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Reloading and Using a Prepaid Card: Cash, Direct Deposit, and Payment Networks

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.

What is a prepaid card reload pack and how do I use it?

A reload pack is a product you can buy to add money to your prepaid card.

Tip

You can check your cardholder agreement to see if there are free or cheaper ways to add money to your card before you purchase a reload pack.

Each reload pack has a cost in addition to the money you load onto it. You may be able to buy a reload pack at the same retailer where you bought your prepaid card. Most brands of reload packs can only be used with certain brands of prepaid cards, so it’s important to make sure that the reload pack you buy works with your prepaid card.

After selecting your reload pack, take it to the cashier. Tell the cashier how much money you would like to put on your reload pack. Each reload pack has a set minimum and maximum reload amount, for example, at least $20 but no more than $500. The cashier will activate the reload pack once you purchase it.

Once the cashier has activated the pack, you can open it and scratch the back to find the pack’s reload number. You can then go online or call your prepaid card’s customer service number and provide the pack’s reload number to load the funds onto your existing prepaid card. The money is usually credited to your prepaid account immediately.

A reload pack usually can only be used once. To add more money to your prepaid card, you must purchase another reload pack or add money another way, such as direct deposit from another source like a paycheck, unemployment, or bank account.

In addition to the purchase price of the reload pack, you may be charged a fee if you don’t load the funds onto your prepaid card after a certain number of days. Check the cardholder agreement of your reload pack to see if you will be charged any additional fees.

Lost reload packs

Treat your reload pack like cash – if you lose it, you will generally not be able to get the money back. Some reload pack providers may have a customer service number where you can report errors or fraudulent transactions. In some instances, they may be able to give you some or all of your money back if you can provide proof of your purchase.

How do I reload my prepaid card using direct deposit?

If you want to use direct deposit to reload your card, make sure this is an available feature on the card you have or plan to buy. Many cards do not charge for adding money through direct deposit, so it might be a cheaper way to add money to your card than other options.

Your prepaid card may allow you to set up direct deposit for future reloads. When you register your card, you may get specific instructions on how to set up direct deposit, if it is available for your card.

A direct deposit can come from a variety of sources, such as your paycheck, government benefits like unemployment or Social Security, a tax refund, or a transfer from a checking account. In general, you will need to know your prepaid account number (which is usually not the same as your prepaid card number) and your prepaid card provider’s routing number. Contact your prepaid card’s customer service number to obtain the account number and routing number for direct deposit.

There may be benefits to using direct deposit, such as waiver of the monthly fee. Check your cardholder agreement to understand your options.

How do I add money to my prepaid card?

You can usually add money to your prepaid card in several ways. You may be able to:

  • Arrange for a paycheck or other regular payment to be directly deposited onto the card
  • Transfer money from a checking account or another prepaid card
  • Buy a “reload pack” to add a certain amount to your card
  • Add funds at certain retail locations or at the financial institution that provides the card

You may be charged a fee for some ways of adding money to your card and not for other ways. When choosing a prepaid card, think carefully about your needs and about how you will reload your card.

When I use a prepaid card, should I choose "debit" or "credit"?

You can choose either option to pay with your prepaid card. Your selection determines how the payment is processed and may also impact the fee you’re charged.

When you pay with a prepaid card at a retail location with a PIN pad, you may have the option to choose whether to run the card as “credit” or “debit.”

If you choose “debit,” you enter the PIN you created when you registered your card, and it is treated as a cash transaction with the funds immediately withdrawn.

If you did not create a PIN, choose “credit.” If you choose “credit,” you only need to sign your name. The funds will be taken from the balance of your prepaid card, but not immediately. The transaction is treated like a credit card purchase and does not get withdrawn until the merchant settles the purchase, which could happen at the end of the day or the next day.

You must have the funds available on your card, for your debit or credit transaction to go through.

Some prepaid cards charge you a fee, or different fees, if you choose debit or credit, so check your cardholder agreement to learn about any applicable fees.

Where can I use my prepaid card?

Most prepaid cards can be used to shop at a variety of retail locations and online.

Most prepaid cards have a network logo (Visa, MasterCard, American Express, or Discover) and can be used anywhere that brand is accepted. Some examples include grocery stores, department stores, gas stations, hotels, and for online shopping.

Prepaid cards can also usually be used for purchases over the phone. Some prepaid cards can also be used at ATMs or for person-to-person transfers, though you may be required to register your card first.

Check the cardholder agreement for your prepaid card to learn about its features and if there are any restrictions. You should usually be able to find a copy of the agreement on your prepaid card provider’s website, and you can request a copy from the provider if it is not there.

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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