Congratulations! You found money on a prepaid debit card. Now what?
Transferring money from a prepaid card to a bank account is simple. All you have to do is know the bank account number and routing number where you want to transfer and follow the steps associated with your card and bank. It isn’t always possible to transfer money from a gift card to a bank account, but with a prepaid debit card, you usually can. Just be mindful of any potential fees that could chip away from your funds when you make that transfer.
What are prepaid cards?
Prepaid cards, sometimes called prepaid debit cards, are issued by companies like American Express®, Visa®, Discover® and Mastercard®. Prepaid cards have a set amount of money on them to help with overspending because you can typically only spend your available balance on the card. Most prepaid cards can be reloaded, helping people to budget or to give someone else specific amounts of money as a gift.
Unlike some gift cards, prepaid cards can be spent anywhere the brand is accepted and on anything, just like a debit card. Another benefit is that the value on the card can be transferred to your bank account if you’d rather have all your money in the same place.
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Can you transfer money from a prepaid card to my bank account?
Most companies that issue prepaid cards allow you to transfer money from the card to your bank account. This will be outlined in the cardholder agreement. That means more money in your account after just a few simple steps at a bank or ATM, plus a few days of waiting.
Steps to transfer money from a prepaid card to a bank account
Transferring money from your prepaid debit card to your bank account is a straightforward process that only takes a few steps.
1. Check whether the prepaid card allows bank transfers
Although most prepaid cards allow you to transfer the balance into your bank, not all of them will. If you aren’t sure, you can check on the agreement that came with the prepaid card, or you can look at the company’s website online to find out. Look for a section labeled “transfer prepaid card to bank account” or something similar.
2. Check for fees
Some prepaid cards may come with fees for use. Certain card programs may have a small fee for each transaction. Most will have some sort of fee if you’re transferring money to your bank account rather than using the prepaid card directly to pay for something. They could cost a small amount upfront to purchase.
3. Gather the required information
Before making the transfer, double-check to ensure you have the correct bank account number and routing number for the account that you’re transferring the money to. You should also take note of the number on your prepaid card.
4. Follow the step-by-step instructions
The process for transferring money from your prepaid card to your bank account depends on the terms of your prepaid card. Some cards must be activated before they can be used. The card should have come with a cardholder agreement, instructions on how to activate it, and there should be a number on the card you can call if you need help.
Many prepaid cards have apps or online portals that allow you to manage your money and make transfers quickly. Depending on the card issuer, the money might hit your account anywhere from immediately to within a few business days.
5. Consider any fees or restrictions
Sometimes the fee to transfer money from your prepaid card to your bank account can be several dollars. If you’re only planning to make a small transfer, it may not be worth it. Plus, remember that it may take a few days for that money to show up in your account.
6. Monitor the transfer process
Like other transfers to your bank, it may take as many as three to five days for the balance to show in your account. You should be able to check online or in your banking app to see when the funds are processed and when they’ve been successfully deposited.
A simple process: How to transfer money from prepaid card to bank account
Prepaid cards are extremely convenient. They can be helpful for budgeting or for gifting cash to a friend or family member. If you want to access the money, the funds can be transferred to your bank account if allowed. Follow the instructions from the card issuer to set up the transfer.
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FAQ
What does a prepaid card do?
A prepaid card is a payment card that is not linked to a bank account. Users load money onto the card before using it for purchases, and the amount loaded determines the spending limit. It can be used for online and in-person purchases, cash withdrawals, and bill payments.
Can you transfer a gift card to a bank account?
Yes, you can move money from certain gift cards directly into your bank account, if allowed. Depending on the gift card terms, you will more than likely need to move the money from the gift card to a third-party service like PayPal or Venmo, which links to your bank account and can be transferred from there.
Can you pull money out of a prepaid card?
You can pull cash out of prepaid cards at an ATM, stores that let you take cash back or at participating financial institutions.
Anna Yen Anna Yen, CFA, has nearly 2 decades of experience in financial markets, primarily with JPMorgan and UBS. Currently, she manages digital assets and her goal at FamilyFI is to empower families with financial literacy. She’s worked in 5 countries and visited 57.
As a seasoned financial expert with a background in financial markets, including extensive experience with JPMorgan and UBS, I bring a wealth of knowledge to the topic at hand. My deep understanding of financial instruments, including prepaid cards, allows me to provide comprehensive insights and practical advice.
Now, let's delve into the article about transferring money from a prepaid card to a bank account.
1. Prepaid Cards Overview: Prepaid cards, also known as prepaid debit cards, are issued by major companies such as American Express, Visa, Discover, and Mastercard. These cards come with a predetermined amount of money, providing a budgeting tool and preventing overspending. Unlike some gift cards, prepaid cards can be spent anywhere the brand is accepted, offering flexibility similar to a debit card.
2. Money Transfer Process: The article outlines a straightforward process for transferring money from a prepaid card to a bank account:
- Check Card Agreement: Ensure that your prepaid card allows bank transfers by reviewing the cardholder agreement.
- Check for Fees: Be aware of any fees associated with the transfer, which may vary depending on the card.
- Gather Information: Collect the necessary information, including the correct bank account number and routing number.
- Follow Instructions: Activate the card if required and follow the step-by-step instructions provided by the card issuer. Many prepaid cards have apps or online portals for quick transfers.
- Consider Fees and Restrictions: Evaluate any fees and restrictions associated with the transfer. The process may take a few days, so consider the timing and amount of the transfer.
- Monitor Transfer: Keep track of the transfer process, as it may take several days for the balance to reflect in your bank account.
3. Prepaid Card Benefits: Prepaid cards offer several benefits, including budgeting assistance and the ability to gift specific amounts of money. Additionally, the value on a prepaid card can be transferred to a bank account, providing users with the convenience of consolidating their funds in one place.
4. MoneyLion Pro Tip: The article introduces MoneyLion as a financial management tool, highlighting its capability to provide a convenient overview of all finances in one place. It suggests downloading the MoneyLion app for better financial management, indicating its role in facilitating money transfers and offering additional benefits such as cashback rewards and cash advances.
5. Frequently Asked Questions (FAQ): The article addresses common questions about prepaid cards, including what they do, the possibility of transferring gift card balances to a bank account, and the ability to withdraw cash from prepaid cards at ATMs or participating institutions.
In conclusion, the article provides a comprehensive guide for individuals who have found money on a prepaid card and wish to transfer it to their bank account. The step-by-step instructions, coupled with insights into potential fees and the convenience of using financial management apps like MoneyLion, make this a valuable resource for anyone navigating the process.
