Guess asked in Business & FinanceCredit · 7 years ago

How much money is a prepaid card?

The kind of cards that you can buy at Walmart, or CVS and you just put money on them wherever you buy them. But how much are they?? And can you reload money onto it? Like, can you use it over and over again??

Thanks!!

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  • 7 years ago
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    It depends on the card. I used to work at Target, so I'll give you the specifics about the prepaid cards that we had, as they are the ones I'm most familiar with.

    There are two main kinds: one-time load (often given as gifts) or reloadable indefinitely.

    The one-time use cards came as either Visa or American Express based on the purchaser's preference, and came in denominations of $25, $50, or $100. I know at some stores, the face value is something you can designate, much like a gift card to a store. The card is, essentially, blank until you pay whatever amount you want for it.

    However, these single-load cards come with purchase fees. $25 dollar cards cost $29, $50 cards cost $56, and $100 cards cost $108. Once the card is used up, it's empty and can't be reloaded.

    I once bought a friend a set-your-own price Visa gift card, and the purchase fee was 10% of face value. So I paid $33 and he got a $30 gift card.

    Now, the reloadable cards are somewhat similar, but a bit different. The ones that Target sells are American Express, and you pay whatever price you want plus $3. The $3 is the purchase fee. You can reload at any time for any amount, as long as you pay an additional $3 fee. These were less popular because people often used prepaid cards as gifts, and the reloadable ones had to go through a registration process because it *belongs* to the purchases in a way that the one-use ones did not.

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