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Prepaid Card Balances, Declined Purchases, Limits, and Inactivity Fees

This guide presents selected U.S. government consumer education from CFPB. References to “we” or “us” in the source material refer to the issuing agency. Source dates and links appear below.

How do I check my prepaid card balance?

There may be several ways to check your prepaid card account balance. Your cardholder agreement may tell you how to check your balance and whether there is a fee to use a particular method to check your balance.

Most cards offer one or more of these ways to check your prepaid card balance

Automated customer service

You can contact customer service to check your balance. You usually won’t be charged a fee if you get your balance through the automated phone system.

Live customer service

You can call customer service to check your balance, but some cards will charge you a fee to talk with a live agent.

Online/Mobile App

Some prepaid cards allow you to check your balance on the internet if you set up an online account. Usually this service is free.

Text message

Some prepaid cards give you the option to receive your account balance through text message free of charge, but you may pay a fee to your cell phone provider for the text messages.

ATM

Some prepaid cards allow you to check your balance at an ATM, but you may pay a fee.

Why was my online purchase with a prepaid card declined?

There are many reasons why a purchase could be declined including insufficient funds.

Prepaid cards can be used like a credit or debit card. And they can be declined for many reasons including:

  • You don’t have enough money left on your card.
  • You haven’t activated or registered your card.
  • The address you gave to make an online or phone purchase is different from the address you have on file with your prepaid card provider.
  • The provider does not have your zip code on file, so it wouldn’t match the zip code given at purchase.
  • The purchase was flagged as suspicious and triggered a fraud alert.
  • You have exceeded the card’s daily or monthly spending limits

Check your cardholder agreement or contact your card provider’s customer service number for more information or assistance.

Are there limits on the amount of purchases, reloads, and cash withdrawals I can make with my prepaid card?

There may be limits on how much money you can have on your prepaid card, how much you can deposit, how much you can spend, and how much you can withdraw in cash at one time.

The limits on purchases, reloads, and cash withdrawals vary, so check your cardholder agreement. Your prepaid card provider is required to make this information available to you on its website or send to you upon request.

Will I receive a monthly online or paper statement for my prepaid card?

It depends. Many prepaid card providers don’t send monthly paper statements, but you can go online to get a list of your recent transactions free of charge.

If receiving paper statements is important to you, check the cardholder agreement, call customer service, or visit the prepaid card provider’s website to see if they offer paper statements and whether you would be charged a fee to get them. If your prepaid card provider does not offer monthly statements by mail (or electronically, if you’ve consented to receive information that way), you can check your balance by telephone and go online to get a list of your recent transactions without a fee.

What is a text alert service for my prepaid card?

Some prepaid cards offer a text alert service to update you about account activity or changes to your account via text message.

Through the service, you may be able to receive notice of low balances, activity on your card, or to check your card balance. The service is often free of charge, but you may be charged by your cell phone provider for the text messages.

Review your cardholder agreement to see if a text alert service is available and if you would be charged a fee to use that service.

Can I use my prepaid card outside of the U.S.?

Check your cardholder agreement to see if you can use your prepaid card outside of the United States and if there are any restrictions on how you can use it.

You might be able to use your prepaid card for purchases or ATM withdrawals outside of the U.S., but some may charge foreign transaction fees. Not all cards can be used outside the United States, so check your cardholder agreement before you travel or use your card as payment in a foreign currency.

The prepaid card provider will require you to register your card by providing certain personal information to the prepaid card provider in order to use your card internationally. This personal information is used to verify your identity.

Will I be charged a fee if I don't use my prepaid card?

Some prepaid cards charge an “inactivity” fee if you don’t use your card for a certain period. If your card has a regular monthly fee, you will be charged that amount whether or not you use the card.

The length of time that triggers inactivity fees can vary from 90 days to 12 months. You may be charged the inactivity fee each month until you use your card again.

If your card charges inactivity fees, check the cardholder agreement to see what you can do to avoid the fee. “Using” your card doesn’t necessarily mean making a purchase – it could also mean making a cash withdrawal, adding money to the card, or checking your card’s balance.

The CFPB’s prepaid rule, which came into effect April 1, 2019, requires providers to give you disclosures about the card’s fees, including whether there is an inactivity fee, before you choose a prepaid account.

How do I avoid a monthly fee on my prepaid card?

Your prepaid card provider is required to tell you whether the monthly fee can be waived. Check to see whether your card waives the fee in some circumstances, like direct deposit for your regular income. You can also shop for a card that doesn’t charge a monthly fee, though some of those cards may charge a transaction fee instead.

Some prepaid cards waive the monthly fee if you make at least a certain number of purchases, load at least a certain amount of money during the month, or use direct deposit to add funds automatically into the prepaid account. Carefully read the cardholder agreement and other materials that come with the card. You may also be able to go to the card provider’s website to find out how the card works.

Other prepaid cards that don’t charge a monthly fee have a “pay as you go” plan where you pay each time you use your card. These transaction fees can add up quickly. Depending on how you use your card, choosing a card that does not charge a monthly fee might cost you more, not less. You can save money if you think about how you will use your card. Before you choose your card, review the fees that card charges and compare it to how you plan to use it.

Sources and publication details

The federal agency source text is U.S. government work in the public domain. Fynoptic selected, adapted, and formatted it for this guide. No agency endorsement is implied. Follow the linked sources for current program details and the rules applicable to your circumstances.

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