Prepaid debit cards have become increasingly popular in recent years as individuals explore for alternatives to traditional banking. They allow more spending flexibility and can help with budgeting and financial management. In this article, we will explore the best prepaid debit cards available in 2023 that offer no monthly fees and are suitable for teenagers.
Prepaid Debit Cards
Prepaid debit cards are a type of debit card that is funded by loading money onto the card rather than linking it to a checking account. They can be used to make purchases online and in person wherever the card is accepted, and they offer the convenience of paying with plastic without the risk of overspending.
The Best Prepaid Debit Cards
The best prepaid debit cards will depend on your lifestyle and needs. However, there are some factors you can consider when choosing a prepaid debit card. They include:
- Flexibility: Some cards offer multiple options for monthly or pay-as-you-go usage fees, such as the NetSpend® Visa® Prepaid Card
- Budgeting: Some cards offer online banking tools to help you manage your money, such as the Bluebird® American Express® Prepaid Debit Account, which allows you to categorize transactions, set spending limits, and track up to four cards.
- Cash back rewards: A few prepaid cards offer cash back rewards for purchases made online or in stores, such as the Serve® American Express® Prepaid Debit Account or the Walmart MoneyCard®.
- Savings: The Mango Prepaid Mastercard® allows you to earn 6% interest when you meet certain requirements.
- Direct deposit: The PayPal Prepaid Mastercard® is a good option if you arrange for direct deposit of your paychecks and/or government benefits, as it can shave two days off the time it takes to receive your money.
Best Prepaid Debit Cards for Teenager
When it comes to getting prepaid debit cards for a teenager, there are several options parents can consider. Most banks and building societies offer debit cards to children aged 11-17. These cards can be used in shops and online, and they allow parents to monitor their child’s spending habits. Student current accounts are also an option for teenagers. Since they come with a debit card that can be used for online and in-store purchases, as well as cash withdrawals.
Prepaid cards from challenger banks are another alternative to credit cards for teenagers, especially those who are younger than 18. Prepaid cards can be topped up and used like a debit card, but once the balance reaches zero, any transactions the teenager attempted will be declined. This ensures that the teenager cannot end up in debt.
Parents should carefully consider the fees associated with prepaid debit cards before choosing one for their teenager. Also, there are alternatives to prepaid cards for a teenager. They include Bank accounts with debit cards and student current accounts.
Best Prepaid Debit Cards for a Teenager
- Gohenry: This prepaid debit card is available to children aged 6 to 18 and has good controls, notifications, and safeguards in place. Kids can earn extra money by doing chores set by their parents through the app. However, it is the most expensive of the prepaid cards.
- NatWest rooster money: This card costs £19.99 a year for the card and app. It allows parents to limit stores visited, ban blacklisted stores and has a dynamic CVV for added fraud protection. It also offers educational resources for a teenager to learn about money and allows parents to set chores for their children through the app.
- Greenlight debit card for kids: This is one of the prepaid debit cards that provide access to tools that teach a teenager about savings and allows them to start investing with as little as $1, with no trading fees.
Best Prepaid Debit Cards for International Travel
Five best prepaid debit cards with no foreign transaction fee for your international travel.
#1. NetSpend® Visa® Prepaid Card
There is no credit check, activation fee, or minimum balance requirement with the NetSpend® Visa® Prepaid Card.
Features
- With Direct Deposit, you can get paid faster than a traditional check.
- This is not a credit card; thus, there are no late fees or interest costs.
#2. Brinks Prepaid Mastercard
The Brinks Prepaid Mastercard is a bank-like prepaid card that offers free budgeting features and direct deposit up to two days earlier.
Features
- There are no late fees or interest charges.
- With the Brinks Prepaid Mastercard, you can earn rewards for your spending.
#3. PayPal Prepaid Mastercard®
The Bancorp Bank, a Member of FDIC, issues the PayPal Prepaid Mastercard® card. Also, the card can be used anywhere that accepts Debit Mastercard.
Features
- By using your card, you can earn cash back and personalized offers
- Create a direct deposit from your PayPal account and load the card that way.
Best Prepaid Debit Cards With No Monthly Fees
Some of the best prepaid debit cards with no fees or low fees include the following:
- The Bluebird® American Express® Prepaid Debit Account offers no foreign transaction fees, making it a good option for those who travel or make international purchases
- The PayPal Prepaid Mastercard® does not charge fees for PIN transactions, making it convenient for those who prefer PIN-based authentication.
- The NetSpend® Visa® Prepaid Card has no signature transaction fees, allowing you to use the card with more merchants that only accept signature-based authentication.
- The Serve® American Express® Prepaid Debit Account offers no ATM fees, allowing you to access your funds without worrying about additional charges.
What is the Best Prepaid Card to Buy Online?
The best prepaid card to buy online are:
#1. Wise
Pros
- Free account with no monthly fees
- Allows international spending and holds over 50 different currencies
- Send money to 80 countries
Cons:
- £5 fee for the physical card
- Only two free ATM withdrawals per month (up to £200)
- No cash deposits
#2. Walmart MoneyCard
Walmart MoneyCards are reloadable prepaid debit cards that can be used for online purchases everywhere MasterCard or Visa debit cards are accepted.
