You got money, and just as it sounds, the money is found in your prepaid card, and, you urgently need to get the money in your bank account, then, knowing how to transfer money from prepaid card to bank account can be useful in such situations.
Prepaid cards provide a more practical way to send and receive money, and since they are not linked to a bank account, reloading one shouldn't be too difficult since there are lots of ways to do so.
Some prepaid cards are designed for international use, making them the perfect option for international shoppers who order catalogs from online stores located in many countries.
Some prepaid card issuers allow you to save money on your card in addition to using it to make purchases.
One of the leading providers of prepaid cards, Netspend, for instance, lets you to save aside extra cash for the future.
By the way, most banks and some prepaid card providers work together to issue prepaid cards. The money is therefore extremely secure.
According to the rules of the federal government, you can obtain a prepaid card online using a variety of methods.
To get started, you need a computer, tablet, or smartphone with a secure internet connection.
Anyone who has the necessary papers can apply for a card because opening a prepaid account does not require credit history.
Generally, minors can obtain the cards to use when they apply under their parents or guardians.
This article focuses on showing you how to transfer money from a prepaid card to a bank account.
Table of Contents
What is a Prepaid Card and How Does it Works?
A prepaid card is a type of payment card that may be loaded repeatedly and used to buy goods and services.
The card can be used to make purchases both online and in physical stores.
With the exception of the fact that they are not necessarily connected to a bank or credit union account, prepaid cards work similarly to debit cards.
You can manage your account online with the majority of prepaid card issuers.
It thus simplifies using the card. Among other things, you can check your account balance and statements online.
You must set up an online account before you can activate your card.
The majority of prepaid card providers let you apply online and pick up your card at a physical address you provide throughout the application process.
What are the Requirements to Open a Prepaid Card Account?
You must adhere to American regulations for opening an account because a prepaid card provider is a financial institution.
Therefore, in order to open an account, you must present the following.
- Social Security Number
- A US phone number
- Email address
- Current physical address
- An identification document
You must include your full names, city, state, and ZIP code in the application procedure.
You must upload the supporting papers for verification in addition to providing your identification and Social Security numbers.
How to Get a Prepaid Card
To get a prepaid card, you must apply online or in person at a branch.
The majority of issuing companies, however, manage their operations online, therefore you must go to their website to begin the application procedure.
When the issuer's website loads, go to the "create an account" section and fill out all the necessary information step by step until you press the "submit" button.
After processing your request, the card issuer contacts you through phone or email with their response.
After receiving it at your actual address, you activate it in accordance with the instructions. Some prepaid card providers demand that you activate your card in person and then top it up before using it.
How to Add Money to a Prepaid Card?
A prepaid card can be loaded with funds in a number of ways. These are a few of them.
1. Deposit a Check
You can use banking apps provided by prepaid card companies to deposit checks into your online accounts.
Simply sign the check's back, sign into your account, snap photos of the check's front and back, and upload them for processing.
The need to walk to a bank to deposit a check is eliminated via online check deposit.
A check is processed over a few days, and as soon as it clears, money appears in your account.
2. Deposit from a Bank
It's interesting to note that bank accounts can be used to reload prepaid cards.
Therefore, you can load money into your card account without having to walk to a reload location. All you have to do is add the bank's information to your card account, and you're done.
The routing number and account number of the bank account must be added to your account since you must transfer money using these numbers.
3. Direct Deposits
You can receive direct deposits from the government and any other pertinent sources using prepaid cards.
You can receive money via direct deposit two days earlier than you would with a typical bank.
For instance, the majority of recipients of unemployment benefits during this period of Covid'19 receive their money in their prepaid cards by direct deposit.
4. Adding Money at a Location
You can recharge your card at particular locations owing to prepaid card companies.
One of the well-known locations where you can add more money to your card is Walmart.
To complete the transaction, all you need to do is go to the store with your card and cash and hand them to the cashier.
5. Receive Money from Other Users
You can transfer money online between prepaid cards through the company that issue them.
Most of the time, in order to send money to someone, you need their phone number or email address.
The money will be accessible for use as soon as it is sent if someone sends you money to your account.
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Can You Transfer Money from Prepaid Card to Bank Account?
Yes, you can. You must check whether your prepaid card card issuer allows you to control your card from an online platform before you may transfer money from a prepaid card to a bank account.
