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

Prepaid cards are sold in three main places: big-box retailers like Walmart and Target, banks and credit unions, and online through card issuers directly. The card itself is usually free or costs $5 to $10 at the register. The real cost comes later — monthly maintenance fees, ATM withdrawal fees, and reload fees can add up fast depending on which card you choose and how you use it.

The card you pick matters more than where you buy it. A card with a $10 monthly fee costs you $120 a year just to hold it, even if you never use it. A card with a $2.50 ATM fee means you lose money every time you take out cash. Before you hand over money at checkout, you need to know what the card will actually cost you based on how you plan to use it.

Key Takeaways

  • Prepaid cards sold at retail stores (Walmart, Target, CVS) are usually the most expensive option because they charge monthly fees, ATM fees, and reload fees.
  • Bank-issued prepaid cards often have lower or no monthly fees, especially if you set up direct deposit or keep a minimum balance.
  • Online-only prepaid cards from companies like NetSpend, Chime, and GoBank sometimes offer no monthly fee, but you need to read the fee schedule before you load money.
  • The same card sold at different retailers may have different fee structures, so compare the fee schedule, not just the upfront price.
  • Prepaid cards do not build credit history, so they are not a path to a traditional credit card — they are a payment tool only.

Retail store prepaid cards and their true cost

When you buy a prepaid card at Walmart, Target, CVS, or a gas station, you are usually buying one of a handful of national brands: Green Dot, NetSpend, or Vanilla. The card costs $5 to $10 at the register, but that is only the set up fee. Once you own it, the monthly maintenance fee kicks in — usually $5 to $10 per month if you do not meet a minimum activity requirement.

These cards also charge you to do basic things. Withdrawing cash at an ATM outside the card issuer's network costs $2 to $3 per transaction. Reloading the card at a retail location costs $3.95 to $5.95. If you need to check your balance at a teller, that costs money too. A person who uses the card heavily but does not meet the monthly activity threshold can easily spend $30 to $50 a month in fees alone.

The upside is availability — you can walk into almost any store and buy one today. The downside is that retail prepaid cards are designed to make money from fees, not to be your cheapest option. They work best if you load a large amount of money once and spend it down slowly, or if you meet the activity threshold (usually 10 debit transactions per month) that waives the monthly fee.

Bank and credit union prepaid cards

Many banks and credit unions offer their own prepaid cards, and these often have lower fees than retail versions. Chime, for example, is a bank-issued card with no monthly fee, no ATM fees at in-network ATMs, and no fee to reload. Other banks like Capital One and Bancorp offer prepaid cards with no monthly maintenance fee if you set up direct deposit.

The catch is that you usually have to open an account online or visit a branch to get one. You cannot walk into a store and buy it on the spot. You also need to provide an ID and sometimes a Social Security number, which means a background check. If you have a history of fraud or unpaid bank fees, some banks will decline you.

Bank prepaid cards are worth exploring if you have a bank account already or if you are willing to open one. The fee structure is usually much simpler — often just a monthly fee (or no fee) and maybe an out-of-network ATM charge. You also get customer service by phone or in person, which matters if something goes wrong with your card.

Online-only prepaid card issuers

Companies like NetSpend, GoBank, and Payoneer sell prepaid cards directly through their websites. You order the card online, 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 have no monthly fee if you meet a minimum monthly deposit or transaction requirement.

The advantage is low or zero fees if you use the card regularly. The disadvantage is the wait time — you cannot use the card the same day you order it. You also have less recourse if something goes wrong. These companies have customer service, but it is usually email or chat only, not phone support.

Online prepaid cards work well if you are planning ahead and do not need the card when ready. They are also a good option if you want to avoid the retail markup and do not have a bank account to use instead.

How to compare prepaid cards before you buy

Every prepaid card issuer publishes a fee schedule — a document that lists every charge you might face. Before you buy, get the fee schedule and look for these specific costs: monthly maintenance fee, ATM withdrawal fee (both in-network and out-of-network), reload fee, balance inquiry fee, and customer service fee. Add up what you expect to pay based on how you plan to use the card.

For example, if you plan to withdraw cash twice a month from an ATM outside the card's network, and the out-of-network fee is $3, that is $72 a year just in ATM fees. If there is also a $5 monthly fee, that is another $60 a year. A card with no monthly fee and no ATM fees would save you $132 a year.

The fee schedule is usually on the card issuer's website or on a sticker on the card packaging at the store. If you cannot find it, ask the cashier or call the customer service number on the back of the card. Do not buy the card until you have read the full fee schedule.

Prepaid cards at different retailers may have different fees

The same prepaid card brand sold at Walmart might have a different fee structure than the same card sold at Target or CVS. This happens because retailers negotiate different terms with the card issuer. A Green Dot card at Walmart might have a $5.95 monthly fee, while a Green Dot card at CVS has a $7.95 monthly fee.

This means you should compare not just the card brand, but the specific version sold at the specific store where you plan to buy it. Check the fee schedule on the packaging or ask the cashier. If the fees are too high, try a different retailer or a different card brand.

What prepaid cards do not do

Prepaid cards are not credit cards, and they do not build a credit history. The card issuer does not report your payment activity to the credit bureaus, so using a prepaid card responsibly will not improve your credit score. If you are trying to build credit, a prepaid card is not the right tool — a secured credit card or a credit-builder loan would be better choices.

Prepaid cards also do not offer the fraud protections of a credit card. If someone steals your card number, your liability depends on how quickly you report it. Federal law limits your liability to $50 if you report the theft within two business days, but some card issuers offer better protection. Check the cardholder agreement before you buy.

Frequently Asked Questions

Can I use a prepaid card to pay bills online?

Yes, most prepaid cards work anywhere a debit card works, including online bill payment. You will need the card number, expiration date, and CVV (the three-digit code on the back). Some cards also let you set up automatic payments. Check your card's website to see if bill pay is available.

What happens if I lose my prepaid card?

Call the card issuer when ready — the number is usually on your receipt or the card's website. Most issuers will freeze the card right away to prevent fraud. You can usually request a replacement card, though there may be a fee ($5 to $15). Any money left on the card is protected as long as you report it quickly.

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

Retail prepaid cards usually do not require a Social Security number — you just pay and set up at the register. Bank-issued and online prepaid cards typically do require one because the issuer has to verify your identity for anti-fraud reasons. If you do not have a Social Security number, stick with retail cards.

Can I reload a prepaid card at any store?

No. You can usually reload at the store where you bought it or at other locations in the same retail chain. Some cards also let you reload online through bank transfer or direct deposit. Check your card's website or call customer service to find all the reload locations.

Is a prepaid card safer than carrying cash?

Yes. If your card is stolen, you can report it and freeze the balance. If cash is stolen, it is gone. Prepaid cards also give you a record of every transaction, which is useful for budgeting. The downside is that you pay fees for the convenience — cash is free.