Pros:
- Cash-back rewards on Walmart purchases
- Offers free services
- It has budgeting tools
Cons
- Limited rewards
- Limited acceptance
- Usage fees for ATM withdrawals
Which Prepaid Debit Card Has the Highest Withdrawal Limit?
When it comes to prepaid debit cards, the ACE EliteTM Visa® Prepaid Debit Card offers the highest withdrawal limit available. With this card, you have the option to withdraw up to $940 per day from an automated teller machine (ATM) and up to $5,000 per day from a bank counter.
Other prepaid debit cards with high withdrawal limits include:
- PayPal Prepaid Mastercard®: Allows you to spend up to $5,000 daily, with an ATM withdrawal limit of $940 daily.
- NetSpend® Visa® Prepaid Card: Has a daily spending limit of $4,999 and a daily ATM withdrawal limit of $940.
- Bluebird® American Express® Prepaid Debit Account: This card allows you to deposit up to $15,000 into your high-limit account.
- Serve® American Express® Prepaid Debit Account: Allows you to load up to $15,000 onto your card.
How Much Do Prepaid Cards Cost?
Prepaid cards can have various fees associated with them, and the costs can differ significantly between cards. Some fees you might encounter include the following:
- Application or purchase fees: Some cards charge a one-time fee when you first open your account, while others may waive this fee if you load a certain amount onto the card
- Monthly fees: Most cards charge a monthly fee ranging from £1 to £12.50.
- Renewal fees: Prepaid cards usually expire after three years, and there may be a renewal fee to obtain a new card. This fee can depend on how much money you load onto the card.
- Transaction/withdrawal fees: Some cards charge a fee for each transaction or withdrawal. ATM withdrawal fees can be a set amount (e.g., £2) or a percentage of the transaction.
- Topping up fees: Using a bank transfer is the cheapest way to add money to your prepaid card. However, using PayPoint or adding money at a Post Office may come with fees.
- Inactivity fees: Some cards charge an inactivity fee if you haven’t used your card for a certain period of time.
- Cancellation fees and fees for transferring remaining funds of the card: Some cards charge fees for closing your account or transferring any remaining money back to your bank.
Is Cash App a Prepaid Card?
Cash App is not a prepaid card but offers a prepaid debit card called the Cash Card. Sutton Bank issues the Cash Card which can be used for purchases and cash withdrawals. However, Cash App is a financial platform that partners with banks to provide banking services, such as issuing debit cards and setting up direct deposits.
Cash App supports most prepaid cards for sending payments, but you cannot transfer money from your Cash App balance to a prepaid card. To add funds to your Cash App balance, you must use a bank account or a debit or credit card backed by Visa, American Express, MasterCard, or Discover.
Are Prepaid Cards Traceable?
Prepaid cards can be traceable depending on the card type and the information the user provides during the activation process. For example, reloadable prepaid cards typically require the user to provide personal information to activate the card, making it easier to trace back to the user. On the other hand, non-reloadable prepaid cards are less likely to be traced as they don’t require personal information for activation.
Prepaid cards tied to credit card networks, such as Visa prepaid cards, can be traced. However, prepaid cards tied to individual merchants depend on the systems and processes the merchant has in place. Gift cards issued by banks are attached to bank accounts, making them more easily traceable by federal agencies.
What is Prepaid Card in USA?
Prepaid cards are a sort of payment card that can be loaded with a predetermined amount of money in the USA. These cards, which may be used anywhere Visa or Mastercard debit cards are accepted, are also prepaid or stored-value cards.
In the USA, Visa, Mastercard, and American Express cards are widely accepted and can be used for various types of transactions. Some popular options include:
- U.S. Bank Altitude® Go Visa Signature® Card: This card is best for dining rewards and has no foreign transaction fees
- U.S. Bank Altitude® Connect Visa Signature® Card: This card is best for gas rewards and offers benefits for road warriors and jet setters.
- U.S. Bank Cash+® Visa Signature® Card: This card is best for flexible bonus categories, allowing you to choose your own bonus categories.
- U.S. Bank Shopper Cash Rewards™ Visa Signature® Card: This card is best for Amazon, Target, and Walmart purchases.
Which Type of Debit Card is the Best in USA?
The best debit card in the USA depends on your specific needs and preferences. Here are some factors to consider when choosing a debit card:
- Acceptance: Visa, Mastercard, and American Express cards are widely accepted in the USA.
- No foreign transaction fees: If you plan to use your debit card internationally, consider cards with no foreign transaction fees, such as the NetSpend® Visa® Prepaid Card.
- Cashback rewards: Some debit cards offer cashback rewards, such as the Serve® American Express® Prepaid Debit Account and the Bluebird® American Express® Prepaid Debit Account.
- Savings: If you want to earn interest on your unused card balance, consider The Mango Prepaid Mastercard®.
- Direct deposit: For those who receive paychecks or government benefits through direct deposit, the PayPal Prepaid Mastercard® is a good option
- Security features: Look for debit cards with robust security features to protect your account from fraud and misuse.
- ATM accessibility: Consider the proximity and availability of ATMs when choosing a debit card.
- Overseas use: Make sure your chosen debit card is formatted for use overseas and check the fees and charges for international transactions.
- Rewards: Some debit cards offer rewards like cashback and discounts, such as the Discover Cashback Debit card and the Axos CashBack Checking account debit card.
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