You got money, and just as it sounds, the money is found in your prepaid card, and, you urgently need to get the money in your bank account, then, knowing how to transfer money from prepaid card to bank account can be useful in such situations.
Prepaid cards offer a more convenient way to send and receive money and since these ones are independent of a bank account, reloading a prepaid card shouldn't be much of a hassle since there are many ways to add money to a prepaid card.
Some prepaid cards are designed for international shopping which makes then ideal choice for international shoppers that shop catalogs from online shops found in different regions.
Though prepaid cards let you conveniently send and receive money, a bank account, on the other hand, lets you manage your funds by carrying out many activities including sending and receiving money, and offers more security for your funds.
A bank is a place deigned to keep money. Which a bank account, you can keep as much money as you want without having to think of limits and fear of losing funds. Most US banks are FDIC secured meaning, your funds are guaranteed even if the bank runs into bankrupt.
That said, moving money from a prepaid card to a bank account can help you manage your funds in a more flexible manner and if that's what you're looking to do, then, you're at the right place. You can also get to know how to transfer money from a bank account to a prepaid card for convenience.
In this article, I will show you how to transfer money from prepaid card to bank account without hassle.
What is a Prepaid Card and How Does it Works?
A prepaid card is a payment card that may be reloaded and used to purchase products and services. You can use the card to buy goods and services both online and in real stores. Prepaid cards function similarly to debit cards, except they are not always linked to a bank or credit union account.
The majority of prepaid card providers allow you to manage your account online. As a result, it makes using the card a breeze. You can check your account balance and statements online, among other things. During the card activation process, you must create an online account. Most prepaid card issuers let you apply for your card online and pick it up at a physical address you specify during the application process.
Types of Prepaid Cards
1. Prepaid Debit Cards
This is a credit/debit card that can be used anywhere that accepts credit/debit cards. If you've successfully used your prepaid card in a variety of locations, you have a regular prepaid card.
2. Prepaid Gift Cards
You can only buy products and services from participating retailers, such as Home Depot, with this type of card.
How Do I Get a Prepaid Card?
You can get a prepaid card when you apply for the card from the reputable financial institution. You should start by looking for prepaid card issuers on the internet. Many prepaid card companies are willing to provide you with a card.
After you've found a few companies, you can research them to discover which ones are the most suitable. There are a number of fees to look at, including withdrawal fees, overdraft fees, monthly fees, inactivity fees, and so on.
After you've decided on the best card for your needs, go to the card issuer's website to begin your application. On the form you receive, you will fill in various details and submit it for processing.
You will then be notified of the status of your card application. You will receive and activate your card once you have completed your application.
After you've activated the card, you'll need to recharge it before you may use it. You may reload most prepaid cards at physical locations. You can also reload a prepaid card by transferring funds from a debit card or from a bank account.
What is a Bank Account?
A bank account is a financial account maintained by a bank or other financial institution in which the bank and its customers record their financial transactions.
A checking account is a deposit account that facilitates withdrawals and deposits at a financial institution.
Checking accounts, also known as demand accounts or transactional accounts, are highly liquid accounts that can be accessed via cheques, automated teller machines, and electronic debits, among other methods. A checking account differs from other types of bank accounts in that it often allows for unrestricted withdrawals and deposits, although savings accounts may have restrictions on both.
Can I Transfer Money from Prepaid Card to Bank Account?
Yes, you can. To transfer money from a prepaid card to bank account, you need to check whether your prepaid card issuer lets you manage your card from an online platform. If it does, then, transferring money from your prepaid card to a bank account will be even easier. However, you may need the bank account and routing numbers to complete the transfer.
In the case where your prepaid card issuer doesn't offer an online platform, then you can use third party services such as PayPal, MoneyGram to transfer money from prepaid card to bank account.
How to Transfer Money from Prepaid Card to Bank Account
Before proceeding with any steps, you need to check if your card issuer features an online platform that lets you manage your prepaid card account online from your phone. If it does, then there is a website or mobile app that can be used to access the platform.
Most prepaid cards have a similar process for transferring funds from one company to another. You would link your bank account with the Netspend® Visa® Prepaid Card, for example, by providing the routing and account numbers. After that, you can use the website to start the transfer.
You may download and use apps from several prepaid card issuers. Check with the card issuer to see whether one is available for optimal flexibility and convenience. If it does, you can use it to perform a variety of card activities on the go, including moving funds from the card to a chosen bank account.
