Can you use prepaid visa cards online

A prepaid debit card is much like a gift card: It allows you to spend whatever amount of money is stored on the card. Once the balance is used up, you can reload the card online or at an ATM, a participating store, or other physical location. Prepaid debit cards are issued by banks and branded by the major credit card companies, including Visa, MasterCard, Discover, and American Express.

Key Takeaways

• A prepaid debit card can be a useful alternative to cash.
• Prepaid debit cards are an option for people who don't have a credit card or access to a regular debit card connected to a bank account.
• There are many fees associated with prepaid debit cards, so it's important to shop around for the best deal.

Understanding Prepaid Debit Cards

A prepaid debit card is as good as cash—and sometimes better:

• It is a safe way to carry money around—unlike, say, a wad of paper money. Prepaid cards also come with certain consumer protections, while cash does not.
• A prepaid debit card can be used for online purchases.
• It can make a more attractive gift than cash.

Anyone who wants to stick to a strict budget, or who has had trouble managing credit cards, could also consider using a prepaid debit card.

You can use a prepaid debit card for any transaction that you might otherwise use a credit card or regular debit card for. In many instances, the recipient of your payment may even be unaware that the card is prepaid.

Some employers pay their workers with prepaid debit cards called payroll cards (which can be useful if the person doesn't have a bank account or direct deposit). Many government benefits are also available via prepaid debit cards, including Social Security.

Prepaid Debit Cards vs. Regular Debit Cards

With a regular debit card, the amount of money you can spend is tied to how much you have in the checking account it is linked to. So you need to have a bank account to use a regular debit card, while you don't with a prepaid debit card. With a regular debit card, the amount of money you have available to you will also fluctuate from day to day, as money moves in and out of your checking account. With a prepaid debit card, you have a fixed amount of money to spend, which declines as you spend it and rises only if you reload the card.

The Downsides of Prepaid Debit Cards

Prepaid debit cards can come with an assortment of fees that will eat into your cash balance. These may include monthly fees, transaction fees, ATM fees, reloading fees, foreign transaction fees, and more. You may even be charged a fee for checking your balance in the card.

Employees have a legal right to decline being paid through a payroll card because the fees will reduce their take-home pay.

Shopping for a Prepaid Debit Card

If you're shopping for a prepaid debt card, pay particular attention to its fees. Also consider convenience. For example, if the card is free to use at an ATM (as many of the best cards are), how large an ATM network will you have access to, and is there one close to where you live or work?

Important

If your goal is to repair your credit rating, consider a secured credit card instead of a prepaid debit card.

An Alternative to a Prepaid Debit Card

If the reason you want a prepaid debit card is that you have a bad credit history or no credit history and are unable to get a conventional credit card, you might consider a secured credit card instead. Secured cards are easier to qualify for because they require you to put down a refundable security deposit that serves as collateral for the lender.

The advantage of a secured credit card is that your monthly payments can be reported to the three major credit bureaus and help build your credit history. Debit cards, either prepaid or the regular kind, don't report transactions to the credit bureaus and will do nothing to improve your credit.

There are two types of prepaid payment cards that can potentially be used to pay bills: prepaid debit cards and network-branded gift cards (like those that carry the Visa or Mastercard logo). Prepaid debit cards come in a few different forms and offer the opportunity for a convenient money storage account that can take the place of complex checking. Gift cards that carry the Visa or Mastercard logo are typically sold in different denominations and can be used for online shopping or bill payment if sufficient balances are available.

Before diving into bill payments, it can be good to understand the two types of prepaid payment card options a little better. Prepaid debit cards can work like network-branded gift cards and any electronic payment card that is loaded with funds considered deposit assets rather than credit liabilities. As the market for prepaid debit expands, more and more, consumers are gaining access to a simplified electronic money storage solutions that can take the place of traditional bank checking.

Key Takeaways

• Prepaid debit cards and network-branded gift cards can be used for bill payment
• Prepaid card acceptance typically depends on the card processor brand.
• Some prepaid card accounts may have special services for making one-time or recurring bill payments through an account.

Can You Pay Bills With a Prepaid Debit Card?

Yes, bill payments can be made with a prepaid debit card if there are sufficient funds loaded to the card. An important thing to take note of when seeking to make any bill payment with a prepaid card of any kind is the card’s processor. All prepaid debit cards partner with one of the four major payment card processors: Visa, MasterCard, Discover, or American Express. Generally, the card processor will dictate whether or not an electronic payment card is accepted by a company for a bill payment. Store gift cards typically can't be used for bill payment unless with that specific retailer.

Beyond that, most prepaid cards will work in the same manner that any regular payment card will. If the card’s processor is accepted, payments may be made on a website, on the telephone with representatives, or by filling out a form included with a paper bill in the mail and returning it through the postal service. Transactional fees are usually not necessary although some companies may charge for payments over the phone or express payments.

Accessing and Using a Prepaid Debit Card

Many prepaid debit cards can be bought in a retail store like Walmart, Target, or Walgreens. The process for buying them is similar to a gift card. The deposit amount may be specified or flexible based on the amount a buyer is seeking. Other prepaid debit cards may be easily obtained online.

All types of prepaid debit cards will come with an online account that can be easily accessed for account viewing and maintenance. When you first obtain the card, you will need to register, activate it, and peruse your online account options if you so choose. Online, you will have the chance to view account balances, holds, transaction history, and registration information. Depending on the card's options, you may also be able to make card-to-card transfers as well as set up some one-time or automated recurring payments.

One of the benefits of a prepaid credit card is that it offers some consumer protection in the event the card is lost or stolen since it isn’t tied to a personal checking account. Cardholders can simply call customer service if there is a problem. Oftentimes, prepaid debit cardholders can also add money to the card via a website or retail store chain which can be simpler than making deposits at a bank.

Special Card Features

All prepaid cards come with their own terms and special provisions as decided on by the card issuer. Some prepaid card providers may offer special opportunities to make bill payments from a cardholder’s account through the issuer’s website. Cards can also come with some special features that make it more convenient to transfer funds.

The Western Union NetSpend Prepaid MasterCard, for example, maintains a site on which cardholders can easily make bill payments. Some additional fees may be required.

Many prepaid cards offered by MasterCard and Visa allow for card-to-card transfers for cards of the same network brand. For example, a MyVanilla Prepaid Visa Card allows cardholders to transfer funds to other MyVanilla Prepaid Visa Cards, and for no fee. Most prepaid cards do not allow transfers between cards of different brands, however, or between prepaid cards and regular credit cards, even if they are from the same network.

Cards such as the Western Union NetSpend Prepaid MasterCard allow users to send and receive Western Union money transfers using their cards. There is generally no fee for receiving Western Union money transfers. There are, however, varying fees for sending Western Union money transfers.

Can you use a Visa gift card for online purchases?

Why can't I use my Visa prepaid card online?

Can you use a prepaid Visa card on websites?

How can I use my prepaid card online?