How Does a Prepaid Debit Card Work?
A prepaid debit card is a card that already has funds on it, so the credit limit is the amount of money left on the card. You don’t have to get approved for a certain limit like you would with a credit card. Instead, you load the amount that you want to be on the card, and that becomes your limit. You can use a prepaid debit card online and at most retailers that accept a regular debit card. However, you usually can’t rent a car with a prepaid debit card. When you use the card to purchase something, the purchase is immediately deducted from the balance.
How Much Does a Prepaid Debit Card Cost?
Prepaid debit cards vary in costs. Some are free, some charge upfront fees, and others charge monthly fees. You can typically expect to pay from $1 to $9.95 for the upfront card purchase fee. Monthly fees typically go up to $9.95. Keep in mind, there may be additional fees whenever you want to “reload” the card by putting more money on it. If you use the card at an out-of-network ATM, there are fees associated with that, too.
Is a Prepaid Debit Card Worth the Cost?
It is generally cheaper to get a debit card through your bank rather than getting a prepaid debit card. A prepaid debit card works best for a teenager or employee who you want to ensure stays within the card’s limit. If one of those situations applies to you, it may be worth the fees. Additionally, if your credit isn’t the best, or if you can’t open a bank account for whatever reason, then a prepaid debit card is worth the cost. Just know all of the associated costs before you get a prepaid debit card so you aren’t surprised by monthly fees, reload fees, or any other costs along those lines.
How We Chose the Best Prepaid Debit Cards
There are tons of prepaid debit cards available, and we only wanted to recommend the best ones. We researched and reviewed many cards before narrowing them down to the top 7. We chose these best prepaid debit cards based on factors like their fees, features, perks, and how easy they are to use.