You can buy prepaid cards at most major retailers, banks, and online—but the fees and features vary widely

Prepaid cards are sold at grocery stores, drugstores, Walmart, Target, gas stations, and online through card issuers' websites. You can also get them from your bank if you have an account there. The card itself costs between $0 and $10 at the register, but that upfront fee is only the beginning—monthly maintenance fees, ATM withdrawal fees, and transaction fees add up quickly depending on which card you choose.

The card you pick matters more than where you buy it. Two cards that look identical at checkout can cost you $50 or $150 a year in fees. Before you hand over money, you need to know what you'll actually use the card for and which fees will hit you hardest.

Key Takeaways

  • Prepaid cards are sold at retail checkout counters, bank branches, and online, with purchase prices ranging from free to $10.
  • Monthly maintenance fees, ATM fees, and transaction fees vary by card and can total $50 to $150 per year if you're not careful.
  • Cards sold at grocery stores and drugstores tend to have higher fees than cards issued directly by banks or fintech companies.
  • Compare the specific fees you'll actually pay based on how you plan to use the card—ATM withdrawals, bill pay, or direct deposit.
  • Some prepaid cards waive monthly fees if you set up direct deposit, which can save you $10 to $15 per month.

Retail stores and gas stations: convenience with a cost

Buying a prepaid card at checkout is the fastest option. You walk in, grab a card from the display, pay the set up fee, and load money onto it right there. Retailers like Walmart, Target, CVS, Walgreens, and most grocery stores stock multiple brands. The cards are usually near the gift cards or in the customer service area.

The trade-off is fees. Retail prepaid cards often charge $4.95 to $9.95 just to set up the card, then add monthly maintenance fees of $5 to $10. Some charge $2 to $3 every time you use an ATM that isn't in their network. If you withdraw cash twice a week, that's $16 to $24 a month just for ATM access. These cards work fine if you plan to spend the balance quickly and rarely need cash, but they're expensive if you keep money on the card long-term.

Banks and credit unions: lower fees if you have an account

If you already have a checking or savings account, your bank or credit union may offer a prepaid card with much lower fees. Many banks waive the monthly maintenance fee entirely if you set up direct deposit, or charge only $2 to $3 per month otherwise. ATM withdrawals are usually free at your bank's machines and often free at a network of partner ATMs nationwide.

The catch is that you need an existing account to get one. If you don't bank there, you'll have to open an account first, which takes a few days. Some credit unions offer prepaid cards to non-members, but this varies by institution. Call your bank's customer service line or visit a branch to ask whether they offer prepaid cards and what the fees are.

Online and fintech prepaid cards: lowest fees, but less cash access

Companies like Chime, LendingClub, and NetSpend offer prepaid cards online with no monthly fee and no set up fee. You order the card through their website or app, it arrives in the mail in 5 to 10 business days, and you load money through bank transfer or direct deposit. Many of these cards reimburse ATM fees or offer free withdrawals at a large network of ATMs.

The downside is that you can't walk into a store and buy one today. If you need a card when ready, this won't work. Also, some of these cards are designed for specific purposes—like getting your paycheck early—so the features may not match what you need. Read the fee schedule carefully before you order, because "no monthly fee" doesn't mean "no fees at all." Some charge per transaction or per customer service call.

What fees to compare before you buy

Every prepaid card charges different fees, and the ones you'll actually pay depend on how you use it. Before you buy, write down what you plan to do with the card: Will you withdraw cash? How often? Will you pay bills online? Will you get your paycheck deposited on it? Then compare these specific fees across cards.

The main fees to look for are: set up fee (one-time, at purchase), monthly maintenance fee, ATM withdrawal fee (especially out-of-network), balance inquiry fee, bill pay fee, customer service fee, and inactivity fee (charged if you don't use the card for a set period). A card that charges $0 monthly but $3 per ATM withdrawal will cost you more than a card that charges $5 monthly with free ATM access—but only if you withdraw cash regularly. If you never touch an ATM, the first card wins.

Most prepaid card issuers publish their full fee schedule online. Search "[card name] fee schedule" and compare two or three cards that fit your budget and usage pattern. Spending 10 minutes on this can save you $50 to $100 a year.

How to load money onto your card after purchase

Once you own the card, you load money onto it before you can spend it. At retail checkout, you can usually load money right there—you tell the cashier how much you want to add, pay cash, and the balance appears on the card within minutes. Some retailers also let you load money at customer service desks or through their website.

If you ordered the card online, you load money through bank transfer, direct deposit, or sometimes by mailing a check to the issuer. Direct deposit is the fastest and often the cheapest option—many cards waive monthly fees if you set up direct deposit, so if your employer or a government benefit pays you, this can save you money when ready.

Prepaid cards versus other options

A prepaid card isn't the only way to spend money without a traditional bank account. A debit card from a bank or credit union usually has lower fees and more fraud protection, but requires opening an account. A secured credit card requires a cash deposit but builds your credit history, which a prepaid card does not. A money order or cashier's check works for one-time payments but doesn't let you spend repeatedly from the same balance.

If you're considering a prepaid card because you don't have a bank account, look into whether your bank offers a second-chance checking account or a basic account with lower requirements. These often have lower fees than prepaid cards and give you access to savings accounts and other banking services. If you're using a prepaid card to control spending or keep money separate from your main account, that's a legitimate use—just pick a card with fees that match your actual spending pattern.

Frequently Asked Questions

Can I use a prepaid card to build credit?

No. Prepaid cards do not report to credit bureaus, so using one does not build your credit history or credit score. If building credit is your goal, a secured credit card (which requires a cash deposit) is a better choice, because the issuer reports your payments to the three major credit bureaus.

What happens if I lose my prepaid card?

Call the card issuer when ready to report it lost. Most prepaid cards let you freeze the account over the phone or through their app, which stops anyone else from using it. You can usually order a replacement card, and the remaining balance transfers to the new card. Some issuers charge a replacement fee of $5 to $10.

Can I reload the same prepaid card multiple times?

Yes. Most prepaid cards are reloadable—you can add money to them as many times as you want. Some cards have limits on how much you can load per day or per month, so check your card's terms. Reloading usually costs nothing, though some cards charge a small fee per reload.

Do I need a Social Security number to buy a prepaid card?

Most prepaid cards sold at retail do not require a Social Security number—you can buy and set up them with just a name and address. Some online prepaid cards require an SSN or ITIN for tax reporting purposes. If you don't have an SSN, call the card issuer before you buy to confirm whether you can use it.

What's the difference between a prepaid card and a gift card?

A gift card is loaded with a fixed amount and usually can't be reloaded. A prepaid card is reloadable and designed for ongoing spending. Prepaid cards also typically offer features like bill pay and direct deposit, while gift cards do not. Prepaid cards also have more fees.