One of the most convenient ways to pay for products and services, whether in-store or online is by making use of a prepaid card. Rather than moving around with Cash, you just need to load money on your prepaid debit card thereby making it more secured.
If you are a government worker, then you can also get your paycheck and government benefits on your prepaid card.
Also if you are the cryptocurrency type, you can make use of Bitcoin IRA, just like other available IRAs so as to be able to receive your retirement benefits. In order to have a better idea on what I am talking about, I recommend you to check out the Bitcoin IRA review.
Since the number of individuals making use of prepaid cards has fast grown, some often ask if it is possible to transfer money from a prepaid card to bank account.
Well it is quite possible for you to do that but the first thing you will have to do is to check if your card even allows you to transfer money to your bank.
Want to know how to transfer money from prepaid card to bank account easily? then stay glued to this article as I will show you how to do so with a few clicks.
Table of Contents
What is a Prepaid Card?
In a technical sense, prepaid cards are a kind of debit card. They are issued by a financial institution or credit card provider, such as Visa, MasterCard, or Discover, and are "loaded" or deposited with a particular sum of money.
They can then be used to make purchases or pay bills offline or online. They can also be used to withdraw money from ATMs.
Prepaid credit cards function normally in the same locations as regular credit cards and have the same number and expiration date printed on the front or back. The credit limit of the card—the maximum amount that may be charged—is determined by the amount of money that has been "loaded" or deposited onto it.
Unless new money is loaded onto the card after the amount has been used up, it is worthless. In actuality, as long as the cardholder maintains loading money into the card, a prepaid debit card can be used repeatedly. But there can be a monthly charge.
Although the terms are often used interchangeably, these prepaid cards are not the same as prepaid credit cards.
Types of Prepaid Cards
There are 2 types of prepaid cards which is prepaid debit card and a prepaid gift card and below I will give you some details on each of the cards.
Prepaid Debit Card
Well Above is a sample of how a prepaid debit card looks like and it can be referred to as a card that can be used anywhere that credit or debit cards are also accepted.
Incase you have been making use of your prepaid card at different places without any hassle then you have a regular prepaid card.
Prepaid Gift Card
Here comes another type of Prepaid card but this type of card limits you to purchasing products and services from participating merchants like home depot.
Can You Transfer Money from a Prepaid Card To Bank Account?
Yes. You are able to transfer money from a prepaid card to a bank account in several methods but the method that you will use depends on the type of prepaid card that you have.
How to Transfer Money from Prepaid Card to Bank Account
In this article, I will show you 3 methods that you can use to transfer money from a prepaid card to your bank account. Transferring funds from your prepaid card to your prepaid card to your bank account is quite an easy thing to do especially when you are the type that is used to with online money transfers.
So checkout the methods below on how to transfer money from prepaid card to bank account and then choose which one suits you best according to the card that you have.
Method 1: How to Transfer Money from Your Prepaid Card to Bank Account Using PayPal
This method requires you to send your funds first from your prepaid card to your PayPal account (PayPal will charge you a minimal fee for that) and then now from your PayPal account to Bank account.
Step 1: Create A PayPal Account
In case you do not have a PayPal account then this first step for you but if you already have one, you can skip this step. In order to create a PayPal account, you will need the following details:
- Full name
- A valid ID
- Phone Number
It is necessary to note that PayPal is not accepted in all countries so if your country is one the country's where PayPal works, then you can create an account from their website PayPal.
Step 2: Link Your Prepaid Card and an Active Bank Account to your PayPal
Once you already have a PayPal account, you can now link your prepaid card account to your PayPal as this will let you send money from your card to PayPal account.
You will also need to link an active bank account, debit card, or credit card to your account as this where you will be able to withdraw the money you receive from your prepaid card.
You can follow the steps below in order to link your bank account to PayPal:
- Log in to your PayPal account.
- Click on “Wallet.”
- Choose “Link a Card” or “Link a Bank” depending on the type of account you have.
- Enter the required information and finish the verification process.
In order to Link your Prepaid card, you can follow the steps below:
- Log in to your PayPal account.
- Click on “Wallet.”
- Choose “Link a Bank Account.”
- Enter a few random letters in the section marked "Bank Details." You will then be prompted to manually enter the prepaid card information.
- Type in the account number and routing number on your prepaid card.
- Link by clicking “Agree.”
- Don't press the "Confirm Instantly" button. To finalize the transfer, you must sign into your personal bank account.
- Instead, select "Request Deposits" and wait for PayPal to approve your request. The money on your prepaid card can then be transferred to your PayPal account using this method.
- Wait for approval. PayPal will send test charges to your card and bank account. This will be refunded.
As soon as you get a notification that the charges were approved, you can then send money from your prepaid card to PayPal.
Step 3: Transfer Money from A Prepaid Card to Your PayPal And Bank Account
From here, you are set to transfer your funds from your prepaid card to PayPal and bank account:
- Log in to your PayPal account.
- Click on “Wallet.”
- Choose “Send Money,” then, “Add Money Online.”
- Choose your link prepaid card as the source of funds.
- Fill in the amount to transfer, then complete the transaction.
From here, you will instantly see the money reflect in your PayPal account and then now you can transfer the money from your PayPal account to your Bank account for easy withdrawal in cash form.
Fees - It’s free if you use the regular transfer option. However, this will take 3 to 5 business days. PayPal will charge you 1% of the total amount if you choose the instant transfer option.
Method 2: How to Transfer Money from Your Prepaid Card to Your Bank Account Using MoneyGram
By making use of a remittance service like MoneyGram, you can transfer money to your bank account cheaply and quicker.
