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Prepaid debit cards are an alternative to credit cards and traditional debit cards. 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 traditional debit and credit cards as a budgeting tool. After all, you can only spend what’s loaded onto the card.
If any one of these reasons resonates with you, here are the best prepaid debit cards to consider.
Best Prepaid Debit Cards of 2023
- 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
Best Overall, Best for No Monthly Fee : Bluebird by American Express
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Bluebird by American Express
- Monthly fee: None
- No-fee ATMs: 30,000+
- Rewards: No
Bluebird by American Express offers an impressive combination of savings, convenience, and benefits for cardholders. Users can expect fewer fees, including no monthly fee, an abundance of free ATM access, plus no-cost extras that they can depend on for secure card purchases, attractive offers, and more.
No fee for monthly maintenance, activation, online card purchases, and more
Provides several perks, including purchase protection, roadside assistance, and Amex Offers
Access to more than 30,000 fee-free ATMs
Cash reloads at Family Dollar locations are free, as are direct deposit, debit card transfers to other Bluebird account holders, and mobile check deposits
No rewards
Cash reloads at other retailers may incur a fee
Mobile check deposits take 10 days unless you pay a fee
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
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American Express Serve FREE Reloads
- Monthly fee: $6.95 in most states
- No-fee ATMs: 30,000+
- Rewards: No
American Express Serve FREE Reloads is an ideal card for those who use a prepaid debit card frequently and must reload more often. Cardholders have a broad choice of locations where they can add money at no cost. Plus, access to no-fee ATMs is a bonus that fits right in with the card's fee-free refills.
No fee when you load cash onto your card at more than 45,000 Walmart, 7-Eleven, CVS, Rite Aid, Dollar General, and Family Dollar locations
Other reload options include direct deposit and bank account transfers
Access to more than 30,000 fee-free ATMs
Eligible purchases get purchase protection*
There’s a $6.95 monthly fee (no fee in New York, Texas, or Vermont)
Mobile check deposits take 10 days unless you pay a fee
No rewards or other major benefits
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 MoneyCard
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Walmart MoneyCard
- Monthly fee: $5.94 or waived with $500 monthly reload
- No-fee ATMs: No, $2.50 per withdrawal
- Rewards: 1%-3% cash back, with annual cap
If Walmart is a preferred shopping destination, then the Walmart MoneyCard may be the smart choice for a prepaid debit card. The multi-tiered cash-back options mean money in your pocket. And the free reloads don't just save you money on card refills. Load enough every month and they can eliminate the monthly fee.
Earn 3% cash back at Walmart.com, 2% back at Walmart fuel stations, and 1% back at Walmart stores
Earn 2% annual interest on a linked savings account
No monthly fee if you load $500 or more each month
Free cash reloads via the Walmart MoneyCard App, direct deposit, mobile check deposit, and bank transfer
Overdraft protection up to $200 with opt-in and eligible direct deposit
Cashback is capped at $75 per year
The standard monthly fee is $5.94 if you don’t load $500 or more each month
All ATM withdrawals will incur a $2.50 fee
Mobile check deposit may take up to 5 days
The Walmart MoneyCard is one of the few reloadable cards that offers 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
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American Express Serve Cash Back
- Monthly fee: $7.95 in most states
- No-fee ATMs: 30,000+
- Rewards: Unlimited 1% cash back
The American Express Serve Cash Back serves up unlimited 1% cash back rewards whenever you use it for your purchases. Compared to other prepaid debit cards that include a rewards benefit, this card's cash-back uncapped potential stands apart. Plus, the fee-free ATMs help you keep more of your money.
Offers unlimited 1% cash back on all purchases
Access to more than 30,000 fee-free ATMs
Eligible purchases will receive purchase protection*
You’ll pay a $7.95 monthly fee (no fee in New York, Texas, or Vermont)
Cash reloads cost up to $3.95
Mobile check deposits take 10 days unless you want to pay a fee
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
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FamZoo Prepaid Debit Card
- Monthly fee: $5.99, less with advance payment
- No-fee ATMs: Yes
- Rewards: No
We chose FamZoo as the best card for tweens and teens because parents, children, and money education are at the core of its offering. Parents can get four prepaid cards at no charge, activate automatic transfers, and control card use to encourage smart spending and saving habits.
