Prepaid Cards
Prepaid cards, also known as prepaid debit, or stored value cards are convenient ways to make purchases and conduct other financial transactions. You do not need to have a bank account or a credit history to use a prepaid card. Read the card's terms and conditions before you buy.
Many cards carry protections similar to credit and debit cards. To obtain these benefits, you must follow the instructions for registering and activating your card. Be sure to record your card information, including the customer service telephone number, in a separate place, so you can get a replacement if your card is lost or stolen. Some prepaid card issuers may charge fees for card activation, maintenance and cash withdrawals.
Gift cards, a type of prepaid card, have extra protections, including that funds on the card can't expire within five years of when it was activated. However, if you don't use the card, the money stored on it can be sent to the unclaimed money office in your state or the state where the card issuer is incorporated. Visit https://www.usa.gov/unclaimed-money to locate missing money.
If you have a problem with a prepaid card, first contact the customer service number. Some cards are issued by state or national banks. If the problem still is not resolved with the bank or issuer, file a complaint with the proper authorities listed in the chart below:
| Type of Institution | Regulatory Agency |
|---|---|
| State-chartered banks and trust companies | Federal Deposit Insurance Corporation and state banking authorities |
| Banks with National in their name or N.A. after their name | Office of the Comptroller of the Currency, U.S. Department of the Treasury |
| Federal savings and loans and federal savings bank | Office of the Comptroller of the Currency, U.S. Department of the Treasury |
| Federally chartered credit unions | National Credit Union Administration |
| State-chartered banks that are members of the Federal Reserve System | Federal Reserve System |
U.S. General Services Administration (GSA). (2016, January). Prepaid cards. In Consumer action handbook (p. 8). Retrieved December 2, 2016, from https://www.usa.gov/