Best Prepaid Cards
Based on In-Depth Reviews

A prepaid card might look like any other credit or debit card, but it is in a class by itself. Not to be confused with reloadable retailer cards or gift cards, prepaid cards are general-purpose cards that consumers recharge or "load up" and use to make purchases, withdraw cash, and receive direct deposits. Essentially, prepaid cards combine the convenience of a credit or debit card with the ability to allow the customer to set their spending limit according to their budget. Most prepaid cards are affiliated with popular card networks, so they look like any other card in that they have a magnetic strip, chip, and a familiar logo such as American Express, Visa or MasterCard. Concerning federal consumer protections, certain cards come with regulations that limit consumers losses when funds are stolen or cards are lost.  

Prepaid cards are gaining the most traction among consumers who do not have access to other forms of electronic payments, such as debit or credit cards, or prefer not to use them for certain transactions. A convenient way to store money, prepaid cards are largely used to limit spending, avoid bank and check cashing fees, and make electronic payments. Many prepaid cards also include features like text alerts, rewards and discount programs, and international money transfers. They are available to anyone, regardless of their credit rating, income, or whether they have a bank account. Therefore, they serve as a great tool for helping teenagers and students keep track of their finances and learn to manage their budget without the risk of getting into debt.  

Because they are not linked to a bank account, customers who own prepaid cards don’t have to worry about interests, finance charges, or late payments. On the downside, the big catch with prepaid cards are the fees, which can include monthly fees, ATM withdrawal fees, transaction fees, balance inquiry fees, and the list goes on. Nevertheless, there are several good options for low-fee, high-feature prepaid cards. Another drawback is the lack of a common language for the wide variety of terms that describe basic fees and features, which could make it difficult for customers to compare prices and brands. For this reason, all features and fees should be taken into account and the customer should be sure to read the small print carefully before committing to a specific prepaid card.