Below are the steps to follow when transferring money from prepaid card to bank account.
- Log into your card account online.
- Provide the bank account details you want to transfer money to.
- Next, navigate to transfers and choose to transfer to a bank account.
- Enter the amount to transfer.
- Enter your PIN or any other convenient verification method.
- Finally, tap send to complete the transfer process.
The money will be in your account practically instantly or within a few business days, depending on the prepaid card provider. However, because the company must authenticate the bank account you linked, the first transfer you make will most likely take longer.
Prepaid cards come with a variety of fees, and many of them will charge you to transfer a balance from the card. The cost will vary depending on the issuer and how you initiate the action.
For example, Netspend does not charge a fee for mobile transfers into your bank account, but it does charge $4.95 if you do it over the phone with the help of a customer service professional.
When you transfer funds from your Brink's Prepaid Mastercard® to a bank account at another financial institution via ACH, you'll be charged $3.00.
Check the cost structure before applying for the card to ensure that it is the greatest fit for you and your needs. Check the fees a corporation may charge if you received the card as a gift and only want the money instead of using it for store purchases.
It's better to cash the card out than to get nothing, which happens a lot when there's not much money left on the card. According to a Bankrate.com research from 2021, 51% of respondents in the United States leave money on their gift cards, resulting in a loss of $15.3 billion to customers nationally.
You can as well use third-party services such as MoneyGram, PayPal, Venmo, and Western Union, among others, to transfer money directly from your prepaid card account to your bank account. These platforms allow you to fund your bank transfer with money from your prepaid card. To proceed, you must first add the prepaid card to the relevant third-party app.
In order to utilize the services of the third-party app, you must first signup with them. In general, these systems allow you to transfer money from a debit card to a bank account via an intermediary. Keep in mind that a prepaid card can also be used as a debit card. You can also fund your transactions with a bank account.
If you are confused of which one to use, don't worry, we will highlight steps to use some few of these third party apps to transfer money from prepaid card to bank account.
Other Ways to Transfer Money from Prepaid Card to Bank Account
As mentioned earlier, you can use third-party services such as PayPal, MoneyGram and other to transfer money from prepaid card to bank account most especially if your card issuer doesn't feature an online platform where you can conveniently manage your prepaid card account.
1. How to Transfer Money from Prepaid Card to Bank Account Using MoneyGram
You can transfer funds to your bank account quickly, conveniently, and safely with a remittance provider like MoneyGram.
Here are the steps to transfer money from Prepaid Card to Bank Account Using MoneyGram
Step 1: Create an Account at MoneyGram
To begin using MoneyGram, you will first need to sign up for an account at MoneyGram website. You may be required to provide some additional information such as Photo ID to verify your account during the signup process.
Step 2: Go to "Send Money" section and Provide the Payment Info
After you've signed up, go to the menu and select "Send Money."
Here's what you are required to do on this page.
- Enter the amount that you want to send
- Select Debit/Credit Card
- Choose 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.
Step 3: Provide Your Bank Details and Send the Money
On the next page, fill in the information for your beneficiary. This will include details such as your name, address, and account/debit card information.
Next, tap the "Next" button. Many account deposits are handled within minutes, according to the MoneyGram website, depending on banking hours and system availability.
How Much Does it Costs to Transfer Money With MoneyGram?
You'll be charged a fee based on the amount you send. MoneyGram charges a base cost of $1.99 for sums under $200. It charges $1.99 + 1% of the deposited amount for quantities over $200.
If you transfer $500, for example, the price will be $1.99 + $5, for a total of $6.99.
The cost calculator on the MoneyGram homepage can help you estimate the fee before you send the money.
How to Save Money On Transfers With MoneyGram
Enrolling in the MoneyGram Plus Rewards program will save you money if you use this service frequently.
Fees on your second transfer will be reduced by 20%, and fees on your fifth transfer will be reduced by 40%.
If you're sending a significant quantity of money, the MoneyGram Plus Rewards program can help you save a lot of money!
Is There A Limit When Transferring Money Using MoneyGram?
The maximum amount you can send money online is $10,000 per transaction and $10,000 every 30 days.
If you need to send more money, you'll have to do so in person at a MoneyGram agent location; however, most agent locations only accept cash, according to the MoneyGram FAQ.
How Long Does It Take To Transfer Money With MoneyGram?
