Prepaid debit cards for people without a bank account — how they work, what they cost, and how to pick one that fits
A prepaid debit card works like a bank debit card in most situations — you can use it to make purchases in stores and online, pay bills, receive direct deposits, and withdraw cash at ATMs. The difference is that it is not connected to a bank account. This page explains what prepaid cards can and cannot do, what features matter most for people without a bank account, how to compare fees, and what scams to watch for.
With a prepaid card, you load money onto the card, and you can only spend what is there. There is no credit check to get one and no ChexSystems review, which means a bad banking history or no banking history at all is not a barrier. This guide also covers a few specific situations — federal benefit recipients, immigrants, and people trying to use a prepaid card to qualify for loans or advance apps.
If you are trying to get a loan without a bank account right now, start at options for a loan with no bank account. If you want to open a real bank account but have been turned away before, second chance accounts and low-barrier banking options are covered at the second chance bank account explainer page.
- KEY RESOURCE The CFPB maintains a prepaid account comparison tool where you can see and compare fee schedules for prepaid cards side by side. It is a useful starting point for comparing current options: https://www.consumerfinance.gov/consumer-tools/prepaid-cards//
- SCAM WARNING: Companies that use prepaid cards to run scams are all too common. Some also target holders of cards. Be very mindful of this fact and we have more details on common scams in the industry below.
What a prepaid card can and cannot do
Prepaid cards have come a long way. A modern reloadable prepaid card with a Visa or Mastercard logo can do most of what a checking account does: receive direct deposits of paychecks, benefits, or tax refunds; pay bills online; make purchases anywhere that card network is accepted; and allow cash withdrawals at ATMs. Many provide a routing number and account number, which means they function like a bank account for purposes like setting up direct deposit or connecting to payment apps.
What they generally cannot do: build your credit score (spending on a prepaid card is not reported to credit bureaus), provide overdraft protection without significant fees, or offer the same fraud protections as a credit card. If the card is lost or stolen, the protection you get depends on whether you registered the card and how quickly you report it — unregistered cards have very limited protection.
Prepaid cards are not savings tools. Fees can eat into a balance if the card is not used regularly or if you use out-of-network ATMs. The goal is to get the most functionality for the lowest ongoing cost, which means comparing fees carefully before choosing one.
The features that matter most — what to look for
Not all prepaid cards are built the same. These are the things to look at before picking one:
A routing number and account number. If the card provides these, you can set up direct deposit, receive government benefits, and connect to payment apps and lending platforms. This is the feature that turns a prepaid card into something close to a bank account. Not all prepaid cards have this — confirm before buying.
FDIC insurance. Look for cards that explicitly state FDIC insurance through a partner bank. This means your balance is protected up to $250,000 if the company behind the card fails. Uninsured cards carry real risk. The card's terms or packaging should state the FDIC-insured bank name clearly.
A low or waivable monthly fee. Many prepaid cards charge a monthly fee in the range of $5 to $10. Some waive it if you load a minimum amount each month through direct deposit — often $500. A card used primarily for direct deposit can often have its monthly fee waived entirely. Cards with no monthly fee exist but typically have other fees to watch for, such as ATM or reload charges
A reload network you can actually use. If you add cash to the card in person, you need a reload location near you. Most network prepaid cards reload at locations like Walmart, CVS, Dollar General, Walgreens, and 7-Eleven, though fees for cash reloads apply at many of those. Confirm the reload fee before counting on a specific location.
Low or free ATM access. Many prepaid cards include free withdrawals at in-network ATMs — often through networks like MoneyPass or Allpoint with tens of thousands of locations nationwide. Out-of-network ATM fees can run $2.50 or more per withdrawal, which adds up quickly.
Where to get a prepaid card
Prepaid debit cards are available in a few different places, and where you get one affects what it costs and what it can do.
Retail store cards — Walmart, Walgreens, CVS, Dollar General, and similar stores sell prepaid Visa and Mastercard network cards off the shelf. Some carry an activation fee. Walmart's own MoneyCard is one of the more accessible options for people who reload in cash, with the monthly fee waivable through direct deposit. In-store purchase is an option for people who cannot or prefer not to apply online.
Bank-issued prepaid cards are offered by some traditional banks and are typically FDIC-insured directly through that bank. They tend to have stronger consumer protections and clearer fee structures. Some require online applications.
Network prepaid cards — cards issued through Netspend, Green Dot, and similar companies — are widely available at retail locations and online, have large reload networks, and typically provide routing and account numbers for direct deposit. Fees vary by plan. Read the fee schedule before activating.
- NOTE: App-based accounts like Chime are technically not prepaid cards — they are financial technology accounts backed by an FDIC-insured partner bank — but they function similarly for people without traditional bank accounts, with no monthly fee and direct deposit support. They are worth considering alongside prepaid options if you are comfortable with a mobile-only experience.
If you receive federal benefits
The U.S. Treasury's Direct Express Mastercard is the official prepaid card for people who receive Social Security, SSI, SSDI, or VA benefits but do not have a bank account. It has no monthly fee, one free ATM withdrawal per deposit at in-network ATMs, and is free to enroll. To sign up, call 1-800-333-1795 or visit https://godirect.gov/gpw/.
Prepaid cards and loans — what carries over
If you are trying to qualify for a loan or cash advance app and you do not have a traditional bank account, a prepaid card with a routing number may help — but it depends on the specific lender or app.
Some advance apps and online lenders accept prepaid cards that have a routing number, function like a checking account, and support ACH transfers. Others explicitly require a traditional bank account and will not accept a prepaid card regardless of its features. There is no single answer — you need to check with the specific lender before applying.
What does carry over: once a prepaid card has a routing number and you can receive direct deposit, many of the doors that were closed without a bank account start to open. Gig worker advance apps, some community lenders, and certain online platforms become accessible. More on borrowing options once you have a card with routing number features is at loan options with no official bank account.
Scams targeting prepaid card users
Prepaid cards are a specific target for scammers, in part because transfers to prepaid cards are hard to reverse and in part because the people most likely to use them have fewer alternatives.
The most common scam: someone contacts you by phone, text, or social media and tells you that you have won a prize, are owed a government payment, or qualify for a grant — but you need to pay a fee or provide your card number and PIN to receive it. Once they have your card number and PIN, they can drain the balance immediately. No legitimate government agency, prize program, or lender will ever ask for your prepaid card number or PIN to release money to you.
IRS and Social Security impersonators frequently demand payment in prepaid cards. The IRS does not call people to demand payment, and it does not accept prepaid card payments over the phone. Social Security does not either. If someone claims to be from a government agency and asks for a prepaid card number, it is a scam.
Gift card confusion: some scammers ask for the numbers off the back of a gift card and represent this as equivalent to a prepaid card payment. Gift cards and reloadable prepaid debit cards are different products. Gift cards have no consumer protections and cannot be reversed. Never use a gift card to pay a bill, a fee, or a "deposit" requested by anyone who contacted you first.
If you have been targeted by a prepaid card scam, report it to the FTC at https://consumer.ftc.gov/ or call 1-877-382-4357. Report it to your card issuer as well — most have a fraud line printed on the card.
The prepaid card market changes frequently. Products launch, fees change, and programs close — American Express's Bluebird and Serve programs, for example, are closing in mid-2026 after years of operation. Confirm current terms, fees, and availability directly with any card issuer before activating. The CFPB comparison tool at consumerfinance.gov/prepaid is a good place to compare current options.
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