Reloadable Visa cards have unique benefits for consumers, offering a convenient Visa-backed way to pay where you shop most. While they look and even function similarly to credit or debit cards, they don't have a linked bank account or line of credit. The use of one doesn't get reported to a credit agency, either.
Why is this important? A 2021 FDIC survey reveals that nearly 5.9 million U.S. households don't have access to a traditional savings or checking account. Yet, these consumers still need to be able to buy things, such as at the self-checkout stand at their grocery store or when paying for gas at the pump.
Reloadable Visa cards empower shoppers with a flexible and secure way to pay that can be more reliable than cash. When money is loaded directly onto the card, it can be used anywhere Visa cards are accepted. Unlike gift cards, which have a set amount and are no longer useful when spent, the reloadable Visa cards can be reloaded again and again.
Reloadable Visa cards do not help build credit and are different from secured credit cards as they aren't connected to a credit account. They also differ from prepaid Visa cards, as those expire after a time, leaving the unused funds to go to waste.
Reloadable Visa card features
At first glance, reloadable Visa cards appear like any other Visa credit card, but they are very different. For one, they use funds that have been loaded onto the card account by the consumer ahead of time, and using them incurs no debt. Because they aren't connected to a credit account, card transactions don't go on a person's credit report.
Loading money is often seamless, with many ways to add to the card's balance. Options include having workplace direct deposits sent directly to the card account and adding cash or paychecks by visiting the customer service counter of a participating retailer. Consumers can load as much or as little as they want each time and reload as needed to maintain the balance required for day-to-day purchases.
Reloadable Visa cards also come with some benefits associated with credit cards. For example, Visa's Zero Liability Protection program applies to card purchases. If the authorized cardholder didn't make a purchase due to fraud or card loss, they won't be held liable. This offers peace of mind for those who use their cards online or who travel. It's also more secure than cash, which has no such protection.
These cards also work similarly to gift cards in that you have to put money on them before you use them. However, they are very different from reloadable gift cards in that they can be reloaded again and again, and the funds don't expire. Consumers can also set account limits, such as a $200 daily spend limit, to help manage funds and stay within a budget. This feature is rarely offered with reloadable gift cards.
The cost to set up and use reloadable Visa cards varies by issuer and can add up over time. Common fee types include monthly service fees, transaction fees, ATM fees, and reload fees. It's important to read the card terms carefully before signing up so you don't get hit with any surprise costs. The same goes for security features, protections, and card limits; while each has the backing of Visa, additional services differ by card company. For example, some cards let you load as much as $15,000 at once, but this isn't the case for all cards.
How to get a reloadable Visa card
One of the good things about a reloadable Visa card is that they are available in more and more places than ever before. Common destinations to get cards include the following:
- Bank, credit union, or financial institution (in person, online, or over the phone)
- Online third-party retailers, such as Amazon, Walmart, or Target
- The Visa.com website
- The gift card section of a retailer, such as where you shop for groceries or gas
Once you have found the place you want to shop, you'll need to take the following steps. (Note that you must be 18 years or older to purchase a reloadable Visa card.)
- Pick the card you want to buy and decide how much money you want to put on it at first.
- Provide the retailer with necessary personal information, such as your name and mailing address, birthday, and Social Security Number. (These ensure you can use all available card features, such as online purchases and deposit insurance.)
- Pay for the funds that will be loaded onto the card with cash or a paycheck. Credit cards can be used to buy the card but not fund it.
Setting up your card may take some time, but after it's activated, reloading should be a simple and quick process.
How to use a reloadable Visa card
Reloadable Visa cards are incredibly popular because they can be used in many places. Like a standard Visa card, this includes paying for utility bills, filling up the car with gas, shopping for groceries, funding your Netflix subscription, and getting a ride from Uber or Lyft. You can use the cards anywhere Visa is accepted, and the store should show the Visa logo at checkout to confirm they take the card.
Here are some additional things to know about using a reloadable Visa card:
- You can choose to load money on the card with cash at a participating ReadyLink location, through direct paycheck deposit, by taking a photo of a check through the card issuer's mobile app, by transferring from another card or bank account, or with the purchase of a reload pack.
- ATM cash withdrawal is available for most cards, but there may be a fee.
- Online purchases with a reloadable Visa card may require additional information, such as a matching billing address and phone number, plus secure information from the card itself.
- To see how much money you have left on the card, check the online account balance through the card provider's app or website.
Most cards are non-transferable, meaning they are for the cardholder to use only. Unlike a gift card, you can't give it to someone else and have it become their card. They will need to have their own reloadable Visa card account.
Cards can't be used for transactions that total more than the available balance. Anything over the amount will be declined at the point of purchase (such as at the checkout counter). The card issuer can also cancel the account or take back the card if they decide the card has been used outside of the agreed-upon card terms.
To help manage the amount on the card, consider setting up notifications and alerts. This not only lets you see transactions in real time, but it can also warn you of any fraudulent use of the card and ensure you don't deplete your account balance before your next purchase.
Reloadable Visa card fees and charges
Reloadable Visa cards do come with fees, although they differ from card company to card company. These include any charges for using the card and associated services, such as getting cash from an ATM or replacing a lost card. The fees for monthly service, for example, can range from $0-10.
While not the only fees charged, these are the most common:
- Monthly maintenance fees
- Reload fees
- ATM withdrawal fees
- Balance inquiry fees
- Paper statement fees
- Declined card-to-card transfer fees
- Foreign transaction fees
- Card cancelation fees
- Inactivity fees
The best way to be sure of any fees before you sign up for a card is to check the card terms and conditions. A new rule made it a requirement for companies to add these details to the card packages in-store, but older card packaging may still be in stock. You can also reference the card issuer's website for complete details of what the card will cost.
These cards don't charge interest, so you won't have to worry about that. However, since they aren't traditional credit cards, you won't build your credit history, either.
How to avoid and reduce fees when using a reloadable Visa card
Almost all reloadable Visa cards come with fees, although each company charges differently for them. Be sure to read the terms and conditions before getting a card so that you know what you'll pay. This includes monthly service fees, which can eat up a significant chunk of your card's balance.
You can also use these savings tips:
- Order the card from the company instead of a third-party seller.
- Choose a card with a fee-free ATM network near you.
- Set up paycheck direct deposit to avoid reloading fees and limits.
You may also see savings from using the reloadable Visa card issuer's app or website to reload funds, set up bill pay services, and register your card for additional fraud protections.
Conclusion
Reloadable Visa cards offer a flexible, secure way to pay anywhere Visa cards are accepted, and loading them with funds is a simple process. However, not all cards are the same, and research can help you find the one that fits your lifestyle and budget.
