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How To Transfer Money From Prepaid Card To Bank Account [A Detailed Step-By-Step Guide]

how to transfer money from prepaid card to bank account

Technological advancement has brought banking to an online platform, as work that could have been done manually at a bank location is now done online through mobile apps or bank websites. 

A prepaid card is a payment card that you load with money before you can use it. It's like a gift card or a pay-as-you-go phone card, but you can use it for more than just making purchases.

You can also use it to withdraw cash at ATMs, pay bills online, and transfer money to other accounts. Prepaid cards are not linked to a bank account, so you can't overspend on them. They're a good option for people who want to control their spending or who don't have a bank account.

In this article, we will guide you on how to transfer money from a prepaid card to a bank account.

Can I Transfer Money From Prepaid Card To Bank Account?

Yes, you can transfer money from a prepaid card to a bank account, but not every prepaid card supports bank transfers.

Generally, there are two broad categories:

  • Reloadable prepaid debit cards: These may offer ACH transfers, bank transfers, or other withdrawal options.
  • Prepaid gift cards: These commonly have restrictions and may not allow you to transfer the balance directly to a bank account.

Before attempting a transfer, check the card's official website or mobile app for options such as Transfer Money, Bank Transfer, ACH Transfer, Withdraw, Send Money, or Move Money.

How to Transfer Money From Prepaid Card To Bank Account

Transferring money from prepaid can be a very straightforward process if your prepaid or your bank accepts such transfers.

Below are some of the methods used to transfer money from a prepaid card to a bank account:

Method 1: Transfer Money Directly From the Prepaid Card

If your prepaid card issuer supports bank transfers (such as Netspend Prepaid Visa / Mastercard), this is usually the simplest method.

Step 1: Log in to your prepaid card account

Open the card issuer's official website or mobile application.

Sign in using your username, email address, phone number, PIN, or other required credentials.

Step 2: Look for a transfer option

Depending on the issuer, the option may be called:

  • Transfer Money
  • Bank Transfer
  • Send Money
  • Withdraw Funds
  • Move Money
  • ACH Transfer

Select the relevant option.

Step 3: Add your bank account

If you have never transferred money before, you may need to add your bank account.

You could be asked for:

  • Bank name
  • Account number
  • Routing number, where applicable
  • Account type
  • Name on the bank account

Make sure the information is correct before continuing.

Step 4: Verify the bank account.

Some prepaid-card providers require you to verify the bank account before allowing transfers.

Verification could involve:

  • Small test deposits
  • Confirmation through your banking credentials
  • Email or SMS verification
  • Additional identity verification.

Follow the issuer's instructions.

Step 5: Enter the amount.

Enter how much you want to transfer.

Check your available balance carefully because some prepaid cards may deduct:

  • Transfer fees
  • Monthly fees
  • Other applicable charges

For example, if you have $500 but a $5 transfer fee applies, you may need to transfer $495 or less.

Step 6: Review the transaction.

Before submitting the transfer, check:

  • Bank account number
  • Transfer amount
  • Fees
  • Expected delivery date

Step 7: Confirm the transfer.

Submit the transaction.

Depending on the provider, the money may arrive in your bank account immediately, within one business day, or after several business days.

Method 2: Transfer the Prepaid Card Balance Through a Supported Payment App

Some prepaid cards can be linked to popular payment and money-transfer services such as PayPal, Venmo, Cash App, and Apple Cash. However, compatibility varies by card issuer, country, card type, and the particular service.

PayPal:

PayPal allows users to add eligible prepaid cards, including prepaid Visa, Mastercard, Discover, Diners Club, and American Express cards.

After adding a prepaid card, however, PayPal may not necessarily allow the card balance to be withdrawn to a bank account. The card may simply be available as a payment method for purchases or other eligible transactions.

Venmo

Venmo explicitly states that cards registered in the user's name, including prepaid cards, can be added as payment methods. Venmo supports Visa, Mastercard, Discover, and American Express cards, although individual cards can still be declined by Venmo or the card issuer.

This means a compatible prepaid card may be linked to Venmo, but linking the card does not automatically mean that its balance can be converted into a Venmo balance or withdrawn to a bank account.

