We are living in the information age where a shift process occurs from industrial-based to an information-based economy utilizing digital devices. The exchange of paper money is getting obsolete (like VHS players!). Instead, new digital methods of exchanging money are emerging and they are gaining popularity. This is because of portability and added security the digital money offers.
Unlike cash, if you lose your credit or debit card, you can stop the service and apply for a new card. Besides, carrying a lot of cash can be troublesome and sometimes potentially dangerous. Nowadays, you don’t even need a card; there are Smartphone apps for this purpose.
The most conventional methods for such transactions would be a credit card or standard debit card. But there are some stern rules and regulations for getting those cards and maintaining them. The prepaid debit cards are much more flexible and you can get one even without a bank account. There are no interest charges and requirements for credit history for using such cards. It can also help you to maintain your budget while you are shopping.
The concept of the prepaid debit card is a comparatively new one but it is gaining market pretty fast. In the following sections, we are going to introduce prepaid cards and issues related to transfer money from checking account to prepaid card online.
What Is Checking Account & Prepaid Card
A checking account refers to a type of bank account where the account holder can deposit funds and withdraw anytime. These types of accounts are quite convenient for paying bills and other payments online and if you intend to make huge withdrawals or unlimited deposits. You can access the account through ATM or electronic debit cards anytime.
The reloadable prepaid card is a somewhat cross breed of a credit card, a gift card and a checking account debit card. But unlike credit cards, you have to load funds in the account of the prepaid card before you use it. You can use it multiple times and you don’t have to throw it away like a gift card.
These prepaid cards are debit cards. But you don’t have to have a bank account to have one like a traditional debit card.
How Prepaid Cards Work
First of all, you have to choose a service and apply for the card online or in other ways. Some service providers allow you to buy a prepaid debit card and register for the service afterward. After that, there are issues like:
Adding Funds to Your Card/Load Money
There are several methods you can utilize to reload your prepaid debit card. You can do it by direct deposit, bank transfer, PayPal fund transfer, loading cash, or cheques.
Shopping or Withdrawing Cash With Your Card
The prepaid debit cards can be used for purchase in a place where a traditional credit or debit card is accepted. You can also withdraw cash from particular ATMs using your debit cards. Moneypass, Allpoint, and other branded networks provide these services to cardholders.
More Payment Services
Apart from regular shopping, these prepaid cards allow you to pay your bills. Also, you can send money to another person’s account, make payments online, and shop online using your debit card. You have to wait in a long queue of customers or worry about the banking days or hours, you can do it just by clicking some buttons.
Transfer Money From Checking Account To Prepaid Card Online
You can transfer funds from the bank account to the prepaid card by using an online bank transfer very easily without any cost. Within two or three days, the online transfer process will be completed and the money will be available to your debit card. The procedures may differ from bank to bank. Some general concepts are elaborated below.
1. Requirement of Account Number And Routing Number
The process starts with acquiring the bank account number and routing number associated with your prepaid card. All of these prepaid cards are issued by some banks. The routing number would identify that particular bank. The bank account number of your prepaid card is different from the number mentioned on the card’s body.
To get the account number and the routing number from the prepaid card’s online account. Once you log in, check for the money transfer option and you would see these details mentioned somewhere. You can also call the customer care center through the helpline and ask for the information.
2. Add A Prepaid Card To Bank Account
The next step is to link your personal bank account to the prepaid card. If your account is a checking account, you can transfer the money easily to a prepaid card from online. You have to log in to your personal account and add the prepaid card account as an external account and authorize the transfer. You have to mention the routing number, too, which you have gathered in the first step.
3. Test Transaction
To verify the fact that the external account has been set up properly, the bank where you have your personal account may ask for two small test deposits. When these deposits are available in your card’s account, you have to log in to your personal account and mention that amount. It will ensure that the system is functioning properly
4. Final Transfer of Money
You are all set for transfer money online when your prepaid card account is successfully set up as an external account in your personal checking account. After accessing your personal account, go to the fund transfer page and mention the amount you want to transfer along with the card’s account number in appropriate fields.
These transactions are not processed immediately (apart from some exceptions). It may take one or two business days to complete it.
Alternatives to Transfer Funds to a Prepaid Debit Card
The fund can also be transferred to a prepaid card using other online methods. You can consider those options if you are looking for alternatives to traditional banking systems.
Paypal is a famous online payment system operating worldwide and it serves as an electronic version of a check or pay order. If you have a PayPal account, you can upload the debit card number, expiration date, and security code in the account and you are set to move funds from PayPal account to your prepaid card. This transaction will take 10 to 30 minutes and it will cost you 1% with a limit of $10. Hence, it’s less expensive than bank wire transfer which is about $30.
There are many person to person payment apps like Venmo, available online. These apps offer lots of flexibility and conveniences and if you are using one already, you can recharge your prepaid card using it. You have to add the details of your prepaid card to your P2P app account and the fund will be transferred when you have money in your P2P account.
Transfer Money With ACH Transfer to a prepaid card
Automated Clearing House (ACH) has made the fund transfer super easy and simple these days. If you happen to have a prepaid card with ACH transfer option and you need to transfer funds anywhere and anytime, you can do it through online processes. You don’t have to worry about bank hours or traffic for sending or receiving money. There are many discount offers and rewards for using these services.
In order to transfer money using ACH, you have to visit your bank’s website and follow the instructions for ACH or online fund transfer. Every bank has a dedicated and unique system for these purposes. Most of the time, it requires some basic information like your checking or saving account number, prepaid card number, the amount of money you want to transfer, etc. And normally, the transaction will be completed within two or three business days. You can instantly transfer money if you pay an extra charge.
