The 10 best prepaid debit cards of December 2024

The Greenlight Debit Card For Kids is specifically designed for families and offers unique features that promote financial education for kids while giving parents control and oversight. For example, parents have the ability to monitor and control where and how much their children can spend, including setting specific store-level spend controls. It also allows parents to pay allowances, set spending limits, and categorize these allowances for saving, spending, and giving. The card supports real-time notifications of each transaction, so parents can stay up-to-date on card usage. 

Though there is a monthly fee that starts at $4.95, the Greenlight Debit Card For Kids doesn’t charge any fees for transactions, ATM usage, adding funds, or checking your balance. Additionally, certain membership levels earn 1% cash back, which is deposited to savings (and savings accounts earn up to 5%). 

NetSpend caters to a range of financial needs by offering multiple card plans, each with its own fee structure. With the monthly plan, you can pay a reduced monthly fee of $5.00 as long as you receive at least $500 in direct deposits each month. There are no transaction fees under this plan.

A key feature of this card is its “purchase cushion.” If you perform a transaction that exceeds your available balance by $10 or less, Netspend may choose to approve the purchase anyway without charging you an overdraft fee. You’ll need to make up for any negative balance though. Enrollment is required for this program.

Another perk of the Netspend prepaid card is that it earns rewards. Simply visit your Rewards page to see which customized offers are available, and click to activate the offers you want.

You can then use your card at those retailers to redeem your offers.

The Direct Express card is free of most fees, including monthly fees, transaction fees, and cash reload fees. Users also receive one free ATM withdrawal with each deposit to the card. Additionally, the card includes federal protections against unauthorized transactions, further bolstered by Mastercard’s Zero Liability Protection, making it a secure and practical option for managing federal benefits.

Cardholders can also participate in the PayPerks program, which offers the opportunity to learn about financial management through educational modules. By participating in these modules and taking quizzes, cardholders can earn chances to win cash prizes in monthly sweepstakes.

How to use a prepaid card
Pros and cons of prepaid cards

Issued by Comerica Bank for the U.S. Treasury, the Direct Express prepaid card allows for automatic deposit of federal benefits directly to the card. You can use it wherever Mastercard is accepted, including for purchases, bill payments, and ATM cash withdrawals. 

Issued by Sutton Bank, the Cash Card is a Visa debit card linked to the user’s Cash App balance, offering a convenient way to access funds for purchases anywhere Visa is accepted. It comes with zero monthly fees, transaction fees, and cash reload fees. Plus, in-network ATM fees can be avoided if you receive at least $300 in direct deposits monthly. Its integration with Cash App’s broader financial services, including money transfers, stock investments, and Bitcoin trading, making it a robust financial tool.

The card also features instant discounts at certain merchants like coffee shops and restaurants. Users can also enroll in round-ups to help grow their savings. Security-wise, it offers helpful features like the ability to pause the card instantly via the app and PIN or fingerprint locks.

The Bluebird by American Express is a prepaid debit card created in partnership with Walmart. It stands out for its lack of monthly, transaction, and activation fees. Users can benefit from features like direct deposit and online bill payments. It also offers a robust mobile app for account management, including mobile check deposit and money transfers. 

As an American Express product, it includes perks such as purchase protection, fraud protection, and roadside assistance. Free ATM withdrawals are available at MoneyPass ATMs, and cash can be easily reloaded for free at Walmart. Additional features include the ability to create subaccounts for precise budget management and 24/7 customer service with emergency assistance.

The MOVO Digital Cash Card is a prepaid, reloadable debit card that emphasizes a digital-first banking experience. A standout feature is the ability for users to create temporary, disposable digital card numbers for secure online transactions, which goes a long way toward preventing fraud. It also helps you prevent random subscription fees if you happen to sign up for a free trial then forget to cancel before the fee hits. That alone could make the card worth it.

But if you prefer in-person shopping, don’t worry: users also receive a physical Mastercard debit card that can be used in stores, online, and at ATMs. The card also facilitates free person-to-person transfers within its network.

Similar to Greenlight, the FamZoo Prepaid Card is a family-friendly debit card designed to teach children and teenagers about money management in a practical, hands-on way. A standout feature of FamZoo is its ability to create multiple cards under one family account, allowing parents to allocate funds and oversee the spending of each child individually. Parents can set up automatic allowances, assign chores, and reward kids for good financial behavior. FamZoo also allows for parent-to-child and sibling-to-sibling money transfers. 

