How to transfer money from a prepaid card to a bank account

There are many potential reasons someone may use prepaid debit cards:

• Budgeting. By loading a specific amount of money onto a card, individuals can make payments strictly set within a specific budget.
• Security. Prepaid cards are not directly linked to a bank account, offering a layer of security in case the card is lost or stolen, as any thieves only have access to any remaining funds that were pre-loaded and not an entire financial account.
• Convenience. Prepaid cards can be used online and in person and may be able to be reloaded several times. Some prepaid cards also allow individuals to withdraw cash from ATMs.
• Gifts. Prepaid cards may make for a quick and easy gift.

While prepaid cards offer a variety of uses, some people may want to transfer money from their prepaid card to a bank or financial account to use the funds in other ways. This guide will explore whether it’s possible to transfer money from prepaid cards to another financial account and reasons someone may want to do so.

Can someone transfer money from a prepaid card to a bank account?

Depending on the card issuer, it may be possible to transfer money from a prepaid card to a bank account or other financial account. While the ability to do so will depend on the prepaid card and the account being transferred to, here’s a general breakdown of how it may be done:

1. Check the card balance and details. Start by checking the balance on the prepaid card to determine how much money can be transferred. Check to see whether the card allows for transfers and if there are fees involved.
2. Collect the receiving account information. If the prepaid card allows transfers, gather the account number and routing number for the account that will receive the funds.
3. Follow card guidelines or utilize prepaid card’s digital platforms. Transferring money from a prepaid card to a bank account may vary based on card terms. Some may offer guidelines on the transferring process or require contact with a representative. Prepaid card issuers also often provide associated apps or online platforms that can streamline and initiate the transfer process.
4. Locate the transfer option. If using an associated app or online portal, this could be labeled as "Transfer," "Move Money," "Send Money," or a similar option. Enter the receiving account information and the amount to transfer.
5. Confirm transfer: Review and confirm the transfer details. This may involve clicking a "Confirm" or "Authorize" button.
6. Wait for processing: The transfer may take several days to be completed, depending on the receiving account provider's processing times. Individuals can periodically check both their bank balance and the prepaid card's balance to ensure the money has been moved successfully.

Potential reasons to transfer money from a prepaid card

There are various potential scenarios where people may want to transfer money from a prepaid card to a bank account. Here are a few examples:

• Consolidate funds. Transferring money from a prepaid card to another financial account may allow individuals to consolidate their funds in one place.
• Earn interest. Certain accounts, such as savings accounts, often offer the opportunity to earn interest on deposited funds.
• Avoid card expiry. Some prepaid cards have expiration dates, so transferring the remaining balance to a bank account may help ensure the money isn't lost.
• Make payments. Some retailers or businesses may not allow payments through a prepaid card, so transferring the balance to a bank account may be necessary.
• Digital wallets. Someone may want to take the funds from a prepaid card and transfer money to a digital wallet. However, they may first need to transfer the money to a bank account.