If you don't want to carry cash but aren't ready for a credit card, you may enjoy the benefits of a reloadable Visa® card. These cards look and feel like credit cards but don't add to your debt. You also don't need a linked bank account to use them.
When you have money to spend, you simply add it to your card account, which can often be used in stores or online like a traditional debit or credit card. Since it's reloadable, you can add funds again and again, helping you manage your money flexibly.
Reloadable cards come in a few varieties, including reloadable Visa® prepaid cards and reloadable store gift cards (like Starbucks or Walmart).
So, how do these different reloadable cards work? And which is the best for day-to-day use? We break down the details to help you choose the right card for you.
What is a reloadable Visa® card (prepaid debit card)?
Reloadable Visa® prepaid debit cards can be used for all kinds of activities, including everyday purchases like gas, dining, or shopping, as well as for online bill payments and receiving direct deposits. You don't need a separate checking account to fund them. Just load funds directly to the card anytime you want to use it through the card's app or in-store services. Some retailers have reload options at their customer service area, and card offerings vary by store.
In some cases, you can also have your paycheck deposited directly to the card. First, contact the debit card company to get the routing and account numbers for your card. Then, work with your workplace's payroll department to set up direct deposit using those numbers. Employees commonly do this to get access to their paychecks faster than getting it through the mail.
To get a reloadable Visa® card, you can visit the card's website or purchase one through a partner retailer, like a big box store. You will need to provide some information about yourself since the card is a debit card and acts like a banking product. Providing these details and setting up your card can ensure your card is ready to use for secure purchases once it arrives.
Reloadable Visa® debit cards, like the Netspend® Prepaid Card 1, can be used anywhere Visa® debit cards are accepted. Card usage is subject to card activation and identity verification1.
Netspend Visa® Prepaid Card features include:
- No credit check is required1; can be available regardless of credit history or credit score
- No bank account needed. Ouro Global, Inc. is a financial technology company. Banking services are provided by our bank partners.
- Can be used to budget and manage money since you can only spend what you load
- Security features to help protect your card and account
- Convenient to use anywhere Visa® is accepted
- Access to funds once loaded2
A Netspend Visa® Prepaid Card even lets you set up your paycheck and government benefits payments to be deposited directly to the card. Direct deposit may provide faster access to your funds (by a full business day (or more))3 compared to traditional check deposits.
What is a Visa® gift card?
Visa® gift cards are also issued by Visa® and can be used anywhere Visa® is accepted. These gift cards are made to be easily purchased online or at a store, and you can buy them in pre-set amounts of $25, $50, or even $500.
When you buy the card, you don't have to know who you will give it to in advance, making it nice to have on hand for when you need to send a gift. Note that Visa® gift cards typically include activation fees at the time of purchase, which are usually disclosed at the point of sale. Most people love getting cash, and these gift cards can be the next best thing.
Visa® gift cards are different than prepaid debit cards as they are generally not reloadable. They also don't connect to a bank account, and you won't usually find the benefits you get with a prepaid debit card.
For example, you can't have your paycheck or tax refund put onto a Visa® gift card. Once a Visa® gift card is purchased, loaded, and registered, the funds can be accessed and used until the original amount is depleted. No other funds can be added after that.
Also, since Visa® gift cards aren't debit cards, you can't always depend on them for protection against fraud or loss, especially if you don't register the card in your name and address. If you lose the card before registering it, you may be out of luck getting a replacement. (Registering a card takes just minutes. Visit the website on the back of the card to sign up for an account and provide your name, mailing address, and phone number.)
What is a reloadable gift card?
Since Visa® gift cards aren't reloadable, most people throw them away when their balance reaches zero. If you're looking for more than a one-and-done card, the reloadable prepaid debit card may be your best option.
That is, unless you want to shop at the same specific store each time.
Store-specific reloadable gift cards, like those for Starbucks or Target, are easy to purchase and use. You don't have to connect them to a bank account or even add a name to them in some cases, especially if you only want to use them one time.
However, to take advantage of the reloadable features, you may need to register them to a person with an address and other identifiable information. You can do this similarly to how you would register a standard prepaid debit card through the website listed on the back of the card. You may also do this through the retailer's app as part of the account information feature.
For example, any Starbucks gift card can be used one time. You can also use it multiple times by connecting it to a Starbucks loyalty account and using the app to reload it. You may even transfer the balances of smaller gift cards to one main gift card to use again and again in person or through the app.
Reloadable gift cards can only be used for the store brand they're issued by. However, with some cards connected to loyalty programs, you may be able to earn perks or get some additional features in certain cases. Each retailer's program will vary and comes with its own benefits, including savings on certain products or even free gifts on your birthday!
Key differences between the card types
Let's break down the main differences between the three cards: Visa® prepaid debit card, Visa® gift card, and reloadable store gift card. Each offers something different for fees, usability, expiration, and even if you need an ID to get one!
Visa® prepaid debit card:
- Widely available online, banks, retailers
- Usable anywhere Visa® is accepted
- Cash reload, direct deposit, and transfer
- May have activation, monthly, reload, and ATM fees; terms vary by provider
- Card may expire; funds are often transferrable
- ID usually required for registration/activation
- ATM access
- Direct deposit
- Can be replaced if registered
Best for: Money management and spending control, everyday spending, travel
Visa® gift card:
- Widely available online, banks, retailers
- Usable anywhere Visa® is accepted
- No reload, one-time-use only
- Activation fee, possible inactivity fee; no reloads
- Card may expire; funds may be lost if not used
- ID usually not required
- No ATM access
- No direct deposit
- Limited replacement options
Best for: Gifting, one-time purchases, online shopping
Reloadable retail gift card:
- Available at specific retailers and online
- Usable only at issuing retailer
- Some are reloadable
- Usually no fees after purchase
- Typically do not expire
- ID usually not required
- No ATM access
- No direct deposit
- Limited replacement (varies by retailer)
Best for: Gifting, store-specific purchases, promotions
Prepaid card vs gift card: Which should you choose?
Each of these cards may look the same. After all, you can swipe them to make purchases and (in some cases) even add them to a digital wallet to make dinner out with friends much easier. However, each card has a very unique set of benefits that will appeal to different consumers and different situations.
For example, Visa® prepaid debit cards are versatile, reloadable, and suitable for ongoing use as a payment method every day. You can continually add to them, even linking your employer, so your next paycheck hits your debit card much sooner than it would land in your mailbox.
Visa® gift cards are easy to buy and don't require you to register them in some cases, though they typically include activation fees at purchase. You can buy them, send them to a friend, and let them enjoy using them like cash at places they shop. These cards make a great one-time gift that doesn't need maintenance or reloading. Just toss them when they're used up.
Reloadable store gift cards can be used at just one retailer, usually the retailer that sells them. They make a good option for someone who shops at the same place again and again and needs a secure and simple way to pay at checkout. Some of these cards even come with perks, provided you link them to a store-branded digital wallet or app. Each card type will have its own fees for activation, registration, and ongoing activities, so be sure you read the terms and conditions carefully. You may decide you want to use more than one type of card to fit your needs, and that's OK, too.
