Writer: Ashley Fricker
Editor: Lillian Guevara-Castro
The best prepaid cards for tax refunds are the ones that accept direct deposit. That lets the government send your federal tax refund straight to your card, so you can get your money faster and avoid waiting on snail mail.
Once your tax return is deposited, you can use the card to spend the money just as you would with any other debit or credit card. These cards all work on the Visa, Mastercard, or American Express payment networks, and can be used everywhere those cards are accepted.
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Best Overall Prepaid Card For Tax Refunds
Our top-rated prepaid card is the PayPal Prepaid Mastercard®. This card is especially handy if you have a PayPal account because you can transfer funds directly from your PayPal account to the PayPal Prepaid Mastercard®.
- Move money from your PayPal account to fund your prepaid card account.
- Earn cash back and personalized offers, just for using your card.
- With Direct Deposit, you can get paid faster than a paper check.
- Card issued by The Bancorp Bank, Member FDIC. Card may be used everywhere Debit Mastercard is accepted.
- Click PayPal Prepaid Mastercard® for additional features & program details, and to request a Card.
Additional Disclosure: The information related to PayPal Prepaid Mastercard® has been collected by CardRates.com and has not been reviewed or provided by the issuer or provider of this product or service.
If you choose to have other income streams deposited to your PayPal Prepaid Mastercard®, such as employment income or government benefits checks, you’ll receive your payment up to two days faster than with a traditional bank account. If you need to load cash onto the card, you can do so at more than 130,000 nationwide reload locations.
Any funds loaded onto this card are FDIC-insured for up to $250,000, so you need not worry about anyone else getting their hands on your refund.
More Top-Rated Prepaid Cards For Tax Refunds
While we highly recommend the PayPal Prepaid Mastercard®, other prepaid cards are available that may provide you with just what you need — a means to receive your tax refund check electronically. All of the following prepaid debit cards are direct deposit compatible and free to apply for online.
This card is currently not available.
The Brink’s Armored™ Account allows for mobile check deposit, so even if you were to receive your tax return in the mail, you could deposit the funds to your Brinks Mastercard via the card’s mobile app. You can personalize your card with a family photo or other unique image, or choose from one of the four card images offered.
This card is currently not available.
The NetSpend® Visa® Prepaid Card is similar to the NetSpend Prepaid Visa Card in the number two position. You can choose your card design, earn Payback Rewards, and receive account alerts, among other features. As with any prepaid or credit card you agree to, review the cardholder agreement and fees associated with the account so you’re not surprised when you go to look at your transaction history.
This card is currently not available.
Our first prepaid card from American Express, the Serve® American Express® Prepaid Debit Account is refreshing in that it doesn’t charge many of the fees other prepaid cards on this list charge. If you’re worried about acceptance, rest assured knowing that American Express is accepted at 99% of places that take credit cards.
This card is currently not available.
The next Amex card on this list, the Bluebird® American Express® Prepaid Debit Account is a great bank account alternative. You’ll enjoy free ATM withdrawals, free online bill pay, and 24/7 customer service with a live agent, among other valuable features you’d expect from one of the world’s largest banks. In addition to accepting your refund check, this card can serve as an EIP card — which means you can receive economic impact payments on it as well.
This card is currently not available.
If you plan to save your tax refund, this is the card for you. What differentiates the The Mango Prepaid Mastercard® from the other prepaid cards on this list is its ridiculous savings account that lets cardholders earn up to 6.00% APY. The maximum allowable savings account balance is $5,000.
*Please see site for full terms and conditions.
Additional Disclosure: Walmart MoneyCard® is a debit card offer.
And in our final spot, we have the Walmart MoneyCard®, a perfectly fine option for anyone who wants to receive their tax refund check electronically. It is also the best prepaid card for Walmart purchases, thanks to its generous cash back rewards. And your savings will earn 2% interest.
Can You Recieve Your Tax Refund On a Prepaid Card?
For the 5.4% of unbanked U.S. households, a prepaid debit card is a perfect solution for quickly and safely receiving their tax refund. Any prepaid debit card that is direct deposit compatible can accept an electronic tax refund transfer.
Every prepaid card that accepts direct deposits has a routing number and an account number — just like a bank account. When you file your taxes, one of the last steps is to indicate how you’d like to receive your money. Enter your prepaid card account number and routing number into the appropriate fields and choose “checking” as the account type to receive your refund to your card.
You can log in to your online prepaid card account to find your routing number. If you have a NetSpend card, you can also text DIRECT to 22622 to have your routing number texted to you.
What Fees Do Prepaid Cards Charge?
Unfortunately, prepaid cards often come with several fees, which can make them a pricey way to access your money. That’s because many prepaid card companies rely on those charges to make money, since they don’t earn interest the way credit card issuers do.
Here’s a list of fees that some prepaid cards charge:
- monthly fee
- per-transaction fee (each time you use the card to pay)
- ATM withdrawal fee
- ATM balance inquiry fee
- Cash reload fee
- monthly inactivity fee (usually after 90 days with no transactions)
- card purchase fee (if purchased in a store)
- expedited mobile check load fee
- foreign transaction fee
- declined transaction fee
- card replacement fee
- custom card fee
- expedited card delivery fee
The silver lining: Not all prepaid cards charge these fees. The Bluebird® American Express® Prepaid Debit Account skips many of these fees — you won’t pay an ATM fee or any of the other charges that just seem unfair.
The bottom line is that having a bank account is the cheapest way to receive your refund quickly and affordably, but a prepaid card will still get the job done. Be sure to read over the cardholder agreement and understand its fee structure before signing up for any prepaid card.
How Long Does It Take to Get Your Tax Refund On a Prepaid Card?
The IRS generally issues refunds within 21 days of accepting your return. Once the payment is initiated, your money will be available in your prepaid card account up to two days faster than if you’d elected to deposit your refund into a bank account.
Some cards limit the amount you can have deposited at one time. For example, the Netspend Visa Prepaid Card limits deposits to $7,500. If you’re expecting a larger return, you’ll need to contact the bank beforehand.
Can You Get an Advance On Your Tax Return?
Yes, there are two ways to get an advance on your federal tax refund.
A tax refund loan, which is different from a refund advance offered by some tax preparation services, usually comes from a small lender that charges a flat fee to front you money until your tax refund arrives. In many cases, the terms are similar to a payday loan and can get expensive fast.
But a tax preparation service like Intuit TurboTax, Jackson Hewitt, and H&R Block can usually give you access to part of your refund (based on the amount of your refund) via a tax refund card. TurboTax issues its Turbo® Visa debit card to provide its customers with an advance on their return once their return is accepted by the IRS.
We recommend avoiding tax return loans, but if you’re working with a reputable tax filer, it may be worth asking your tax preparer if they offer refund advance options. Most do these days.
Compare the Best Prepaid Cards For Tax Refunds Online
We’ve covered eight solid options if you need a simple way to receive your tax refund. Whether you don’t have a bank account or you just want to keep your refund separate from your everyday checking account, there’s likely a card here that fits your needs.
If you’re a PayPal account holder, check out the PayPal Prepaid Mastercard®. If you plan to save your refund for a rainy day, check out the The Mango Prepaid Mastercard®. If you plan to use the card for regular spending, check out the fee-free Bluebird® American Express® Prepaid Debit Account that has many of the same features as a bank account from a financial institution.
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