You can order up to four prepaid cards for free and set up automatic recurring transfers (additional cards cost $3 apiece)
Parents can lock and unlock cards and encourage kids to save with interest paid from the parent’s account
You can also tie transfers to allowances and chores or even create a non-monetary rewards system
Access to fee-free ATMs
You’ll pay a $5.99 monthly fee, though you can reduce it if you pay in advance
There is a $4.95 fee to load cash onto the card at participating retail locations
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.
Final Verdict
When it comes to prepaid debit cards, Bluebird by American Express is our choice for the best overall category. Not only does it have no monthly fee and no-cost access to over 30,000 ATMs. It also offers cardholders the added complimentary benefits of purchase protection and roadside assistance.
What else is free? Direct deposits, debit card transfers to other Bluebird account holders, and mobile check deposits.
And while it may not include a rewards program, the absence of various fees for activation, maintenance, and online purchases can more than make up for it. Plus, family members can enjoy the freedom of having their own cards with sub-accounts that link to the primary account.
We think that Bluebird can be a smart choice for those searching for a straightforward, convenient prepaid debit card option.
Compare the Best Prepaid Debit Cards
| Card | Monthly Fee | No-Fee ATMs | Rewards | Cash Reloads |
|---|---|---|---|---|
| Bluebird by American Express | No | Yes, 30,000+ | No | Free at Family Dollar; potential fee elsewhere |
| American Express Serve FREE Reloads | $6.95 in most states | Yes, 30,000+ | No | Free at Walmart, 7-Eleven, CVS, Rite Aid, Dollar General, Family Dollar |
| Walmart MoneyCard | $5.94 unless you load $500 or more per month | No, $2.50 per withdrawal | 1%-3% cash back with annual cap | Free via the Walmart MoneyCard app, direct deposit, mobile deposit, bank transfer |
| American Express Serve Cash Back | $7.95 in most states | Yes, 30,000+ | 1% cash back with no limit | Fees up to $3.95 |
| FamZoo | $5.99, or less with advance payment | Yes | No | $4.95 at participating retailers |
In the News
In the News: Prepaid debit cards can be used for many things. In 2023 they’re being more widely adopted for a few specific situations, such as a way for employers to pay their employees or for benefit programs like government assistance or healthcare spending accounts.
Demand isn’t as strong for regular prepaid debit cards that you might open on your own, however. That could be because more people are getting fed up with the high fees these cards charge—which leaves more opportunity for lower-cost prepaid debit cards going forward.
Pros and Cons of Prepaid Debit Cards
No credit check
Limits your spending
Safer than carrying cash
Can be used as a banking alternative
Lots of fees
Doesn’t earn interest
Doesn’t help build credit
Pros Explained
- No credit check: Anyone can use a prepaid debit card as long as they’re willing to pay the fees—regardless of your banking and credit history.
- Limits your spending: You can only spend as much as you load onto the card so it’s a good way to keep yourself from going into debt, especially if you’ve had problems overdrafting bank accounts or borrowing too much money in the past.
- Safer than carrying cash: As long as you keep your PIN safe no one will be able to use your card, even if you lose it. If that does happen, you have certain protections against fraud or other unauthorized use.
- Can be used as a banking alternative: Prepaid debit cards can be used in most of the same ways you would use a bank account. You can generally deposit checks, receive paychecks and benefits, get cash from an ATM, and use your card to make purchases in stores and online.
Cons Explained
- Lots of fees: Most prepaid debit cards are much more expensive than simple checking accounts. You might have to pay a card activation fee, monthly fees, cash reload fees, ATM withdrawal fees, or others.
- Doesn’t earn interest: Prepaid debit cards don’t offer interest like you would earn on a savings account over time. That can make it harder to save money toward your financial goals.
- Doesn’t help build credit: Since you’re not borrowing money, prepaid debit card issuers don’t report activity to the credit bureaus. So while it looks like you’re using a credit card, you won’t actually be building credit.
