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We recommend the best products through an independent review process, and advertisers do not influence our picks. We may receive compensation if you visit partners we recommend. Read our advertiser disclosure for more info. Prepaid debit cards are an alternative to credit cards and traditional debit cards for purchases. They let you spend up to the amount of money you’ve loaded onto your card and can be reloaded repeatedly. The prepaid debit card market is fragmented, meaning no single company carries enough market share to dominate it. But the market is growing, with Allied Marketing Research estimating a compound annual growth rate of 18.2% from 2021 through 2030. Prepaid debit cards can be an excellent choice if you’ve been unable to get a regular bank account with a conventional debit card. You might also consider one if you’re worried about going into debt with a credit card. Prepaid cards can also be useful in combination with the other two as a budgeting tool—after all, you can only spend what’s loaded onto the card. If you’re looking for a prepaid debit card to help manage your money, here are our top options to consider. The 5 Best Prepaid Debit Cards of 2022Best Overall, Best for No Monthly Fee: Bluebird by American Express Bluebird by American Express Pros
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Bluebird charges fewer fees than most prepaid debit cards, making it a solid choice if you’re on a tight budget or simply don’t want to pay for debit card access. You can create sub-accounts for family members—they’ll get their own card tied to the main account. Best for Cash Reloads: American Express Serve FREE Reloads
American Express Serve FREE Reloads Pros
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Cash reloads may be your best option if you don’t have a checking account, making the Amex Serve Free Reloads a top choice. You can also create free sub-accounts for family members. *Eligibility and Benefit level varies by Card. Terms, Conditions and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by AMEX Assurance Company. Best for Walmart Shoppers: Walmart MoneyCardPros
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The Walmart MoneyCard is one of the few reloadable cards that offer rewards, although there is an annual cap. Even if you can’t get the monthly fee waived, the annual rewards are enough to pay for it. The major downside is the fees you’ll have to pay if you need to use ATMs to access your cash. Best for Rewards: American Express Serve Cash Back American Express Serve Cash Back Pros
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Unlimited 1% cash back isn’t too impressive among credit cards, but it’s the gold standard for prepaid debit cards. The American Express Serve Cash Back charges a $7.95 monthly fee, but you can make up for it if you spend at least $795 per month with the card. *Eligibility and Benefit level varies by Card. Terms, Conditions and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by AMEX Assurance Company. Best for Tweens/Teens: FamZoo Prepaid Debit Card FamZoo Prepaid Debit Card Pros
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The FamZoo Prepaid Debit Card isn’t the only prepaid card that offers sub-accounts. But it provides a whole suite of features that can help parents teach their children how to manage their money.
What Is a Prepaid Debit Card?A prepaid debit card is a means of payment. As with a traditional debit card, you can use a prepaid card to make purchases online and in-person wherever the card is accepted. Prepaid cards are typically issued on the same payment networks as regular debit and credit cards, including Visa, Mastercard, American Express, and Discover. The difference between a prepaid debit card and a regular debit card is that the former isn’t tied to a checking account with a bank or credit union. Also, you can only use the funds that you’ve loaded onto the card. While some prepaid cards offer overdraft protection, that’s not as universal as with traditional bank accounts. Prepaid debit cards are sometimes compared to secured credit cards, but the two are very different. With a prepaid debit card, you simply use the money you load onto your card. By contrast, a secured credit card requires that you make an upfront deposit, which becomes your credit line. You can use that credit line, pay it off, and continue to use it over and over again. You never actually use the deposit money, and you can get the deposit back when you close the account or potentially even sooner. Also, a secured credit card can help you build credit, which won’t happen with a debit card. Many prepaid debit cards allow you to create sub-accounts, so you can provide cards to other members of your family, all of which are tied to the same main account. However, many prepaid cards charge a variety of fees, including monthly fees, transaction fees, reload fees, ATM fees, and others. For that reason, it’s important to shop around and compare several cards before you choose one. Who Should Get a Prepaid Debit Card?The biggest target market for prepaid debit cards is people who are unbanked or underbanked, either by choice or circumstance. It can be challenging to qualify for a bank account if you don’t have a Social Security number or if you’ve had issues with previous bank accounts, such as unpaid negative balances or involuntary closures. Prepaid debit card issuers don’t check your banking history when you apply. And while you may be asked for a Social Security number, it’s not a requirement for all prepaid cards. You might also consider a prepaid debit card if you need some help with your budgeting. If you want to limit how much you spend for a given period on certain expenses, you can transfer money to your prepaid debit card and only use that payment method for the expense category. Some prepaid cards even allow you to set up multiple cards for different budget categories. Finally, some people might consider a prepaid card an alternative to a credit card. While a prepaid card won’t help you build credit, it can be a good way to avoid interest charges and stay out of credit card debt. And while you won’t get standout rewards and benefits compared with the best credit cards, you can still earn cashback or other rewards with some of the top prepaid cards. What Should You Look for in a Prepaid Debit Card?There are several different factors to consider as you compare different prepaid debit cards. Some of the most important ones are:
Which of those features will be most important to you depends on your personal situation and how you plan to use your card. What Are Alternatives to Prepaid Debit Cards?Prepaid debit cards are just one way to pay, of course. Paying with cash is a good option if you don’t want to be bothered with opening an account or managing a card. But cash isn’t conducive to online transactions, and there’s no protection if you lose your cash or someone steals it. A credit card, if you’re eligible for one, can be an excellent choice if you pay your bill on time and in full every month, want to take advantage of rewards and other perks, or need to build your credit. However, credit cards make it easy to accumulate too much debt if you’re not careful. Finally, a traditional debit card is a convenient option if you can qualify for a checking account and don’t need additional tools to help you budget. Otherwise, you may want to get a prepaid debit card instead. Which prepaid card is the best?The 5 Best Prepaid Debit Cards of 2022. Best Overall, Best for No Monthly Fee: Bluebird by American Express.. Best for Cash Reloads: American Express Serve FREE Reloads.. Best for Walmart Shoppers: Walmart MoneyCard.. Best for Rewards: American Express Serve Cash Back.. Best for Tweens/Teens: FamZoo Prepaid Debit Card.. What is the best prepaid credit card with no fees?The 10 Best Zero-Fee Reloadable Prepaid Cards. MOVO® Virtual Prepaid Visa® Debit Card Read our review. ... . Starbucks® Rewards Visa® Credit Card Read our review. ... . Fifth Third's Access 360° Prepaid Debit Card Read our review. ... . Serve® Prepaid Card Read our review. ... . WeSwap Mastercard® Debit Card Read our review.. Are prepaid credit cards a good idea?Prepaid cards offer a wealth of benefits to consumers: there is less risk of overspending, they're safer than cash, they're easy to use and reload and they're a viable alternative to using traditional credit or debit cards. Less risk of overspending. Prepaid cards offer less risk of overspending than credit cards.
Which prepaid card has lowest fees?The Bluebird by American Express prepaid debit card has the lowest fees of all the cards on this list. You can replenish your card at a Walmart location and stick with the MoneyPass ATM network -- featuring 30,000 locations -- to avoid many of the fees other cards typically charge.
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