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Home › Pay › Common problems › Prepaid debit cards
Fees and services

Prepaid debit cards

Prepaid debit cards can be useful if you don't have a bank account, but fees can quietly reduce your balance. Some cards charge a monthly fee, plus fees to reload cash, use ATMs, call customer service or leave the card unused. Federal rules require a short fee chart on the package, which makes comparing cards easier.

Common problems to watch for

  • A low upfront price with a monthly fee charged later
  • Fees to add cash at a store
  • Inactivity fees that drain cards left in a drawer
  • Charges for calling customer service or checking your balance at an ATM
  • Paying a fee for each purchase instead of a monthly plan

Had one of these happen? Telling others what you were charged helps them avoid it.

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Free and low-cost alternatives

Bank On certified accountsLow-cost bank and credit union accounts certified by the Bank On program have no overdraft fees. Search for one at joinbankon.org.
The short-form fee chartPrepaid card packages must show a short fee chart with key fees. Comparing these charts before you buy costs nothing.
Free account info onlineCard issuers must make balance and transaction history available for free. Use the card's official app or website instead of paid phone calls.

Availability depends on your device and model. AblePro has no relationship with any company named here.

What fair pricing looks like

A fair prepaid card has few fees and a fee chart that is easy to understand. If you use a card often, a low-cost bank account may cost less overall.

Before you pay

  • Read the short fee chart on the package before buying
  • Check monthly, reload, ATM and inactivity fees
  • Find out where you can add cash without a fee
  • Register the card so you can report problems if it's lost or stolen
  • Compare the yearly cost with a low-cost bank account

How to cancel

  1. Spend down or withdraw your balance first, choosing the cheapest way to do it.
  2. Contact the card company through its official app or website and ask to close the card.
  3. Ask how to get any remaining balance back, and whether a fee applies.
  4. Stop any direct deposits to the card before closing it.

Step-by-step cancel guide for iPhone, Android and PayPal →

Common questions

Are prepaid cards protected if they are lost or stolen?

Federal rules give prepaid account holders protections against unauthorized charges, similar to debit cards, if you notify the card company promptly. Registering your card and keeping its customer contact information handy makes it easier to report a problem quickly.

How can I compare prepaid card fees?

Federal rules require a short-form fee chart on the package or before you sign up online. It lists key fees like monthly, per-purchase, ATM, reload, customer service and inactivity fees. A longer list with every fee must also be available. Compare these side by side.

Is a prepaid card cheaper than a bank account?

It depends on how you use it. Some people pay more with a prepaid card once monthly and reload fees add up. Look at your expected fees over a year and compare them with a low-cost account, such as a Bank On certified account.

General consumer information, not legal or financial advice. Reports reflect the experiences and opinions of their writers, not AblePro, Inc. We check reports against our posting rules but do not verify them.