How to Transfer Money From a Bank Account to a Prepaid Card

Prepaid cards are like debit and credit cards except they are preloaded with a set amount of money. You may use them for purchases just like you would a debit or credit card but only until the balance is used up. After that, you need to reload the card, which you may easily do online, at an ATM, or at a participating store. 

Here’s a closer look at prepaid cards, including how they work, their pros and cons, and how to quickly transfer money from a bank account to a prepaid card online.

What Are Prepaid Cards?

A prepaid card, also referred to as a prepaid debit card, is a type of payment card you may use to make purchases, pay bills, or get cash from an ATM. Unlike a traditional debit card, however, prepaid cards are not linked to a checking account. You need to load or “prepay” money onto the card. 

Once a card is loaded, you’re only able to spend the amount on the card. You can’t run up debt or interest charges. However, prepaid cards often come with fees, such as activation fees, reload fees, ATM fees, and/or monthly maintenance fees. 

Prepaid debit cards are issued by banks and branded by the major credit card companies, including Visa, Mastercard, Discover, and American Express.

Recommended: Guide to Checking Accounts

How Do Prepaid Cards Work?

Prepaid cards function as an alternative to cash. You may be able to buy a prepaid credit card with money already loaded on the card, or you may need to put money onto the card before you’re able to start using it. Once it’s loaded, you may use the card to pay for things like you would with a normal credit card or debit card, both in person and online. Any money you spend is deducted from your card balance, not your bank account.

To reload your prepaid card, you may transfer money into the card’s account via an online bank transfer, at an ATM, or in person using cash or a check at a bank or participating store. Prepaid cards actually come with their own routing and account numbers, just like bank accounts.

Because prepaid debit cards only allow you to spend within your means, people often use them when they want to stick to a budget or be accountable for what they’re spending. Another advantage of a prepaid card is that you don’t need to have a bank account to use one. This makes them helpful for people who don’t have access to traditional banking.

How to Transfer Money to a Prepaid Card: 4 Steps

Once you have a prepaid card, transferring money onto that card is typically a quick and straightforward process. Here’s a step-by-step guide.

Step 1. Get the Card’s Routing and Account Numbers

In order to transfer money onto a prepaid card, you’re likely to need the bank account number and routing number associated with the card. The account number is different from the number on the front of the prepaid card. To find your card’s information, log into your online prepaid card account or call the customer service number. 

Step 2. Add Your Prepaid Card to Your Bank Account

Any time you want to transfer money from your bank account to another account, you need to add it as an external account. You typically do this by logging into your bank account online and clicking “transfer money.” This should bring you to a page where you’re able to add an external account. This is where you input the routing and account numbers for your prepaid card.

Step 3. Look for Test Deposits

Typically, banks perform an account verification process to make sure you provide the correct routing and account number for the added account. This involves sending a small amount of money (often less than a dollar) to an added account as a test to ensure the money ends up in the right place. You may be required to check your prepaid card account for these “test” deposits and verify that they arrived before you may make a transfer. 

Step 4. Transfer Money

Once your prepaid card is set up with your bank account, you may start transferring money to it. To do this, you simply go back to the transfer page on your account, select your prepaid card account, enter the amount you’d like to send, and request the money transfer. Transfers may take up to one business day, so keep in mind that money may not be available on your prepaid card immediately.

Pros and Cons of Prepaid Cards

Prepaid cards come with numerous benefits as well as a few drawbacks. Here’s a look at how they stack up.

Pros 

• Offer a safer alternative to carrying cash

• Keep you from running up debt 

• Allow you to keep track of your spending

• Don’t require a bank account

• Limit potential losses if the card is stolen, since your bank account cannot be accessed

Cons

• Can’t build your credit with responsible use of the card

• Limit spending to the amount loaded on the card

• Don’t allow instant transfers from your bank account to the card 

• Often charge fees for withdrawing cash, reloading your card, and other services

Where Can You Get a Prepaid Card?

You may buy prepaid cards online, at certain banks and credit unions, and at retail locations, such as grocery stores, drug stores, and big-box retailers.

Transferring Money From Savings to a Prepaid Card

You’re usually able to transfer money from a savings account to a prepaid card in the same way you transfer money from your checking account to a prepaid card. 

Transferring Money Online

To transfer money from your savings account to a prepaid card, you may need to first log into your account and add the prepaid card as an external account. The bank may then do a verification process, where they transfer a tiny test amount of money to the prepaid card. Once you verify that the transfer went through, you may be able to transfer funds from your savings account to the prepaid card whenever you need or want to. 

How Much Time Does It Take for the Money to Transfer?

Transfers from any type of bank account to a prepaid card typically take up to one business day. If you want to transfer money instantly, you generally need to reload the card at a retail location or bank using cash or purchase a reload pack, which allows you to add a predetermined amount of money to your card.

Other Ways to Transfer Money to a Prepaid Card

Transferring money from a bank account to a prepaid card is one way to load money onto a prepaid card. Here are some other options:

• Direct deposit: If your employer offers direct deposit, you may be able to arrange to have all or part of your paycheck go directly to a prepaid card. To do this, you typically need to provide your employer with the card’s routing and account numbers.

• Wire transfer: A wire transfer may be a fast way to transfer money to a prepaid card. There are typically daily cut-off times, but if you initiate the transfer in time, the money could be on your prepaid card within 24 hours. However, your bank may charge a wire transfer fee.

• Peer-to-peer (P2P) payment: Some payment apps allow you to connect your prepaid debit card to the app so that when people send you money, you may transfer it to your debit card. The app may charge a small fee for the service.

The Takeaway

Prepaid cards may be useful if you’re unable to qualify for either a credit card or a traditional bank account. They could also be helpful to anyone who is looking to stick to a spending budget since it is impossible to spend more than you have preloaded on the card. However, prepaid cards won't help you build your credit, and you may want to consider potential fees. 

Once you purchase a prepaid card, you may connect it to your checking account like any other external account and make online transfers whenever you need to reload the card. You may also typically connect a prepaid card to a savings account, whether it’s a traditional savings account or a high-yield savings account at an online bank.

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