You can get a prepaid card from banks, retailers, and online providers — but the fees and features vary widely

A prepaid card is a plastic card you load money onto before you use it, like a gift card but for your own account. You can buy one at a physical store, order it online, or open one through a bank. The card itself is free or costs a few dollars at the register. The real cost comes later: monthly maintenance fees, ATM withdrawal fees, reload fees, and balance inquiry charges can add up to $100 or more per year if you pick the wrong card.

Where you buy it matters because different sellers offer different fee structures. A prepaid card from a bank branch usually has lower monthly fees than one from a convenience store checkout. An online-only card might have no monthly fee but charge you to reload. The card that works best for you depends on how often you plan to use it and whether you need to add money to it regularly.

Key Takeaways

  • Banks, credit unions, retailers, and online payment companies all sell prepaid cards, and each charges different fees for monthly maintenance, ATM use, and reloads.
  • A card with no monthly fee but high reload costs may cost more than one with a small monthly fee if you add money frequently.
  • Read the fee schedule before you buy — the card issuer must provide it in writing, either on the packaging or online.
  • Some prepaid cards report to credit bureaus and can help build credit history; most do not.
  • Prepaid cards are not the same as debit cards — you do not have a bank account behind them, so fraud protection rules differ.

Banks and credit unions

Most major banks now offer prepaid cards alongside their checking accounts. Chase, Bank of America, Wells Fargo, and US Bank all have versions. Credit unions often offer them too, sometimes at lower cost than banks. The advantage is that you can walk into a branch to reload, speak to a person if something goes wrong, and the monthly fees are usually between $0 and $5.

The downside is that bank prepaid cards often require a minimum balance or a certain number of monthly transactions to waive the fee. If you load $50 and use it once a month, you might pay $5 every month. Check the specific terms for the card you are considering — they vary by bank and sometimes by state.

Retailers and convenience stores

Walmart, Target, CVS, Walgreens, and 7-Eleven all sell prepaid cards at the checkout. You can buy one and load it with cash when ready. The card itself costs $0 to $5 depending on the brand. The problem is the fees that follow: monthly maintenance fees often run $5 to $10, ATM withdrawals cost $2 to $3 each, and reloading at the register may cost $1 to $2 per transaction.

These cards are useful if you need one right now and do not have a bank account. But if you plan to use the card regularly, the fees will eat into your balance. A card you reload once a month at a convenience store could cost you $60 to $120 per year in fees alone.

Online payment companies and fintech apps

Companies like Chime, Revolut, Wise, and PayPal offer prepaid cards that you order online and receive by mail. Many have no monthly fee and no ATM fees, which makes them cheaper than retail cards over time. Some let you reload for free through bank transfer or direct deposit. The trade-off is that you cannot load cash — you have to transfer money from a bank account or get paid directly to the card.

These cards are best if you have a bank account already and want a second card for a specific purpose, like travel or online shopping. If you do not have a bank account and need to load cash, an online card will not work for you.

What to compare before you buy

Every prepaid card issuer must give you a fee schedule before you buy. For retail cards, this is usually on the packaging or a sign at the register. For bank and online cards, it is in the terms document on their website. Write down these fees for each card you are considering:

  • Monthly maintenance fee: Charged whether you use the card or not. Some cards waive it if you meet a condition like one transaction per month.
  • ATM withdrawal fee: Charged each time you take cash out. Some cards offer a certain number of free withdrawals per month.
  • Reload fee: Charged when you add money to the card. Some cards let you reload for free at certain locations.
  • Balance inquiry fee: Charged when you check your balance at an ATM or by phone. Many cards now waive this.
  • Inactivity fee: Charged if you do not use the card for a set period, usually 90 days or more.

Add up the fees you expect to pay in a year based on how you plan to use the card. A card with a $5 monthly fee but free reloads might cost $60 per year. A card with no monthly fee but $2 per reload and four reloads per month might cost $96 per year. The math matters.

Prepaid cards and credit history

Most prepaid cards do not report to the three credit bureaus (Equifax, Experian, TransUnion), so using one will not build your credit score. A few cards, like some offered by banks and fintech companies, do report to the bureaus — but you have to look for this feature specifically. If building credit is your goal, a prepaid card is not the right tool. A secured credit card, which requires a cash deposit but reports to credit bureaus, is better.

That said, prepaid cards can help you manage money without a bank account, which is useful if you are rebuilding after past banking problems or do not have the documents banks require.

Fraud protection and what you lose

Prepaid cards are not bank accounts, so they do not have the same fraud protection as debit cards. A debit card linked to a checking account is covered by federal law (Regulation E) if someone uses it without permission — you report the fraud and the bank refunds your money. A prepaid card may or may not be covered, depending on how the issuer registered it.

Before you buy, ask the issuer whether the card is covered by Regulation E. If it is, you have the same protection as a debit card. If it is not, you have less recourse if someone steals the card or the number. This is another reason to read the terms before you buy.

Frequently Asked Questions

Can I use a prepaid card to build credit?

Most prepaid cards do not report to credit bureaus, so they will not build your credit score. A few cards from banks and fintech companies do report, but you have to ask the issuer directly. If credit building is your goal, a secured credit card is a better choice.

What happens if my prepaid card is lost or stolen?

Report it to the card issuer when ready. If the card is covered by Regulation E (federal fraud protection), you are liable for no more than $50 of unauthorized charges if you report within two business days. If it is not covered, you may lose the full balance. Check your card's terms to know which protection applies.

Can I reload a prepaid card with cash?

Retail prepaid cards can be reloaded with cash at the store where you bought them or at other retailers. Bank and online prepaid cards usually require a bank transfer or direct deposit. If you need to load cash regularly, a retail card is your only option.

Do I need a bank account to get a prepaid card?

No. Retail prepaid cards require only cash and a valid ID. Bank prepaid cards may require proof of address or a Social Security number but not an existing account. Online cards usually require a bank account to reload, so they are not useful if you do not have one.

What is the difference between a prepaid card and a gift card?

A gift card is usually for one store and expires after a set time. A prepaid card works like a debit card at any store that accepts that card brand (Visa, Mastercard, etc.) and does not expire as long as you use it. Prepaid cards also charge ongoing fees; gift cards typically do not.