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Two types of prepaid payment cards can potentially be used to pay bills: prepaid debit cards and network-branded gift cards (like those that carry the Visa or Mastercard logo). Prepaid debit cards come in a few different forms and offer the opportunity for a convenient money storage account that can take the place of complex checking.
Gift cards that carry the Visa or Mastercard logo are typically sold in different denominations and can be used for online shopping or bill payment if sufficient balances are available.
Before diving into bill payments, it can be good to understand the two types of prepaid payment card options a little better. Prepaid debit cards can work like network-branded gift cards and any electronic payment card that is loaded with funds considered deposit assets rather than credit liabilities. Prepaid debit is a popular money storage solution that can take the place of traditional bank checking.
Key Takeaways
- Prepaid debit cards and network-branded gift cards can be used for bill payment.
- Prepaid card acceptance typically depends on the card processor brand.
- Some prepaid card accounts may have special services for making one-time or recurring bill payments through an account.
- Many prepaid debit cards can be bought in retail stores like Walmart, Target, or Walgreens.
- All prepaid cards come with their own terms and special provisions as decided by the card issuer.
Can You Pay Bills With a Prepaid Debit Card?
Yes, bill payments can be made with a prepaid debit card if there are sufficient funds loaded onto the card. An important thing to take note of when seeking to make any bill payment with a prepaid card of any kind is the card’s processor.
All prepaid debit cards partner with one of the four major payment card processors: Visa, MasterCard, Discover, or American Express. Generally, the card processor will dictate whether or not an electronic payment card is accepted by a company for a bill payment. Store gift cards typically can't be used for bill payment unless with that specific retailer.
Beyond that, most prepaid cards will work in the same manner that any regular payment card will. If the card’s processor is accepted, payments may be made on a website, on the telephone with representatives, or by filling out a form included with a paper bill in the mail and returning it through the postal service. Transactional fees are usually not necessary although some companies may charge for payments over the phone or express payments.
Accessing and Using a Prepaid Debit Card
Many prepaid debit cards can be bought in retail stores like Walmart, Target, or Walgreens. The process for buying them is similar to a gift card. The deposit amount may be specified or flexible based on the amount a buyer is seeking. Other prepaid debit cards may be easily obtained online. You might also be offered a prepaid debit card if a business handles preparing your income tax return. The company might offer to place your IRS refund on a prepaid debit card.
All types of prepaid debit cards will come with an online account that can be easily accessed for account viewing and maintenance. When you first obtain the card, you will need to register, activate it, and peruse your online account options if you so choose.
The activity on prepaid cards is not reported to the credit reporting agencies and does not help build a credit history.
Online, you will have the chance to view account balances, holds, transaction history, and registration information. Depending on the card's options, you may also be able to make card-to-card transfers as well as set up some one-time or automated recurring payments.
One of the benefits of a prepaid credit card is that it offers some consumer protection in the event the card is lost or stolen since it isn’t tied to a personal checking account. Cardholders can simply call customer service if there is a problem. Oftentimes, prepaid debit cardholders can also add money to the card via a website or retail store chain which can be simpler than making deposits at a bank.
Special Card Features
All prepaid cards come with their own terms and special provisions as decided by the card issuer. Some prepaid card providers may offer special opportunities to make bill payments from a cardholder’s account through the issuer’s website. Cards can also come with some special features that make it more convenient to transfer funds.
The Western Union NetSpend Prepaid MasterCard, for example, maintains a site on which cardholders can easily make bill payments. Some additional fees may be required.
Many prepaid cards offered by MasterCard and Visa allow for card-to-card transfers for cards of the same network brand. For example, a MyVanilla Prepaid Visa Card allows cardholders to transfer funds to other MyVanilla Prepaid Visa Cards, and for no fee. Most prepaid cards do not allow transfers between cards of different brands, however, or between prepaid cards and regular credit cards, even if they are from the same network.
Cards such as the Western Union NetSpend Prepaid MasterCard allow users to send and receive Western Union money transfers using their cards. There is generally no fee for receiving Western Union money transfers. There are, however, varying fees for sending Western Union money transfers.
What Can You Not Do With a Prepaid Card?
With a prepaid card, you cannot borrow money. (It does not function like a credit card.) You only have access to the funds loaded on the card, which can be reloaded, but you cannot utilize more money than you have. As such, prepaid cards do not build credit.
What Payments Accept Prepaid Cards?
As prepaid cards are issued by the major credit providers, such as Visa and Mastercard, prepaid cards can be used anywhere that debit cards are accepted, which is in the majority of situations.
Can I Pay Bills With a Prepaid Visa?
Yes, the Visa Prepaid card can be used to pay bills, withdraw cash, or make any purchases where a debit card can be used.
The Bottom Line
Prepaid cards can help with bill payments and remove the hassle of having to write a check or automate payments with your bank. With the development of various payment apps and other technology used today to pay bills, having a convenient money storage account on a card can be a good option as well.