List of Popular Prepaid Cards with ACH Transfer
1. American Express Prepaid Card
This American Express prepaid card is very popular in the USA. But this card can be used worldwide. You can use it whether you are online or offline and you will not be disappointed with the service. There is no age limit for using the American Express Prepaid Card. Along with online services, phone service is also integrated for a smooth and trouble-free transaction.
The minimum and maximum limits of fund transfer a day are respectively $25 and $2,500. Within five business days, you can recharge the prepaid card from your checking account. If you use an ATM, a charge of $2.5 is applicable for each transaction.
This RushCard is pretty versatile given that it facilitates direct deposit facilities, exclusive visa discounts, mobile app and you can manage your account more easily and securely. You can make purchases, pay your bills, and withdraw cash from some designated ATMs using RushCard.
To issue RushCard for minors (13 years old and above), a parental consent form has to be submitted by an adult person. Two plans are available for this card, one will charge a monthly fee for the unlimited transaction and another will charge $1 per transaction and no monthly fee.
RushCard allows online ACH transactions and direct deposit for free of charge for $10,000 per transaction. The process is rather simple.
3. Walmart Money Card
Walmart Money Card offers tons of cashback bonus and discount per purchase. You are eligible for 3% cashback at Walmart.com, 2% cashback at Walmart fuel stations, and 1% cashback at Walmart stores, up to $75 each year. Even, you can 2% interest per year from your free savings account with an amount upto $1,000.
If you are an adult (18 yr or above), you can open an account without any purchase or money transfer. Once you have an account, you can open additional MoneyCard accounts (which are eligible for family members of 13 yr or above) and issue upto 4 cards on behalf of a single account.
Also, you can make Wednesday your payday instead of Friday using free ASAP Direct Deposit. And, if you use the MoneyCard app (available at Walmart stores nationwide), you can transfer funds into your MoneyCard account for free. A balance of $1,000 will waive a monthly charge of $5.94.
4. Western Union NetSpend Mastercard
Western Union is one of the most trusted brands in worldwide financial services and NetSpend is a renowned provider of general-purpose rechargeable prepaid debit cards. Together, they have brought this Mastercard. It’s quite simple to get a card, you just have to give your name and mailing address (unless you live in the State of Vermont) and you will receive the card within 7-10 business days. After that, you have to go to the website to activate your card and verify your identity. In addition to transferring money directly from a qualified bank, you can directly deposit the fund or visit any one of the total 130,000 reloads locations in the Netspend® Reload Network.
For a direct deposit, there is no fee, and cash reload at reloading network location will cost you $3.95 per load. The fund transfer from a bank account or a third party requires charge which varies depending on the sender. You can receive money via Western Union Money Transfer on your card without any fee.
5. Card. com
CARD.com Visa Prepaid Card, which is issued by Central Bank of Kansas City, has a very fashionable and exciting appearance. The charges are also fair and no hidden fee is involved.
You can transfer funds by paying cash at the western union or direct deposit from your employer or federal benefit provider. Also, bank transfer, virtual wallet transfer, and sharing money from card to card is possible. Many interesting offers are available with this prepaid card. With direct deposit, you will get paid earlier 2 days and your monthly charge will be waived for a $1,000 deposit.
6. Green Dot Prepaid Debit card
Getting a prepaid card from Green Dot can’t be any easier, you just have to buy the Starter Card from a retailer and register online. Once you have registered, the card will be automatically upgraded to the Unlimited Cash Back Bank Account Visa® Debit Card. The card has cash back and interests on savings offers. Also, you can withdraw cash from designated ATMs and reload the card using the featured App for free of cost.
There are fees like monthly fees, balance inquiry fees, and several others. But there are no overdraft fees and if you deposit $1,000 and above monthly fee will be exempted.
7. Banks to Offer Prepaid Card Online
The most prominent banks which offer great prepaid cards online are as follows:
- BB&T Bank.
- PNC Bank.
- Chase Bank.
- TD Bank.
You should consult these banks directly for accurate information about procuring a prepaid debit card and the rules and regulation involved.
Frequently Ask Questions
Can you transfer money from the bank account to the prepaid card?
There are several provisions for transferring money from the bank account to the prepaid card. You can do it online or write a cheque.
Can I use my prepaid card to send money to another prepaid card?
Some prepaid cards like Western Union NetSpend MasterCard accept the fund transfer from their card to another prepaid card. You have to look for this service on the website of the card you want to purchase or talk to the customer care.
See more : How To Send Money With A Prepaid Card
Can you transfer money from a prepaid card to a checking account online ?
Yes, there are certain processes to do that. You have to link your prepaid card to the bank account in question. You may have to set up an external account for a third party bank.
Can you send money to a prepaid card through PayPal?
Yes, PayPal provides such services. You have to upload some information regarding your card and the amount of funds on your PayPal account.
How long does it take to transfer money from bank to prepaid card?
Normally, the highest time it may take is five business days to complete the transfer process. In some cases, it is done within 2 or 3 business days.
Can you transfer money from a bank account to a prepaid card online instantly?
You can transfer funds from your bank account to the prepaid card almost instantly by wire transfer. But there are charges involved.
A prepaid debit card is a great option for someone who is underage and unable to open a bank account or have a bad credit history or no history at all. You can arrange a safe way to handle money for an underage member of your family. There are many cashback offers, discounts, and saving interests associated with the card services.
Although prepaid debit cards provide lots of conveniences and flexibility in money handlings, there are concerns. These cards don’t have strong protection like a traditional credit or debit card. They don’t help to build a credit history. Also, there are hidden fees involved sometimes which may cost you more than you want. So, take your time to study all the agreement forms before applying for a prepaid debit card.