While cash, debit card, and credit card still dominate the payment landscape, the latest trend is shifting towards more hi-tech options like Peer-to-Peer(P2P) payment methods with Smartphone apps. Today’s eCommerce platforms store, process, or transmit card data electronically. The point of sale systems in a retailer or an eCommerce website with a shopping cart falls under this category. More convenient and attractive solutions are coming out all the time, both from businesses you’ve heard of and others from startups. Let’s take a closer look to describe 7 Cash Apps That Accept Prepaid Cards.
So, with lots of options available, you can definitely find something that works best for you, whether you’re looking for a secure person-to-person payment cash apps or something that accept prepaid cards while online shopping. Also, you can take it with you to the store so you don’t have to pull out your card when it’s time to pay.
How to Use a Prepaid Cards on Cash Apps
Cash App is popular money exchanging platform but you can’t use a prepaid card to fund the Cash App account. You will need a bank account or accepted cards to do that. In order to add a bank account directly, go to the Cash App and tap on the icon that looks like a building. There, you will find the option “add bank”. Select that option and you will be asked to add a debit card. If you don’t have a debit card, select “No card?” option and a list of banks will appear. You have to visit your bank website in order to add your bank account.
Financial institutions issue prepaid cards (either credit or debit) and you have to pay the amount you want to use before using them. Prepaid credit cards have the same functions as standard credit cards except for the fact that they are secured with an initial collateral amount. Prepaid debit cards are an alternative to regulate bank cards with an exception; they can’t access your bank account directly. You have to put a certain amount of funds in the prepaid card before using the card.
These prepaid cards are for unbanked people or who have little credit history. So, if you happen to be in such a situation and you want to use a p2p payment system, then this article is intended to help you with that. Because some apps don’t accept prepaid cards and you may have to add your bank account. Other cash apps accept prepaid cards but they are different from each other and have their own features. Some of these platforms are discussed below-
Top 7 Best Cash Apps That Accept Prepaid Cards
The following payment cash apps that accept prepaid cards are rather reputable and provide consistent and transparent services. You can use a prepaid card to transfer money to some of these platforms and then send it to the recipient.
1. Square Cash App
Cash App is from Square cash which a very popular company is providing payment processing platforms to small businesses. You can send money or receive it from anyone by entering $cashtag, phone number, or scanning QR code using this platform. There is a customizable free debit card offered by Cash App and you will receive an instant discount by making payment using this card. Actually, it’s a Visa debit card and it can be used to make payments from Cash App balance.
If you want to experiment with small-scale investment, Cash App will provide the fastest and most convenient way to invest in the stock market and you can start with $1. Also, using the Cash App, you will be able to convert dollars to cryptocurrency instantly.
Payment option: ATM cards, PayPal, or business/prepaid debit cards are not accepted to transfer funds into the Cash Apps accounts. Most government-operated debit cards are approved. However, you can’t deposit funds to them. You have to use debit or credit cards from Visa, MasterCard, American Express, or Discover. Also, you can directly deposit paychecks, tax returns, and more to your Cash App balance using your bank account and routing number. You will need an activated Cash card for that and your fund will be deposited automatically and two days earlier than with many other banks.
2. Venmo
Venmo is a mobile-only p2p app featuring social components that allow the users to send messages and shows when you make a transaction using the app. Thus you will be able to remember those moments when you split a dinner with your friends or send a gift to someone. If you are a private person this feature is not for you.
Founded in 2009, it was aimed to make money transactions on SMS platforms. Today, Venmo is accepted by thousands of merchants and brands. To see the list of those merchants, you have to install the Venmo app on your smartphone. After that, when you purchase something online, you will most likely find a Venmo or PayPal payment option, if that merchant accepts the Venmo platform. It will be worthwhile to mention that PayPal has bought Venmo. You can buy something using Venmo and split the price later with your peers.
Venmo utilizes encryption to protect your bank or credit card data. Also, an eligible purchase from an authorized merchant is covered by a payment protection plan where you can temporarily hold payment in your Venmo account for 30 days.
Payment option: Your Venmo account can be recharged by debit card, prepaid card, bank account, etc., and receive/withdraw money for free of charge. It would take 1-3 days to complete the fund transfer.
3. Zelle
Zelle is an electronic fund transfer company that was launched in June 2017. This digital payment network operates only in the US and you must have a bank account in the US bank to use Zelle. This instant payment service is owned by Bank of America, BB&T, Capital One, JPMorgan Chase, PNC Bank, US Bank, and Wells Fargo. You will find the Zelle interface in the banking app of the hundreds of partner financial institutions of Zelle. This growing list of partners includes American Bank, American First Credit Union, Chase, and other leaders in the financial industry.
If your bank doesn’t offer Zelle then you have to download the app to send money. You will also need the email address or US mobile number of the recipient. The fund will be transferred to the bank account within minutes if that person is enrolled with Zelle. If not, a notification explaining how to receive the money will be sent. It’s fast, free, and secure.
Payment option: Zelle only accepts debit or credit cards from Visa or MasterCard. The business debit cards, credit cards, cards linked to international accounts, gift cards, or prepaid cards from the companies outside of Zelle Network are rejected.