If so, it will be considerably simpler to transfer funds from your prepaid card to a bank account
To initiate the transfer, you might require the bank account and routing details, though.
If the company that issues your prepaid card does not have an online platform, you can transfer funds from your prepaid card to your bank account using third-party services like PayPal and MoneyGram.
How to Transfer Money from Prepaid Card to Bank Account
Check to see if your card issuer has an online platform where you can manage your prepaid card account before taking any further action.
If so, a website or mobile application can be used to access the platform.
The process for transferring money from one company to another is the same for most prepaid cards.
For instance, you would enter the routing and account numbers to link your bank account to the Netspend® Visa® Prepaid Card.
The transfer can then be started using the website after that.
Many prepaid card issuers offer apps that you can download and use.
To ensure maximum flexibility and convenience, inquire with the card issuer to determine if one is offered.
If it does, you can use it to transfer money from the card to a preferred bank account as well as other card-related tasks while you're on the move.
Below are the steps to follow when transferring money from prepaid card to bank account.
- Log into your card account online.
- Provide 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.
- Finally, tap send to complete the transfer process.
Depending on the provider of the prepaid card, the money will either be in your account almost instantly or within a few business days.
The initial transfer you make, however, will probably take longer because the company needs to verify the linked bank account.
There are numerous different costs associated with prepaid cards, and many of them charge you to transfer a balance.
Depending on the issuer and how you start the process, the cost will change.
For instance, Netspend doesn't charge a fee for mobile transfers into your bank account, but it does when you use a customer service agent to make the transfer over the phone ($4.95).
You will be charged $3.00 when using ACH to transfer money from your Brink's Prepaid Mastercard® to a bank account at another financial institution.
To be sure the card is the best fit for you and your needs, review the fee structure prior to applying.
If you got the card as a gift and don't want to use the money for retail purchases, check the fees a company might impose.
If there isn't much money left on the card, it is better to cash it out than to receive nothing.
In the United States, 51% of survey participants left money on their gift cards, costing consumers $15.3 billion, according to a Bankrate.com study from 2021.
You can also transfer funds directly from your prepaid card account to your bank account via third-party services like MoneyGram, Western Union, Wise, Remitly, PayPal, and Venmo among others.
These platforms let you use funds from your prepaid card to fund your bank transfer.
You must first add the prepaid card to the necessary third-party app in order to continue.
You must first register with the third-party app in order to use its services.
In general, these systems let you to send money from a debit card to a bank account through an intermediary
A prepaid card can also be used as a debit card, so keep that in mind.
That said, bank account may also be used to fund your transactions.
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Is It Safe to Use Prepaid Cards?
When opening an account to deposit money, there is always a concern. You might be unsure of how secure opening an account for a prepaid card is.
A prepaid card account is secure to use since you may protect your money with Personal Identification Numbers (PINs) on the cards.
Additionally, they have excellent online security, which encrypts your data to stop third parties from accessing any of it.
For further security, you must also set up a password for your online card accounts and enable Touch ID and Face Unlock.
In order to issue debit cards, the majority of prepaid card providers collaborate with specific banks.
Your money is safe since banks have FIDC insurance even if the business fails. The FIDC insures up to $250,000 per single account.
What are Some of the Prepaid Cards I Can Use?
If you are unsure of the prepaid card provider to go in for, here's are some of the best prepaid cards available out there.
Prepaid cards from Netspend are some of the best cards you may use for regular transactions.
2. Bluebird by American Express
The card has absolutely no monthly fees.
It provides excellent features for managing money and allows free ATM withdrawals.
3. Movo Virtual Prepaid Visa Card
You can instantly transfer money between cards with the Movo Virtual Prepaid Visa Card without having to pay a monthly fee.
The card costs $2.50 to $5.99 each month, and you may set up additional subaccounts for children.
5. Walmart MoneyCard
The card works best for saving money and offering you rewards.
You can add money to a prepaid card to use for transactions.
You can make purchases of goods and services and learn how to make bank account to prepaid card transfers.
One way that prepaid cards differ from debit cards is that they are not always linked to bank accounts.
Transferring money from a prepaid card to bank account is a straightforward process as it can be done directly from your prepaid card issuer's online platform.
In the case where your prepaid card does not feature an online platform, you can go in for money transfer agents such as MoneyGram, Western Union, Wise, Remitly etc.