The general process is

  • Open the supported payment app.
  • Go to your wallet or payment method section.
  • Add the prepaid card.
  • Complete any required verification.
  • Check whether the card is eligible for transfers.
  • If supported, move the funds according to the app's available options.
  • Withdraw the balance to your linked bank account.

However, simply adding a prepaid card to a payment app does not guarantee that you can transfer the balance to your bank account.

Some services allow prepaid cards to be used for purchases but block them from funding transfers or cash withdrawals.

Method 3: Withdraw Cash From an ATM and Deposit It Into Your Bank

If your prepaid card allows ATM withdrawals, you may be able to use a two-step approach.

Step 1: Find an eligible ATM.

Check whether your prepaid card supports ATM withdrawals and which ATM networks can be used.

On the back of the card, look for ATM/payment-network logos printed on the front or back of the card. Depending on the card, you may see logos such as:

  • Visa / PLUS
  • Mastercard / Cirrus
  • Maestro
  • STAR
  • PULSE
  • LINK
  • Interac
  • Other regional ATM networks

The network logos can indicate which ATM network may accept the card.

Step 2: Withdraw the money

Insert your prepaid card and enter your PIN.

Select Withdrawal and choose the amount you want to withdraw.

Step 3: Take the cash

Collect the cash and receipt. Remember that ATM withdrawal fees may apply.

Step 4: Deposit the cash into your bank account

You can then deposit the cash into your bank account through:

  • A bank branch
  • An eligible ATM
  • Another supported cash-deposit method

This method can work when a direct prepaid-card-to-bank transfer isn't available.

Method 4: Request a Check or Other Withdrawal From the Card Issuer

Some prepaid programs provide alternative ways to access the remaining balance.

Depending on the provider, you may be able to request:

  • A check
  • ACH withdrawal
  • Account closure payout
  • Other balance-redemption options

Contact the card issuer to determine whether this is available.

If a check is issued, you can deposit it into your bank account.

How Do I Withdraw Money From a Prepaid Card?

You can withdraw money from a prepaid card using multiple methods, including ATMs, cash back at retail stores, and bank-to-bank transfers. See details below:

Withdrawing money from ATMs:

  1. Locate an ATM: Find an ATM that supports your prepaid card network (e.g., Visa, Mastercard).
  2. Insert your prepaid card: Insert your prepaid card into the ATM slot and follow the on-screen instructions.
  3. Enter your PIN: Enter your four-digit PIN to access your prepaid card account.
  4. Select the "Withdraw" option: Choose the "Withdraw" option from the main menu.
  5. Enter the desired withdrawal amount: Enter the amount of cash you want to withdraw, ensuring it doesn't exceed your available balance or daily withdrawal limit.
  6. Confirm and collect your cash. Confirm the transaction and collect your cash from the ATM dispenser.

Cash Back at Retail Stores:

  1. Make a purchase at a participating retailer: Select a retail store that offers cash back with prepaid card purchases.
  2. Inform the cashier: Inform the cashier that you would like cash back with your prepaid card purchase.
  3. Enter your desired cashback amount: Specify the amount of cash back you want, typically limited to a maximum amount per transaction.
  4. Complete the purchase: Complete your purchase as usual, and the cashier will provide you with the cash back amount along with your receipt.

Bank-to-Bank Transfers:

Check transfer eligibility: Ensure your prepaid card allows transfers to bank accounts. Some prepaid cards may restrict transfers or charge fees.

After linking your routing and account number to your Prepaid card account, you can transfer money from your prepaid card to the bank.

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Conclusion:

A prepaid card is a payment card that you load with money before you can use it. It's like a gift card or a pay-as-you-go phone card, but you can use it for more than just making purchases.

You can also use it to withdraw cash at ATMs, pay bills online, and transfer money to other accounts. Prepaid cards are not linked to a bank account, so you can't overspend on them. They're a good option for people who want to control their spending or who don't have a bank account.

To transfer money from a prepaid card to a bank account, you have to link up your prepaid card to your bank account, or in case your card does not support bank transfers, you have to utilize the service of a third-party provider.

You can withdraw money from your prepaid account through an ATM, cash back at retail stores, or initiate a bank-to-bank transfer.

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