across at least three sellers:
- Monthly maintenance fee: The cost to keep the card active each month, usually $0 to $10.
- Reload fees: The cost to add money to the card. This varies by method — loading at a store, online, or at an ATM may each cost different amounts.
- ATM withdrawal fees: The cost to withdraw cash from an ATM, usually $2 to $3 per withdrawal.
- Inactivity fees: Some cards charge a fee if you do not use the card for a certain period, usually 90 days or more.
- Customer service fees: Some providers charge to speak to a representative by phone.
Add up the fees you expect to pay in a month based on how you plan to use the card. If you reload once a month at a store and withdraw cash twice a month, calculate the total cost at each seller. The cheapest option depends on your habits, not on the card brand.
What to look for when choosing a seller
Beyond fees, consider where you will load money most often. If you shop at Walmart weekly, a Walmart card with free in-store reloads may be cheaper than an online card with a $2 reload fee per transaction. If you get paid by direct deposit, an online card that accepts direct deposit with no fee may be better than a retail card.
Check whether the card works at ATMs you use. Some prepaid cards have limited ATM networks, which means you may pay out-of-network fees more often. Look for a card that works at ATMs you already access, or that has a large ATM network with no out-of-network fees.
Read reviews from other users, but focus on complaints about fees and customer service, not on general opinions. A card that works well for one person may not work well for you if your reload method is different. Look for reviews that mention the specific fees you care about and the reload methods you plan to use.
Frequently Asked Questions
Can I use a prepaid card to build credit?
No. Most prepaid cards do not report to credit bureaus, so using one responsibly will not build your credit history. If you want to build credit, a secured credit card is a better choice — it requires a cash deposit like a prepaid card, but it does report to credit bureaus and can help you rebuild credit over time.
What happens if I lose my prepaid card?
Contact the card issuer when ready to report it lost. Most prepaid cards can be frozen or cancelled to prevent fraud. You can usually order a replacement card, though there may be a fee. Money on the card is usually protected, but the process and timeline vary by issuer. Check the terms of service for your specific card.
Can I get a prepaid card without a Social Security number?
Most prepaid cards require a Social Security number or ITIN for verification. Some online providers and retailers may have options for people without a Social Security number, but they are less common. Call the issuer directly to ask whether they have an alternative verification process.
Do prepaid cards have overdraft fees?
Most prepaid cards do not allow overdrafts — you can only spend money you have loaded. However, some online providers do offer overdraft protection as an optional feature, which means you can spend slightly more than your balance and pay a fee. Check whether your card offers this and whether you want it.
Can I use a prepaid card for online shopping?
Yes. Prepaid cards work like debit cards for online purchases. You enter the card number, expiration date, and CVV just as you would for a credit card. Some merchants may decline prepaid cards, but most accept them. If a merchant declines, try a different payment method or contact the merchant's customer service.