Make sure your prepaid debit card comes from a bank that’s insured by the Federal Deposit Insurance Corporation (FDIC) and that you register your account. That way you’ll receive your money back if the bank ever fails.
Alternatives to Prepaid Debit Cards
Prepaid debit cards are popular for a lot of reasons, but they’re not your only option. Here are a few other things to consider if you’re trying to see whether prepaid debit cards are actually right for you or not:
- Cash: Using cash for everything has its pros and cons, but if you’re careful with how you handle it you can use it to avoid many of the fees that prepaid debit cards charge.
- Fintech banking apps: Many banking apps like Varo make a point of working with people who aren’t able to get approved for a traditional bank account, and offer terms that are just as good—if not better—than you’d find at most brick-and-mortar banks.
- Secured credit card: If you have a few hundred dollars to set aside as a refundable deposit, you may be able to open a secured credit card, which can be a good first step to building credit.
- Second-chance bank account: Many banks offer “second-chance checking” accounts to people who might otherwise be denied a bank account, which is why many people rely on prepaid debit cards in the first place. Over time you may be able to work your way up to a better, more affordable checking account.
Anyone who wants a bank account in the U.S. can get one, even undocumented immigrants. You may have a more limited range of options, but it is possible if you want one.
Frequently Asked Questions
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What Is a Prepaid Debit Card?
A prepaid debit card is like a traditional debit card except that you load it with funds in order to use it. (A traditional debit card is funded by the checking account that it's linked to.) You can use a prepaid debit card to make purchases online and in-person, wherever the card is accepted. Prepaid cards are typically issued by the same payment networks that issue regular debit and credit cards, including Visa, Mastercard, American Express, and Discover.
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Who Should Get a Prepaid Debit Card?
People who are unbanked or underbanked, either by choice or circumstance, can benefit from a prepaid debit card. Prepaid debit card issuers don’t check your banking history when you apply. A Social Security number is not necessarily a requirement. If you need assistance with budgeting, a prepaid debit card can help by limiting how much you spend to the funds loaded to it. Finally, a prepaid card can be an alternative to a credit card and a good way to stay out of credit card debt.
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What Should You Look for in a Prepaid Debit Card?
There are several factors to consider as you compare prepaid debit cards. Some of the most important ones are:
- Fees (including monthly fee waiver options)
- Free ATM access
- Free reload options
- Rewards
- Fraud and purchase protection
- Flexibility with sub-accounts
- Savings options
- Mobile app accessibility
The features that will be most important to you depend on your personal situation and how you plan to use your card.
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What Are Alternatives to Prepaid Debit Cards?
Paying with cash is always an option. 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, may be a good choice, especially if you pay your bill on time and in full every month and 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.
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What Is the Best Prepaid Debit Card?
We rate Bluebird by American Express as the best prepaid debit card. Unlike other prepaid debit cards Bluebird doesn’t charge very many fees, and the ones it does charge are easy to avoid in many cases. It’s also free to reload your card via direct deposit, ACH transfer from another checking or savings account, mobile check deposit, debit card transfer, or in person at any Family Dollar location.
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What Are the Downsides of Prepaid Debit Cards?
The main downside of prepaid debit cards is how expensive they are. Most prepaid debit cards charge lots of fees (depending on how you use them), more than you’ll generally pay if you use a bank account or a credit card. This leaves less money for you to spend. Prepaid debit cards also don’t help you build credit.
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What Is the Best Prepaid Card With No Fees?
Bluebird by American Express is the best prepaid debit card if you’re looking to avoid fees. There are no reloadable prepaid debit cards that are truly fee-free, however. The Bluebird by American Express charges a $2.50 fee for out-of-network ATM cash withdrawals and a $3.95 fee to load cash onto your card (except at Family Dollar locations, which offer free reloads), for example.
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What’s the Best Prepaid Card for Direct Deposit?
Bluebird by American Express is also the best prepaid debit card option if you’re looking for a way to receive your direct deposits without having to pay a fee. The card doesn’t charge very many other fees either, especially if direct deposit is your main way of loading money onto the card. It offers early direct deposit so you can potentially receive your money sooner than with a traditional card, even one from a bank.
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