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How to Transfer Money from a Prepaid Card to Bank Account

A prepaid card refers to a payment card that allows you to recharge and buy goods and services. The card also allows you to buy goods and services online and at physical stores. Prepaid cards operate like debit cards, although they do not necessarily link to any bank or credit union account. However, you can link to a bank account at will. Today, I will major in how to transfer money from a prepaid card to a bank account.

As I have just mentioned above, you can link your card with a bank account. That enables you to transfer money between the two platforms, and you can easily transfer money from your card to your bank and vice versa. The ability to transfer money across various platforms allows you to share funds with others in times of need. It also allows the proper flow of currency since people far from each other can send money to one another.

Prepaid card issuers usually allow you to manage your card account online. Therefore, it makes things easy when using the card. You can view your balance online, check your statements online, among other activities. You have to create an online account during the card activation. Most prepaid card issuers allow you to apply for your card online and receive it at a physical location that you provide during card application.

How to get a prepaid card

You can get a prepaid card when you apply for the card from the relevant financial institution. You first begin by looking for prepaid card issuers online. Numerous prepaid card issuers are ready to issue you with a card.

Once you have come across the various companies, you can then study them to see the most appropriate ones. There are various things to check, such as withdrawal fees, overdraft fees, monthly fees, inactivity fees, etc.

Once you have chosen the right card for your case, you can visit the card issuer’s website and start your card application. You will fill in various details on the form you get and submit it for processing. You will then get a notification about your card application status. Upon succeeding in your card application, you will receive and activate it.

Once you have activated the card, you need to recharge it to start using it. Some prepaid cards allow you to recharge at physical locations. You can also transfer money from a debit card to a prepaid card to recharge.

Do I need any credit history to apply for the card?

how to transfer money from prepaid card to bank account

Prepaid debit cards do not need any credit history to get. All you need is the necessary details to apply for the card. Credit history is necessary when you want to apply for an unsecured credit card.

You may wonder what a credit score is. Well, credit scores help to determine the creditworthiness of an individual. If you pay loans well, you get high credit scores and vice versa.

Requirements to apply for a prepaid card

A prepaid card issuer is a financial institution like banks, mobile wallets, and credit unions. Therefore, the federal government requires all financial institutions to obtain the following documents from account applicants.

  • Social Security Number
  • An identification document, e.g., driver’s license, passport, government ID card
  • Email address
  • Physical address
  • Phone number

The Social Security Number allows the government to track your tax payment. The number plus the identification document helps the card issuer to identify you correctly. The email address and the phone number allow you to get the necessary communication from your card issuer.

Your physical address will be of importance when receiving your card. The issuer will send the card to your address for you to activate and start using it.

What are the factors to check when applying for a prepaid card?

You should check various factors when applying for your prepaid card to ensure you get the best. These include the following.

i) Fees

Since financial institutions have to make money, they have to impose some fees on various transactions. You should be keen not to get a card with so many fees that will drain you financially. Various transactions do not require fees. For example, most financial institutions allow you to transfer money from one card to another for free so long as it is of the same institution.

ii) Ease of reloading

You do not want a card that has limitations on how to reload your card. If you get a card with diverse reloading methods, the better.

iii) Personalization

Some prepaid cards allow you to choose your design. You can choose your color and image to be printed on the card. Cards that allow you to personalize them are the best since you can choose what pleases you.

iv) Transaction limits

Prepaid cards, like other financial institutions, have transaction limits. You can have daily transaction limits, maximum recharge amount, and so on. If you get a card with high limits, the better.

What can I do with a prepaid card?

There are various transaction activities that you can do with a prepaid card. They include the following.

a) Send and receive money

Prepaid debit cards allow you to send money to others. You can either send money to accounts of the same card issuer as well as other financial institutions. You can transfer money using the routing number and account number.

b) Withdraw money

You can withdraw money from your prepaid card to your bank account. Again, you can withdraw cash at an ATM point. Some prepaid cards allow you to withdraw money at specific locations.

c) Save money

Some prepaid debit cards allow you to keep money aside. For example, NetSpend has a high-yielding savings account that allows you to save money for your plans.

How to transfer money from prepaid card to bank account

As I have mentioned above, prepaid cards allow you to transfer money to a bank account online. However, it depends on the kind of prepaid card you have. Some issuers do not allow you to transfer money to a bank account.

You only need to have the bank account details, and you are good to go. The following is the process you can use to transfer money from your debit card to a bank account. Have a look.

  • Log into your card account online.
  • Add the bank account details you want to transfer money to.
  • Next, navigate to transfers and choose to transfer to a bank account.
  • Enter the amount to transfer.
  • Enter your PIN or any other convenient verification method.
  • Hit send.

Apart from transferring money directly from your card account to your bank account, you can use third-party platforms such as MoneyGram, PayPal, Venmo, and Western Union, among others. These platforms allow you to get money from your prepaid card to fund your bank transfer. However, you have to add the prepaid card to the concerned third-party app to continue.

Also, you have to create an account with the concerned third-party app to use their services. Generally, these platforms allow you to indirectly transfer money from a debit card to a bank account. Remember that a prepaid card is also a debit card. You can also use a bank account to fund your transactions.

Do you need a bank account to use a prepaid card?

A prepaid card does not necessarily require you to have a bank account. All you need is to have sufficient money in your account. However, you can add a bank account so that you can conveniently top up your card account with ease.

How are prepaid cards different from debit cards?

Although the two types of cards work the same, there are some slight differences. They include the following.

  • Prepaid cards do not need a bank account, while debit cards require bank or credit card accounts.
  • A prepaid card uses balance from its account, while a debit card uses money from the connected bank or credit union account.

Can I use a debit card online?

Just like prepaid cards, you can have an online account for your debit card. All you need is to open an account through the means offered by your bank. Once your card account is ready, you can send money online using a debit card to other cardholders or a bank account.

When using a debit card online, you need to use a secure internet connection to prevent hackers from accessing your account. Public WiFis are very risky as someone may easily phish for your account details.

How do I keep my prepaid card account secure?

Various practices can help you to keep your funds safe in your prepaid card account. They include the following.

  • Keep your login details a secret. You should be keen not to let anyone know your PIN or password for your card account.
  • Use a safe internet connection when using your account online.
  • If you lose your prepaid card, lock it as you look for a solution.
  • Make payments to reputable merchants using your prepaid card.

Bottom line

A prepaid card refers to a payment card that allows you to top up and pay for goods and services. You can also utilize a prepaid card to send money to others or transfer it to a bank account. Unlike ordinary debit cards, prepaid cards do not require a bank account. However, you can link them to bank accounts at will. You should strive to keep your account safe all the time.

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