Shop to find the best card for you
There are many types of prepaid cards.
When you’re shopping, check to see that the card has the features you need and
the fees associated with various features.
Fees and fee structures for
prepaid cards can be very different. Asking a few questions can help you choose the right card
for your situation.
Decide where you will want to use the card, and make sure
the card you pick can be used at those locations. Prepaid cards that feature a
network brand (like Visa, MasterCard, American Express, or Discover) can be
used at any location that accepts that network brand. Other types of cards are
good only at a specific store or group of stores, or on your public
transportation system. Remember, prepaid cards may look like debit cards, credit cards, or gift cards, but they are
often quite different.
The Bureau’s rule requiring these fee disclosures came into
effect April 1, 2019, although it may take some time before you start seeing
the required disclosures on card packages in retail stores due to phase-in
rules. In time, the card packaging will include a chart that contains certain
key fees and other information about the prepaid account, to comparison shop
between cards at the store. The packaging will also list a website with similar
information regarding fees and other key information about the card. You may
want to go online to review this additional information.
When you buy
You can buy prepaid cards at retail locations (such as
grocery stores and drug stores), online, over the phone, or from some banks and
credit unions. If you buy the card online,
you may then be issued a virtual card, or you may receive a physical card in
the mail at a later time.
When you buy a prepaid card, you’ll have to pay the
initial amount that you want to load onto the card, often termed the “initial
load”, plus the cost of the card. Some cards require a minimum initial
load.
Registering your card
Some prepaid card providers require you to register your
card upon, or just after purchase, by asking you to provide certain personal
information, such as:
- Full name
- Street address (no P.O. boxes)
- Date of birth
- Email
- Phone number
- Social Security number, taxpayer identification number, or other identifying number if you are not a U.S. citizen
This personal information is used to verify your identity,
which may be necessary before you can use certain card features, such as
reloading money onto the card or using the card online or at an ATM. Until you
register the card, your prepaid card provider is not required to provide
protections in case of errors or loss or theft of your card. Also, if your card
offers deposit insurance, you generally will need to register your prepaid card
to become eligible for deposit insurance.
