We all know that these days digital payments and cashless transactions, prepaid debit cards have become more popular. They offer a convenient and secure way to manage your finances.
But did you know that some of these cards also come with the added benefit of cash-back rewards? That’s right, you can now earn cash back on your purchases without the need for a traditional credit card or a credit check. In this post, we will quickly look at some of the Best Cash Back Prepaid Debit Cards available.
Benefits of Cash Back Debit Card
No Credit Check Required
Unlike credit cards, prepaid debit cards do not require a credit check, making them accessible to individuals with limited or no credit history.
Budgeting and Spending Control
Prepaid cards allow you to load a specific amount of money, helping you stick to a budget and avoid overspending.
Earn Cash Back on Purchases
Many prepaid debit cards now offer cash-back rewards on eligible purchases, providing an opportunity to earn rewards without going into debt.
No Interest or Late Fees
Since prepaid cards are not credit products, you won’t incur any interest charges or late fees, which can save you money in the long run.
Fraud Protection
Most prepaid cards come with fraud protection features, ensuring that you are not held responsible for unauthorized transactions.
Top 6 Cash Back Prepaid Debit Cards
1. Discover® Cashback Debit
The Discover® Cashback Debit is a top contender, offering an impressive 1% cash back on up to $3,000 in debit card purchases each month. With no fees, early pay options, and fraud protection, this card provides an excellent value proposition for those seeking a rewarding prepaid experience.
2. NetSpend® Visa® Prepaid Card
The NetSpend® Visa® Prepaid Card allows you to earn cash-back rewards through its Payback Rewards program. You’ll receive personalized offers based on your shopping habits, and the cashback will be credited to your account at the end of the following month.
3. Greenlight – Debit Card For Kids
The Greenlight – Debit Card For Kids is a unique offering that provides cash back on all purchases, with the option to auto-invest the rewards for college or other purposes. Parents can set flexible controls and receive real-time alerts, making it an excellent tool for teaching financial responsibility to children.
4. Walmart MoneyCard®
The Walmart MoneyCard® from Green Dot Bank offers cash-back rewards specifically for shopping at Walmart, both online and in-store, as well as at Walmart gas stations. You can earn up to $75 annually in cash-back rewards, which are credited to your card balance at the end of the reward year.
5. PayPal Prepaid Mastercard®
The PayPal Prepaid Mastercard® allows you to receive cash-back offers from selected merchants through the Payback Rewards program sponsored by NetSpend. You can also receive your paycheck or government benefits up to two days early with this card.
6. Serve® American Express® Prepaid Debit Account
The Serve® American Express® Prepaid Debit Account offers unlimited 1% cash back on every dollar you spend shopping in stores or online. The cashback is available to add to your account as soon as the transaction settles, providing instant gratification for your rewards.
Costs and Fees
While cash-back prepaid debit cards offer the advantage of earning rewards, it’s essential to consider the associated costs and fees. Some common fees to be aware of include:
- Monthly Maintenance Fees: Some cards charge a recurring monthly fee for maintaining the account, typically ranging from $0 to $10.
- Reload Fees: Adding money to the card balance may incur a reload fee, often between $2 and $5 per reload.
- ATM Withdrawal Fees: Withdrawing cash from ATMs, especially those out-of-network, can result in fees ranging from $1 to $3 per withdrawal.
- Foreign Transaction Fees: Making purchases or ATM withdrawals in a foreign currency may incur a foreign transaction fee, typically between 2% and 3% of the transaction amount.
How to Get a Cash Back Prepaid Debit Card
Applying for a cash-back prepaid debit card is generally a straightforward process:
Research and Compare Options: Start by researching different issuers and comparing the features, rewards, and fee structures of various prepaid debit cards.
Gather Required Documents: While prepaid cards don’t require a credit check, you’ll still need to provide some form of acceptable identification, such as a driver’s license, passport, or other official document. You may also need to provide your Social Security Number and contact information for verification purposes.
Complete the Application: Once you’ve selected a card, you can apply online, over the phone, or in person at a participating retailer. The application process typically involves providing your personal and identification details.
Activate the Card: After receiving your card, you’ll need to activate it by calling the provided phone number or following the online activation instructions. During this process, you’ll set up a Personal Identification Number (PIN) for added security.
Load Money onto the Card: Once activated, you can load money onto your prepaid debit card through various methods, such as direct deposit, bank transfers, or cash loads at retail locations.
How to Earn Cash Back with a Prepaid Card
Prepaid cards can offer cashback rewards when you use them to make qualifying purchases. The way cashback is earned and redeemed varies by the specific prepaid card. Some prepaid cards credit your account with points that can be redeemed for cash deposited back onto the card. Other cards allow you to receive cashback payouts via check or transfer to a separate bank account.
The cashback rate is set by the card issuer and may differ based on factors like the merchant, purchase category, or total spending amount for the month. A common structure is earning a higher cashback percentage for in-store purchases compared to a lower rate for online purchases.
Certain prepaid cards only provide cashback earnings when you take advantage of special limited-time offers or promotions. Cards co-branded with a specific retailer, like a Walmart prepaid card, may restrict cashback to purchases made at that merchant only.
There are usually caps on the maximum cashback you can earn per billing cycle or per year. For example, a card may limit cashback to $30 per month or $75 annually.
The timing of when you can redeem cashback rewards differs too. Some cards allow redemption once a purchase is posted, while others require waiting until the next calendar month or annual card anniversary.
It’s important to note that cash reloads, withdrawals, bill payments, and account transfers generally do not qualify for earning cashback rewards. Only posted purchases of eligible products and services earn the cashback benefit.
Conclusion
Cash-back prepaid debit cards offer a unique opportunity to earn rewards without the need for a credit check or the risk of accumulating debt. By choosing the right card and using it strategically, you can enjoy the convenience of a prepaid card while earning cash back on your everyday purchases.
Whether you’re looking for a budgeting tool, an alternative to traditional credit cards, or simply a way to earn rewards, the 6 best cash-back prepaid debit cards highlighted in this article provide excellent options to consider. With their various features, rewards programs, and fee structures, there’s a card that can meet your specific needs and help you maximize your earning potential.