Consumer Reports finds best prepaid cards

Money experts analyze terms of 20 cards


Prepaid reloadable cards are growing rapidly in popularity as a way to manage money.

Anyone can acquire the cards in stores, banks or online, and load them up. They’re an easy way to pay for purchases, and they can take the place of a traditional bank account.

Catherine French, her mother and son all use prepaid cards. For her son James, it takes the place of a bank account.

“I’ve used it almost anywhere, from restaurants to convenience stores, gas stations, anywhere,” he said.

Catherine says the prepaid card makes it easy to give James only what he needs for school and to avoid the perils of a credit card.

“I know I’m not going to let him loose with my credit card with his name on it,” Catherine said. 

Consumer Reports evaluated the terms of 20 prepaid cards and says they are better than they used to be.

“One of the big improvements is safety," said Margot Gilman, Chief Money Editor for Consumer Reports. "All of the prepaid card issuers we checked now voluntarily offer some of the same protections as bank-issued credit and debit cards.”

However, the card must be registered to get the protections, and since they are only voluntary, they could be revoked. 

Consumer Reports also evaluated the cards for value and convenience.

“For those who use the cards in place of a bank account, it’s important to be able to pay bills, add money, and withdraw cash without incurring a lot of fees,” said Gilman.

The lowest-rated card, the NetSpend Prepaid Visa Pay-As-You-Go, has relatively high fees, and there’s always a fee to use an ATM.

In response, NetSpend says it offers “a feature rich product that may not be comparable to prepaid card programs Consumer Reports reviewed."

The cards Consumer Reports rated the highest work well for those who use them instead of a bank account, as well as for those who use them for shopping. All have low fees, voluntary safety protections and are widely accepted. The highest-rated cards are:

  • Bluebird from American Express and Walmart
  • Walmart, ChaseLiquid issued by Chase Bank
  • Green Dot Prepaid Visa

The government’s Consumer Financial Protection Board is expected to issue new regulations for prepaid cards this spring. They will guarantee protections for lost and stolen cards, and make it easier to understand and compare fees.

For more information on choosing a prepaid card, see Consumer Reports' Prepaid Card Buying Guide.