Can you use prepaid credit cards online

A reload card works like a gift card: It contains a code number that becomes linked to the amount of money you paid the cashier. Using reload cards with a PIN was a popular and convenient way to load a prepaid card online or over the phone — until PINs became a target for scammers.

Instead, you will find fees, and they often will be hidden. Unlike credit cards, which by law must disclose their terms and conditions upfront, no regulation forces pre-purchase disclosure of fees on prepaid cards.

According to the Consumer Financial Protection Bureau , some of the common fees associated with prepaid cards include monthly fees, transaction fees, inactivity fees and even fees for paying bills — the list goes on and on.

Prepaid cards can charge fees for everything from setup to reloading. The good news is that by comparison shopping, consumers can limit fees, as long as you keep a minimum balance or sign up for direct deposit. Some cards charge for special benefits such as overseas use or automated bill pay, and most tap you for out-of-network ATM withdrawals. The prepaid industry has expanded in recent years, and consumers have many options to choose from. These include prepaid cards with benefits aimed at specific lifestyles.

Even for people with a regular bank account, a prepaid card can be an effective budgeting tool. Even those not issued by a bank offer the zero liability protections of the payment network noted on the card, such as Mastercard or Visa. If you report the loss or theft of a registered card to the issuer, most will restore your original balance and issue a new card. In other words, a prepaid card works like a debit card, minus many of the risks and, of course, the bank account.

Bluebird by American Express offers impressive benefits for a prepaid card and is a good option for anyone looking to build their credit or simply stick to a budget. Notable card features include access to a network of 30, ATMs and low balance alerts from your Bluebird account. With Greenlight, consumers can create subaccounts for their children and set specific spending and store limits to teach them how to manage money.

The Walmart MoneyCard is a good choice for customers who frequently shop at Walmart stores. The editorial content on this page is based solely on the objective assessment of our writers and is not driven by advertising dollars. It has not been provided or commissioned by the credit card issuers. However, we may receive compensation when you click on links to products from our partners.

Melody Warnick is a former CreditCards. Essential reads, delivered straight to your inbox. By providing my email address, I agree to CreditCards.

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Our opinions are our own. Here is a list of our partners and here's how we make money. If you don't have a bank account or you need a new way to budget, prepaid debit cards might be the next plastic for your wallet.

Here's how they work. A prepaid debit card is an alternative banking product that only lets you spend the money you load onto the card. Like debit cards, prepaid cards work at any merchant that accepts its payment network, such as Visa or Mastercard. You can buy a prepaid debit card from a retailer, bank, credit card company or other financial services provider.

When you purchase one, your card funds are usually part of an account held by a bank or credit union. Prepaid card companies usually offer several ways to load funds onto a card. Some cards also let you link to a checking account to make online transfers. Check out our favorite options. Because many prepaid debit cards don't require credit checks, they're easy to get.

If you're in one of the roughly 7 million U. If you try spending more than you have, most prepaid cards simply decline the transaction. They can be useful for people on a fixed income or teenagers who get allowances. But prepaid debit cards have major limitations compared with banking accounts and credit cards. Although they typically have online services, many prepaid cards lack standard banking services, such as a way to withdraw or reload cash for free.

The money you load on a card probably won't earn interest, either. If you only want to load cash for safekeeping, and don't plan to make many withdrawals, it may be better to find a high-rate savings account for your funds. Prepaid debit cards — pay before: You load money onto the card via cash, checks, direct deposit or a transfer from another account before paying for transactions.

Debit cards — pay now: You use money directly from a checking account when paying for purchases or withdrawing money from an ATM. Credit cards — pay later: You borrow money from a bank when you use the card and pay the money back later. Prepaid cards vary widely, but they tend to have these features in common:.