How Do Prepaid Cards Work?

A prepaid card acts much the way a gift card would in that they allow you to spend money wherever accepted up to the amount stored on the card.

A prepaid card is a type of payment card that can be loaded with money in advance and then used to purchase goods or services without incurring debt from the issuer.

What is a Prepaid Card?

- ATM access: Some prepaid cards only allow in-network ATM withdrawals for free, meaning at the issuing bank or financial institution’s branch network.

How Do Prepaid Cards Work?

- Reload options: A prepaid card generally allows you to add money to your balance in multiple ways. 

- Card limits: Many cards will either restrict how much you can withdraw from an ATM, spend or reload per day.

- Consumer protections: One major advantage to a prepaid card over cash is the liability and fraud protection you have from federal law. 

- You don’t want to carry cash around - Prepaid debit cards can be used to make online purchases

What are the Advantages of a Prepaid Card?

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