You can buy a prepaid card at most retailers, banks, and online — but the cost and features vary widely

A prepaid card is a card you load money onto before you use it, like a gift card but for your own spending. You buy it at a store or online, add money to it, and then use it to pay for things. Unlike a credit card, you cannot spend more than what you have loaded on it, and it does not build a credit history.

The main places to get one are drugstores (CVS, Walgreens), supermarkets, Walmart, Target, banks, and online card companies. Each source has different fees, reload options, and features. Knowing where to look and what to compare saves you money — some cards charge $5 to $10 just to buy them, while others are free.

Key Takeaways

  • Prepaid cards are sold at retailers like Walmart and CVS, at banks, and through online companies, with prices ranging from free to $10 at purchase.
  • Reload fees, monthly maintenance fees, and ATM withdrawal fees vary by card and can add up to $100 or more per year if you use the card frequently.
  • Retail prepaid cards (sold at checkout) are quickest to get but often have higher fees than cards from banks or online-only companies.
  • Some prepaid cards report activity to credit bureaus, but most do not — check the card's terms if building credit history matters to you.
  • You will need a valid ID to load money onto most prepaid cards, and some require a Social Security number or address verification.

Prepaid cards sold at checkout: fastest but often pricier

The easiest place to get a prepaid card is the checkout lane at a drugstore or supermarket. Cards like Green Dot, NetSpend, and Vanilla are stocked at CVS, Walgreens, Walmart, Target, and most grocery stores. You pick one up, pay the set up fee (usually $5 to $10), load money onto it right there or online, and use it when ready.

The trade-off is cost. Retail prepaid cards often charge monthly maintenance fees ($5 to $10), reload fees ($1 to $3 per reload), and ATM fees ($2 to $3 per withdrawal). If you reload the card twice a month and withdraw cash once a month, you could pay $30 to $50 per year just in fees. Read the fee schedule on the back of the package or on the company's website before you buy.

These cards are useful if you need one today and do not mind paying for convenience. They also work if you reload infrequently — if you load money once and spend it down, you may avoid most fees.

Bank prepaid cards: lower fees if you have an account

Many banks offer prepaid cards to customers who already have a checking or savings account with them. Chase, Bank of America, Wells Fargo, and smaller regional banks all have versions. If you bank somewhere, ask whether they offer one — you may get a lower set up fee or no fee at all.

Bank prepaid cards often have lower monthly fees and reload fees than retail cards, especially if you set up direct deposit or keep a minimum balance. Some waive the monthly fee entirely if you reload regularly or maintain a certain balance. You will need to go to a branch or explore online, which takes a few days.

The downside is that not all banks offer prepaid cards, and the ones that do may have fewer features than retail alternatives. Call your bank's customer service line or visit a branch to ask what they have.

Online prepaid card companies: compare before you commit

Companies like Chime, LendingClub, and Varo offer prepaid cards online without requiring you to have a bank account. You sign up on their website or app, verify your identity, and the card arrives by mail in a few days. Some offer no monthly fee, no reload fee, and no ATM fee — but read the full terms, because "no fee" cards often have other costs or restrictions.

Online cards are worth comparing if you plan to use the card regularly. A card with no monthly fee and free reloads can save you $50 to $100 per year compared to a retail card. However, you cannot get one when ready — shipping takes three to seven business days.

Before you sign up, check whether the company reports to the credit bureaus (Equifax, Experian, TransUnion). Most prepaid cards do not, but some online companies do if you meet certain conditions, like setting up direct deposit. If building credit history is important to you, this matters.

What you need to buy and load a prepaid card

At a retail store, you need a valid photo ID (driver's license, passport, or state ID) to set up the card. Some cards also ask for your Social Security number or address. You can load money onto the card using a debit card, bank account, or cash (at some retailers).

For bank and online cards, you will need the same ID information plus a bank account or debit card to fund the card initially. Some online companies verify your identity by asking security questions or sending a code to your phone.

Keep your receipt and the card's customer service number. If the card is lost or stolen, you will need proof of purchase to dispute charges or get a replacement.

Comparing fees across cards: what to look for

Before you buy, compare these fees on the card's packaging or website:

  • set up fee: The cost to buy the card (usually $0 to $10).
  • Monthly maintenance fee: A charge just for having the card active (usually $0 to $10 per month).
  • Reload fee: The cost to add money to the card (usually $0 to $3 per reload).
  • ATM withdrawal fee: The cost to withdraw cash (usually $0 to $3 per withdrawal).
  • Inactivity fee: A charge if you do not use the card for a set period (usually 90 days).
  • Customer service fee: Some cards charge to call customer service (most do not).

Write down the fees for two or three cards you are considering, then add them up for a year based on how you plan to use the card. If you reload twice a month and withdraw cash once a month, a card with a $5 monthly fee, $1 reload fee, and $2 ATM fee costs about $50 per year. A card with no monthly fee, no reload fee, and free ATM withdrawals costs nothing.

Prepaid cards versus other options

A prepaid card is not the only way to spend money without a credit card. A debit card linked to a checking account offers similar spending control and usually costs less in fees. A secured credit card requires a deposit but builds your credit history, which a prepaid card does not. A basic checking account at a bank or credit union often includes a debit card and costs less than a prepaid card if you use it regularly.

If you do not have a bank account and need a card quickly, a prepaid card makes sense. If you have time and want to build credit, a secured card is worth exploring. If you already have a checking account, your debit card is usually cheaper than a prepaid card.

Frequently Asked Questions

Can I use a prepaid card to pay bills online?

Yes, most prepaid cards work anywhere a regular debit card works, including online bill payments. However, some merchants may decline them if they require a billing address that matches a bank account. Check with your card company if a specific bill payment fails.

Do prepaid cards build credit?

Most prepaid cards do not report to credit bureaus, so they do not build credit history. A few online companies report activity if you meet certain conditions, but this is rare. If building credit is your goal, a secured credit card is a better choice.

What happens if my prepaid card is lost or stolen?

Contact the card company's customer service number when ready to freeze the card. Most prepaid cards offer fraud protection similar to debit cards, meaning you are not liable for unauthorized charges if you report them quickly. You can usually get a replacement card mailed to you within a few days.

Can I reload a prepaid card at any store?

It depends on the card. Some cards can be reloaded at the store where you bought them or at partner retailers. Others can only be reloaded online or by bank transfer. Check the card's website or the back of the package to see reload options before you buy.

Is there a limit to how much I can load onto a prepaid card?

Yes, most prepaid cards have a daily load limit (often $500 to $1,000) and a total balance limit (often $5,000 to $15,000). These limits vary by card and by how you load money. Check the card's terms for the specific limits.