Money transfers from MoneyGram (including transfer of funds from prepaid cards to bank account) are usually completed within the same day.
2. How to Transfer Money from Prepaid Card to Bank Account Using PayPal
You can transfer the funds from your prepaid card to your PayPal account. PayPal will charge you a little fee, but the transaction is simple and may be completed entirely online.
Here are the steps to follow when transferring money from prepaid card to bank account using PayPal as a bridge.
Step 1: Create and Verify Your PayPal Account
When trying to send money with PayPal, the very first step to take is to create and verify a PayPal account. If you create an account without verifying, you may not be able to do things link sending money from your account. For your convenience, here is how to create and verify a PayPal account.
Step 2: Add/Link Your Prepaid Card and Bank Account to Your PayPal Account.
The next thing to do is to link your PayPal account to your prepaid card account. You'll be able to send money from your card to your PayPal account using this method.
You must also link your account to an active bank account, debit card, or credit card. This is where you'll get the cash from your prepaid card.
Follow these steps to link your bank account:
- 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.
You need to add a supported bank account to PayPal. Here are the best virtual banks for PayPal.
Here are the steps to link your prepaid card to PayPal:
- Log in to your PayPal account.
- Click on "Wallet."
- Choose "Link a Bank Account."
- In the bank details field, type in some random letters and hit enter. This will prompt you to enter the prepaid card details manually.
- Type in the account number and routing number on your prepaid card.
- Link by clicking "Agree."
- Don't click on "Confirm Instantly." This will require you to log into your personal bank account to confirm the transfer.
- Instead, click on "Request Deposits" and wait for your request to be approved by PayPal. This will allow you to transfer money from your prepaid card to your PayPal account.
- Wait for approval. PayPal will send test charges to your card and bank account. This will be refunded.
Step 3: Transfer Money from Your Prepaid Card to PayPal and to Bank Account
Once you've linked both your prepaid card and bank account to PayPal, the next thing to do is to transfer money from your prepaid card to your bank account using PayPal as a bridge for the transaction.
Follow the steps below to complete the transfer:
- Log in to your PayPal account.
- Tap "Wallet."
- Select "Send Money," then, "Add Money Online."
- Select your link prepaid card as the source of funds.
- Fill in the amount to transfer, then complete the transaction.
Keep in mind!
PayPal does accepts prepaid cards but not all, you might not be able to add your prepaid card to PayPal because it is not just supported by the service.
To avoid such issues, you can use virtual cards for PayPal.
What are the Fees Involved When Transferring Funds from Prepaid Card to Bank Account Using PayPal?
- If you utilize the standard transfer option, it's free. This will, however, take 3 to 5 business days.
- If you choose the instant transfer option, PayPal will charge you 1% of the entire amount.
3. Use CardCash to Transfer Money from Prepaid Gift Card to Bank Account
CardCash allows you to sell a prepaid gift card that still has a balance and receive cash in exchange. When you've done that, you'll be able to put the funds into a deposit account that you can use for whatever.
To utilize CardCash, go to their website and enter the gift card number and amount. You'll see a button labeled "receive offer" that you should click. After that, you'll be given a price for your card, which will be determined by the sort of card you have. The amount might be as much as 92 percent of the total value.
If you accept the sale, you will be asked to provide your gift card number as well as your social security number. Then you can choose between ACH direct deposit and PayPal Express to have the money sent directly into your bank account. The money will be deposited into your PayPal account in the latter case. You can either utilize the money in that account to make purchases or move it to your personal bank account.
How Long Does It Takes to Transfer Money from Prepaid Card to Bank Account?
The time it takes for the transaction to complete is determined by your bank. Some transfers can be accomplished in as little as a few hours or on the same day.
Most banks, on the other hand, take a few business days to deposit funds into your account.
This is due to the fact that you must create an online "transfer-to" account, which can take up to 5 business days to authenticate.
After that, it may take up to two business days for the funds to reflect in your account.
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Final Thoughts On How to Transfer Money from Prepaid Card to Bank Account
Transferring money from a prepaid card to bank account can help in managing funds in a more flexible manner. Most prepaid card issuers feature an online platform which lets their customers manage their cards account online conveniently. If they do, then they surely provide an website or mobile app where you can manage your account.
Transferring money from your card directly to a bank account is straightforward and cheap, however, if your card issuer doesn't feature an online platform, then, you might need to use a third party such as PayPal or MoneyGram to complete the transfer.