A prepaid debit card is a lot like a gift card, except it can be used anywhere. Prepaid debit cards come with a predetermined balance. Once that balance has been used up, you can no longer use the card to make purchases. You can reload the debit card or simply buy a new prepaid one to continue.
Here we’ll cover everything there is to know about prepaid debit cards. In addition, we’ll explore some of our top picks for prepaid debit cards to use, such as the prepaid debit card company an American businessman founded.
So What Is a Prepaid Debit Card?
As discussed above, prepaid debit cards work much the same way as gift cards. There are, of course, a few features that make prepaid debit cards different from gift cards, such as the ability to use the prepaid debit card at any business and the ability to make withdrawals at ATMs.
Additionally, it is possible to refill a prepaid debit card. In contrast, you cannot reload a gift card after it has been used up. There are a few different ways you can refill a prepaid debit card:
The first option is to take your prepaid debit card to the bank or store you got it from and have them add more funds to the card. For example, if you bought a prepaid Visa debit card, there are sites that allow you to view locations that will let you refill the card.
Apart from taking the card to where you got it from or to a location that offers reloading services, you can also have your paychecks directly deposited onto your prepaid debit card. To do this, you’ll want to ensure you purchase a prepaid debit card that allows for direct deposits.
Similar to direct deposits, you can transfer money from your bank account to a prepaid debit card through most banking apps. To do this, add the prepaid debit card as the payment recipient. You will need the prepaid debit card’s routing number, which is available if you purchase a card that accepts direct deposits (as mentioned above). Then you simply transfer the funds to that card.
So, now that we have gone over the specifics of what a prepaid debit card is, let’s discuss some reasons why you may want to use a prepaid debit card.
Why Are Prepaid Debit Cards Used?
There are many reasons why prepaid debit cards exist. For starters, prepaid debit cards are a very popular gift idea because they are similar in function to gift cards. The receiver of the prepaid debit card is not able to access any of your financial information or reload the card using your money. Suppose you want to give a prepaid debit card as a gift. In that case, we recommend going for a Visa prepaid debit card because you can purchase them at most stores with a few different preloaded amounts (such as $50, $100, or $150).
Another reason to buy a prepaid debit card is for your own use. Someone may choose to use a prepaid debit card to help themselves budget. This is because the cards have a set amount and must be refilled manually. In contrast, a standard debit card is simply linked to your checking account at your bank. Additionally, prepaid debit cards are not linked to your name, so many people use prepaid debit cards for privacy.
Recommended Prepaid Debit Cards
There are a lot of different prepaid debit cards out there, all of which have slight differences. We liked a couple of cards in particular and thought we would briefly outline what sets them apart from the others:
Bluebird by American Express
Bluebird is a versatile prepaid debit card with no fees and no ATM withdrawal fees. If you’re looking for a prepaid debit card that offers direct deposit and other helpful tools, we recommend using Bluebird.
Visa Prepaid Debit Card
As we mentioned above, Visa prepaid debit cards are great prepaid debit cards if you’re considering using them for a gift or just a few purchases. These cards are also readily available and sold at most stores.
And that’s it! Now you have the information to decide whether and which prepaid debit cards are suitable for your financial needs.
