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Free prepaid cards are similar to regular cards. However, one can use them without any credit ratings or an account from any financial institution. Prepaid debit cards are available for free when one signs up online.

However, prepaid cards charge for some of the services they provide, such as money transfers, including those made through a PayPal account, account inactivity, or having a low balance, replacement, or custom cards. It is advisable to spend more time reviewing the card’s charges before signing the cardholder agreement.

How a prepaid debit card works

The Debit card links to the owner’s savings account. The company deducts from the account each time the holder uses the card. There is a difference between a financial institution’s debit card and a prepaid debit card in the type of funding.

The owner’s bank account funds the bank debit card while you fund the prepaid debit card with the money you deposit into the card’s account.

There are a few features that the two cards share. One feature is the lack of an overdraft fee. They also don’t affect the credit score or history and are accepted by the same merchants. Moreover, the cardholder does not need a credit score.

How to add money to your prepaid card online 

A prepaid debit card is different from other cards, such as a gift card, because it is a reloadable card. There is usually more than one way to increase the funds in the prepaid card, and they include reloading packs from the designated locations. One can buy a reload pack and then initiate a debit card transfer.

A cardholder can also start an online transfer, allowing one to move money from their accounts, such as PayPal, to your prepaid card. They can also use mobile check deposits where they use the mobile app to transmit a check to reload your account. Finally, the cardholder can also use MoneyGram or Western Union to fill a prepaid card at an agent location.

The amount that each replenishes will cost is detailed in the prepaid card’s fee schedule. There are a few drawbacks to prepaid cards, the most significant being that you cannot use them to build a credit score. Another disadvantage would be that they generally do not offer rewards for their usage.