One interesting feature of the FamZoo card is the ability to get cards for your kids without providing actual detailed information about them such as a social security number. You can get a card “on behalf of” your child in your name and the card will populate with both your name and theirs. 

There are no fees for standard card activities like purchases or ATM use within the network, though a monthly subscription fee applies.

The Walmart MoneyCard, issued by Green Dot Bank, offers up to 3% cash back on Walmart.com purchases, 2% at Walmart fuel stations, and 1% in Walmart stores (total annual cash back limit is capped at $75). The card also offers a savings account option with a 2% interest rate on balances up to $1,000 and opportunities to win cash prizes. 

There’s a monthly fee of $5.94, which can be waived with a minimum of $500 loaded onto the card in the previous month. The card provides free cash withdrawals at Walmart stores and ATMs in the MoneyPass network. Meanwhile, the Walmart MoneyCard app provides features such as depositing checks and managing funds. Family accounts are also available for members aged 13 and above. 

Issued through Stride Bank, N.A., the ONE VIP Visa Debit Card is a prepaid card focused on supporting the Black community. The debit card offers, a rewards program that earns up to 1.5% cash back on purchases, particularly at select Black-owned businesses. Cash back can be applied to your account, or you can choose to make a charitable donation to a cause benefiting communities of color.

The card is accompanied by a mobile app for managing funds, viewing transactions, and depositing checks. It charges a monthly fee of $7.95 but avoids hidden fees, minimum balance requirements, and overdraft fees. The service has many of the features that mirror traditional banking including the ability to receive funds via direct deposit from your employer.

The PayPal Prepaid Mastercard is a versatile prepaid debit card that offers easy integration with your PayPal account. It enables users to transfer funds from their PayPal balance directly onto the card. Additionally, the card can be loaded through direct deposit of paychecks, tax refunds, or government benefits, as well as cash additions at retail locations, including more than 130,000 NetSpend Reload Network locations nationwide. 

While the card is associated with some fees, such as monthly charges, ATM withdrawal fees, and reload fees at certain retail outlets, it does offer special offers and Payback Rewards when you shop at qualifying stores. This optional program awards cash back to your account.

Prepaid debit cards often come with various fees, such as:

• Monthly Maintenance Fees: Charges for maintaining the card account.
• Reloading Fees: Costs associated with adding more money onto the card.
• ATM Withdrawal Fees: Charges for withdrawing cash from ATMs.
• Balance Inquiry Fees: Costs for checking the card balance.

Considering whether to get a reloadable debit card for your kids involves weighing several factors. They can be a practical tool for teaching them about financial responsibility. You can set spending limits and track their expenditures, helping them learn budgeting skills and the value of money. 

It also offers convenience by providing a safer alternative to carrying cash for school expenses, outings with friends, or emergencies. Moreover, using a prepaid card can introduce basic banking concepts like checking balances and understanding fees, contributing to their financial education.

However, it’s crucial to be mindful of potential drawbacks. Many prepaid cards come with fees, such as activation fees, monthly maintenance charges, or fees for reloading funds. It’s essential to choose a card with clear fee structures that align with your budget. 

Additionally, unlike credit cards, prepaid cards do not contribute to building a credit history, which may be a consideration for older teens or young adults looking to establish credit.

Before deciding, assess whether your child is ready for the responsibility of managing a card and discuss expectations and consequences for its use. By selecting the right card and using it as a tool for learning, you can empower your child to develop essential money management skills early on.

While prepaid debit cards offer convenience and control over spending, they may not be suitable for everyone’s financial goals. 

For individuals looking to build or improve their credit history, secured credit cards or traditional credit cards used responsibly might be more beneficial. Secured credit cards require a security deposit that serves as the credit limit, enabling users to build credit with responsible use.

Though they can be convenient for some people, prepaid cards do have some notable drawbacks. For one, they are often laden with fees, which can erode the card’s balance over time. Also, unlike credit cards, prepaid cards don’t contribute to building or improving your credit. 

Prepaid cards typically offer limited consumer protections as well; in cases of loss or theft, you might not receive the same level of security against unauthorized transactions as offered by traditional bank cards.

Most prepaid debit cards belong to a certain network, as indicated by the logo (Visa, MasterCard, American Express, or Discover) and can be used anywhere that brand is accepted. However, there are certain types of transactions that aren’t allowed with prepaid debit cards, including credit card or loan payments.