What is a prepaid card? Prepaid Card is a reloadable cash card that serves to pay for airline tickets booking, hotel reservations, rentals, and other forms of online and actual purchases. Meanwhile, these prepaid cards can make your life more convenient because it can help you transfer funds to your bank account hassle-free. However, some people are not knowledgeable about it; therefore, I will show you ways on how to do it whether you prefer to pay fees, or you could go free.
There are actually ways to transfer money from prepaid card to bank account. First, you just need to link your prepaid card from any participating bank account; however, fees are determined by the transferor’s bank. Another way is through Visa gift card balances, where transactions may take up 3-5 business days.
When using prepaid cards, usually you have to pay some fees and there may be different types of fees for using a prepaid card that is why you must learn different ways to use it as this can save you time and money, especially when doing money transactions. Hence, here are the simplified ways on how to transfer funds from your prepaid cards to your bank account.
How To Transfer Money From Prepaid Card To Bank Account
The simplest and most convenient way to transfer cash to your bank account is online. However, there are few steps to take and the transaction can take a few days. Therefore, here is the step-by-step procedure on how to transfer funds from your prepaid card to your bank account. Later on, you can choose which method you will use whether fee-based or free-based.
NOTE: I will take Netspend ® Visa ® Prepaid Card as my example, although the process is almost similar to other prepaid cards.
STEP ONE: Get the Bank Account Number and Routing Number
The first thing to do is to get the account number and routing number associated with your prepaid card since each prepaid card has an issuing bank that is actually unique from the card issuer.
Let’s take an example for Netspend Visa Prepaid Card; the issuing bank is Metabank, which is an FDIC Member. The account number issued by the bank is unique and it can only identify your prepaid card. Moreover, the account number is different from the number listed on the face of your prepaid.
List of Prepaid Card With Their Issuing Bank
Here is a table that shows the list of commonly used prepaid cards with their issuing bank and whether they are an FDIC Member or not.
|NAME OF PREPAID CARD||ISSUING BANK||FDIC MEMBER|
|Brinks Prepaid Mastercard®||Axos Bank®||YES|
|Kroger REWARDS Prepaid Visa® Card||U.S Bank National Association||YES|
|Netspend® Visa® Prepaid Card||MetaBank®||YES|
|PayPal Prepaid Mastercard®||The Bankcorp Bank||YES|
|Walmart MoneyCard® Prepaid Debit Card||Green Dot Bank||YES|
|Western Union® Netspend® Mastercard® Prepaid Card||MetaBank®||YES|
It is easy to obtain this information for your prepaid card, you just simply log into your prepaid card account, and then select the button or the link to add money or transfer money. Once you are done, the issuing bank, the account number, and the routing number of your prepaid card will appear under the option for adding money from your bank account.
STEP TWO: Link your Prepaid Card to your Bank Account
In order for you to transfer money from your prepaid card to any other bank account, you need to set up an external account through your bank. For example, linking your Netspend prepaid card or any other prepaid card with your bank account can take two simple steps.
Here are the steps below:
- To add your prepaid card to your bank account, you need to log in first to your bank account and then scroll where you can transfer funds.
NOTE: Your bank should have a place where you can do a setup for your external account.
- To make an external account, you can use your bank account number and routing number of your prepaid card
TIP: If you experience some issues or problems, try to call your bank to assist you on how to do the process.
STEP THREE: Complete the Test Deposits
Before you can transfer a huge amount of money to your prepaid card or to any new account, your bank will require verification by conducting two small test deposits to your account. Once the deposits appeared in your account, you log into your bank account and then you enter the amount of the test deposits.
This confirms that the external account has been set up successfully and the transferred money is received by your prepaid card account. Once the verification process is complete, you can now enjoy the convenience of transferring money from your bank to your prepaid card, in no sweat.
STEP FOUR: Transfer Funds
Once your prepaid card account is completely set up with your bank account, the transaction will go simple and smoothly. Go to your bank’s website and then you fill up this information:
- The amount you want to transfer
- The account to transfer the money from
- Your prepaid card account
NOTE: The transaction generally will take at least one business day; therefore, be mindful that the money will not reflect immediately on your prepaid card.
You already know the basic steps on how to transfer money from prepaid card to your bank account. Therefore, it is your choice whether you want it to be fee-based or free-based. You can see below is a discussion of these two methods.
Choose your method: Fast or Free
Your prepaid card and your bank account are the two parties needed in order to make the transfer of money from a prepaid card to your bank account successful. However, before you can do a money transfer, you must make sure that your prepaid card is successfully linked to your bank account. In this way, transferring of funds will be much easier since your prepaid card account is readily connected to your bank. Just follow the steps above on how to link your bank account to your prepaid card.
Otherwise, here are the two basic steps on how to transfer money from your prepaid card to your bank account
When you visit your prepaid card’s account website, there is automatically a bank transfer option where you can just fill-up the form about the money transactions. For example, you are a Netspend prepaid cardholder, you could just simply tick or tap the bank transfer option and you are done. The downside for this type of money transfer is the fees for bank transfer that costs $4.95 per; however, the fee varies since they are determined by the transferor’s bank. Make sure as well, you consult the transferring bank for the availability of this service. You can check this site for the fees associated with your Netspend ® Visa ® Prepaid Card.
Another option is having a Square reader, this is a device you usually plug into your smartphones or tablets that allows you to take payments wherein you can just swipe the card just like your credit or debit card. No worries, if you do not have yet since you can get a basic magstripe reader for free once you signed up. After you have signed up, you need to pay 2.75% for every swipe; however, this is one of the easiest ways to transfer funds especially if you have the Square app linked to your bank account.
You could go for this method if you do not need the money right away since this will require three parties to do the trick. First, you must have a digital wallet, which is a downloadable mobile app, a Visa gift card, and then your bank account; the good thing here is that you can save money from paying fees.
Next, you must have installed Venmo, Pop Money, or Square Cash. These are mobile payment services, which can make the transferring process easy peasy. For example, you have an account for the Venmo app; you can now transfer your Visa gift card balances. NOTE: Visa gift card balances are not cash; however, you can convert them into cash using mobile payment services app that are mentioned above
Therefore, once you have the funds in your Venmo account, just choose the option “Transfer to Bank” from the account menu. Then you are done!
NOTE: The transaction process usually takes between one to three business days.
Even though these methods of transferring money is fast and simple, most of us still want an assurance that the money we will be sending is safe and secure, no matter what happens.
Here are certain criteria that your funds are insurable as long as you meet the following:
- Make sure your prepaid card is qualified for FDIC deposit coverage
To check whether your prepaid card is eligible for FDIC
deposit coverage, you can learn more by visiting this site.
- The prepaid card is successfully registered
- You must meet the specific deposit insurance requirements
However, there are some instances where FDIC deposit insurance does not apply to your funds IF you have experienced any of these scenarios:
- You lost your card
- Your card was stolen
- Your card provider declares bankruptcy
NOTE: In these situations, make sure you talk to your legal adviser for any legal options you can do to pursue the recovery of your funds.
Due to the trend of online banking, it makes banking activities easy and fast. That is why different banking companies continue to update and improve their features and facilities. One of the main features is the convenience in money transfer from a prepaid card to a bank account. With this simple transaction, it can be essential to make your banking activities cost-efficient, smart, and time-saving.