Advantages of Using this Method
Safe - Money Gram has been operational since the year 1940 and today, they stand as the second largest money transfer company in the world.
Reliable - Several individuals have made used of this method and confirm its success and it can work for almost any prepaid card.
Fats - You will be able to receive your money in minutes incase you choose the debit card deposit option.
Cheap - With MoneyGram, the fees are as low as $1.99.
So now that you have seen the advantages of making use of this method, here are the steps that you can follow in order to transfer money from your prepaid card to your bank account using MoneyGram:
Step 1: Sign Up For an Account at MoneyGram
In order to create an account with this money transfer service, you will have to go to the MoneyGram Website and then click on signup which will allows you create an account using your Email.
Step 2: Go to the Send Money Page and Fill Out Payment Info
As soon as your account is ready, click on the "Send Money" option in the menu and then a page will appear where you will have to follow the steps below:
- Enter the amount that you want to send
- Select Debit/Credit Card
- Select the ‘Account Deposit’ option (or the ‘Debit Card Deposit’ option if you don’t see the ‘Account Deposit’ option. This will require that you have a debit card linked to the bank account you’re sending money to.
Step3: Complete Your Bank Details
Once you have clicked Next, you will be taken to a page where you will have to enter your receiver's details - which will be information like your name, address and account or debit card details.
Once you have filled in the correct details, tap next. Your transaction will be completed in some few minutes with respect to banking hours and systems availability.
Fees - You’ll pay a fee based on the amount you are sending. For amounts less than $200, MoneyGram charges you a base fee of $1.99. For amounts above $200, it charges $1.99 + 1% of the transferred amount. For example, if you’re going to send $500, the fee will be $1.99 + $5, for a total of $6.99.
Method 3: How to Transfer Money from Your Prepaid Card to Your Bank Account Via USPS Money Order
You are also able to send money from your prepaid card to your bank account using a US Postal Money Order.
But different from the other listed methods above, here you will have to go to the Post office so it si necessary that you look up to the address and then confirm their policies in your area.
You can follow the steps below to transfer money from prepaid card to bank account via this service:
- Move to your local post office.
- Purchase a US Postal Money Order using the balance on your gift card.
- Endorse the money order to yourself. Make sure to fill in all the necessary information, including your name and address.
- Go to your bank to cash it out or to deposit it into your account.
- Some post offices can also cash out the money order for you as long as they have enough cash on hand.
How to Add Money to Prepaid Cards
As soon as you have already used all your available balance on your prepaid card, you will have to add more money to it if you want to continue using it like for example to transfer money from prepaid card to bank account.
You can follow the steps below in order to add money to a prepaid card:
- Deposit money directly to the card from a checking or savings account.
- Deposit money to the card from paychecks or other sources of regular income.
- Reload the card at a retail location using cash.
- Purchase a reload pack to add a predetermined amount of money to your card.
Which Prepaid Cards Allow Transfers To Bank Accounts
Knowing the prepaid cards that allows you to transfer money to your bank account is necessary as it it helps you gain time.
American Express Bluebird
The American Express Bluebird card is a prepaid debit card that has no monthly or annual fees, no overdraft fees, no foreign transaction fees and fee ATM use.
The card can be loaded with direct deposit, cash from a Walmart cash machine, mobile check deposit, or by using a debit or credit card. It can be used to pay bills online or on a mobile device.
American Express is the company that issues the card, which acts as an alternative checking account for people who have been turned down by conventional banks.
Key2Benefits Prepaid Card
If you have a Key2Benefits Prepaid Card, you can transfer some or all of your balance to your personal savings or checking account. You need to have the Routing Number and Account Number of the bank account you wish to transfer into for you to complete the transaction.
Green Dot Prepaid Visa Card
You can use the Green Dot Prepaid Visa Card as a prepaid debit card to make purchases, settle debts, and withdraw cash. Depending on your demands, they have various cards, including one designed especially for teenagers.
Only retail establishments provide Green Dot Prepaid Visa Cards.
To the extent permitted by the restrictions and regulations of the receiving bank, you can transfer funds from your Green Dot prepaid card to other bank accounts.
Netspend Prepaid Card
A Netspend Prepaid Card will allow you to move money to your bank account, as well as to other Netspend cardholders.
Final Thoughts on How to Transfer Money from Prepaid Card to Bank Account
The kind of card you have will determine whether you can transfer money from it to your bank account. The customer care department of your prepaid card or gift card issuer is the best place to look to see if your card has this capability.
If using your prepaid card to transfer money to your bank account is not an option, you can attempt the alternatives mentioned above, such as utilizing a money transfer service or mobile payment apps.
Frequently Asked Questions
How Long Does It Take To Transfer Money With MoneyGram?
All of MoneyGram’s transactions occur within the same day, including prepaid card transfers to your bank account.
Is There A Limit When Transferring Money Using MoneyGram?
The limit for sending money online is $10,000 per transaction and up to $10,000 every 30 calendar days. If you need to send more funds, you’ll have to do it in person at one of the MoneyGram agent locations, however, according to the MoneyGram FAQ, most agent locations only accept cash.
How do I transfer money from a prepaid Visa card?
How does Visa Direct work? Access the service through Netbanking, mobile or ATM. Enter the recipient's 16 digit Visa card number and the amount you want to send. The money will be received into the recipient Visa credit, debit or prepaid card.
Can I transfer money from prepaid card to a savings account?
Yes. You can transfer money from a prepaid card to a bank account in almost all cases.