4. WorldRemit
WorldRemit is one of those digital money exchanging systems which utilizes innovative and cutting edge technologies to bypass the traditional wire transfer and provide cost-effective services relating to international fund transfer. You can send money to over 140 countries in 90 currencies from the USA. Traditional wire transfers conducted by the banks charge a large amount fee and the process is lengthy. Worldremit’s charge varies with destination countries and other factors but in general, it’s 48% cheaper than wire transfer and 28% cheaper than other international money exchange services like Western Union.
WorldRemit is primarily focused on mobile to mobile money transfer for people who have limited access to traditional banking systems and it has no physical office or agents. If your recipient prefers cash, it can be collected instantly. But bank deposits will take some time.
Payment option: For funding the money you want to transfer using Worldremit, you can utilize debit or credit cards from Visa, MasterCard, and Maestro. These cash apps also accept prepaid cards for this purpose.
5. PayPal
PayPal is one of the most versatile eCommerce services which facilitate international fund transfer as well as the payment processor for online vendors, auction sites, and other commercial users. In fact, it was the first p2p payment alternative in the 90s. If the recipient has a PayPal account you can transfer money from your bank account, prepaid cards, credit card, or debit card which is linked to your PayPal account.
It’s possible to send money to anyone who has an email address or mobile number. You can either pay for a service/item or send money to friends/family. If you want to transfer funds internationally, use Xoom which is now a sister concern of PayPal.
Payment option: PayPal will accept payment from your PayPal account, PayPal cash account, or your personal bank account free of charge. In the case of your bank account, it may take 1-3 business days to clear the transfer process where it is done instantly for PayPal accounts.
6. Facebook Messenger
Social media titan Facebook brings Facebook Pay which can be accessed by Facebook account, Messenger, or Instagram. This service is limited to some selected countries. Since a majority of the total population use Facebook, you can reach and send money to your friends or family members using this service. There is no additional fee for sending or receiving money. You will be able to review and access your payment history from multiple apps.
To use this service for exchanging money, you have to be at least 18 years old. It’s very easy to use. The recipient has to add a debit card or PayPal account to receive money. If you send money to someone, they will get a notification and the fund will be deposited in the account linked to the debit card or PayPal account. But it may need 1 to 5 business days for the bank to process the payment.
Payment option: Accepted payment methods for Facebook pay is limited to US debit cards from Visa or Mastercard. PayPal accounts are allowed, too. But, prepaid business debit cards are not acceptable as a source of payment.
7. Google Pay
Like any other service from the tech giant Google, Google Pay is a free digital money transaction service. This is a very simple, easy-to-use, and secure online contactless payment system. Your actual card number is never used; an encrypted number is used instead. Besides, if you pay for your purchases using Google Pay, you will get lots of rewards and cashback offers. You can also add gift cards and loyalty points to Google Pay.
To send money via Google Pay, the recipient doesn’t need an account on the platform. Also, you can use any devices desktop, tablet, or phone. You can schedule your money transfer in advance and it will be sent directly to the bank account of the intended person as a default payment method.
Payment option: You can add a US bank account directly on Google pay for the payment. Similarly, other payment options and charges vary with locations. It accepts debit or credit cards from most of the major US banks and financial institutions. However, a prepaid debit card is not allowed to send money. You can also integrate your PayPal account, add gift cards, and reward points from stores with Google Pay.
How Should I Choose The Right Cash Apps That Accept Prepaid Cards?
Since a variety of money-sending apps are providing their services, you should choose a service based on your requirements. These platforms have their own strategies and focus points. For example, if you need to split restaurant bills or bar tabs with your friends then Venmo is the platform you’re looking for. When it comes to transferring funds internationally, WorldRemit or TransferWise is the front runner. PayPal will greatly help you to accept money from your client or send payment to a contractor internationally or domestically for maybe a freelance job or something else.
The payment method is also important. Some of these platforms are rather liberal in this issue. PayPal will accept not only prepaid cards but also gift cards. There are also charges involved while making transactions using these platforms. If you have options, you should explore the lowest rate of charges and fees. Also, it may be beneficial to make a large transaction or break that into small portions and transfer it multiple times depending on the fees.
Frequently Asked Questions
Does circle pay accept prepaid cards?
Unfortunately, no. Circle pay only accepts the UK, US or European issued a debit card from Visa or MasterCard, European or UK bank account, and Visa/MasterCard credit card issued from the UK or Europe.
Does Google Wallet accept prepaid cards?
Although Google Wallet accepts a wide range of payment methods like gift cards and PayPal accounts, prepaid cards are not one of them.
Does a cash apps accept prepaid cards?
Majority of cash apps don’t accept prepaid cards. But you can use a debit or credit card to pay the Cash App. You can also link your bank account directly.
Which payment app is best?
PayPal app can be considered one of the best payment apps. In fact, PayPal is the first of its kind and has paved the way for others. PayPal offers lots of functionality and cross-border services. Although the customer care service is limited and charges a higher amount of fees compared to other platforms, the versatility of this platform is hard to beat.
Which payment app is most secure?
Cash App is the most secure payment app as you can cancel your payment if needed. And this platform is encrypted, too.
Is Google Pay safer than a credit card?
A contactless payment system like Google pay encrypts data from your credit card and stores it in a secure server. You don’t have to show your card during purchase. If you use such a system and you are protected against fraud.
Closing Thoughts
Digital payment systems offer unprecedented conveniences and diversities and for that, they have proliferated over the past few years. But no system is completely impervious to hack. There are also tacit issues that need revising before engaging them.
