5 Best Prepaid Debit Cards for Tax Refunds in 2024

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With tax season upon us, the IRS will be issuing tax refunds over the coming months. Direct deposit is the fastest way to receive your refund. For those who don’t use a bank account or prefer an alternative, consider a debit card to receive a refund via an electronic transfer. With this in mind, here are the best prepaid debit cards for tax refunds in 2024 (for 2023 tax year returns).

The Best Prepaid Debit Cards for Tax Refunds

Netspend Prepaid Visa Card

With the Netspend Visa Prepaid Card, you can get your refund faster than with a paper check. Once deposited, you can spend your refund with the Netspend card, transfer it to a bank account, or save it with Netspend’s high-yield savings account option. You can also set up online bill pay.

Walmart MoneyCard®

Walmart MoneyCard members can earn up to $75 cash back each year. The cashback includes 3% cash back on Walmart.com, 2% at Walmart fuel stations, and 1% cash back at Walmart stores.

PayPal Prepaid Mastercard®

For those who use PayPal, the PayPal Prepaid Mastercard is ideal for tax refunds. You can transfer money from your PayPal account to the prepaid card at no cost.

Western Union® Netspend® Mastercard® Prepaid Card

The advantage of the Western Union® Netspend® Mastercard® Prepaid Card is the ability to send and receive money via WU money transfers. The card also comes with the features you would expect, including online bill pay and online shopping.

FamZoo Prepaid Card

For families with children, the Famzoo Prepaid Card is ideal to have a teen’s tax refund deposited directly to their prepaid card. Note that FamZoo is one of the few prepaid cards designed for teens that allows direct deposit of a tax refund.

Alternative Options for Tax Refunds

As the FDIC has noted, prepaid debit cards are not the only option for tax refunds. Of course, there are always checking accounts. If you don’t want a traditional bank or prepaid card, there is one alternative worth considering.

Chime is not a prepaid card or a bank. Chime is a financial technology company. With Chime, you can get your tax refund deposited into your Chime Checking account. You’ll need the routing number and account number, which can be found in the Chime app under Settings > Account Information.

Chime is a financial technology company, not a bank. Banking services and debit card provided by The Bancorp Bank N.A. or Stride Bank, N.A.; Members FDIC.

^Early access to direct deposit funds depends on the timing of the submission of the payment file from the payer. We generally make these funds available on the day the payment file is received, which may be up to 2 days earlier than the scheduled payment date.

^~ Out-of-network ATM withdrawal fees may apply except at MoneyPass ATMs in a 7-Eleven, or any Allpoint or Visa Plus Alliance ATM.

⁺The Annual Percentage Yield (“APY”) for the Chime Savings Account is variable and may change at any time. The disclosed APY is accurate as of November 17, 2022. No minimum balance required. Must have $0.01 in savings to earn interest.

¹Sometimes instant transfers can be delayed. The recipient must use a valid debit card to claim funds. Once you are approved for a Chime Checking Account, see your issuing bank’s Deposit Account Agreement for full Pay Anyone Transfers details. Please see the back of your Chime debit card for your issuing bank. See Terms and Conditions

Why Use a Prepaid Card to Receive a Tax Refund?

Being able to receive a tax refund in the form of a direct deposit is great news for some. You just sit back and get your refund added to your account in about two weeks.

This is much better than waiting the six to eight weeks it takes for a paper check refund to arrive. Plus, you avoid the hassle of schlepping to your local bank to deposit the check, the cost of using a check-cashing service (if you don’t have a bank), or the worry of the check not making it to your mailbox safely.

For those who do not have a checking account, however, the benefits of direct deposit are elusive. According to the FDIC, about 33.5 million households in the U.S. are underbanked or unbanked. This is no small issue.

To make matters worse, those without bank accounts often turn to tax refund anticipation loans. These short-term loans come with extremely high-interest rates and are no better than a payday loan. While they do give you access to your refund immediately, the fees can eat into a substantial portion of it.

The best prepaid debit cards for tax refunds are an extremely low-cost alternative for those who don’t have the option of direct deposit and don’t want to wait for a check.

How to Set Up a Tax Refund Deposited to a Prepaid Card

Setting up direct deposit of a tax refund to a prepaid card takes just three simple steps. You can also use these steps to set up direct deposit to a checking account.

1. Get your card’s routing number – The routing number is a 9-digit number that identifies the FDIC-insured bank that holds the money for the prepaid card. The routing number appears on bank checks, but it’s also available in your prepaid card account. If you are unable to find it, call the prepaid card issuer and they will provide it to you.
2. Get your account number – The account number is specific to your prepaid debit card account. It will be available to you online or through the mobile app.
3. Add your routing and account number to your tax return – Once you have your routing and account number, you can enter into any tax preparation software or directly onto a paper tax return. For prepaid cards, you select “checking” as the account type

In addition to getting your refund faster, you can have your refund deposit in up to 3 different accounts. You can split your refund to go to up to 3 accounts using tax preparation software or IRS Form 8888 (allocation of refund).

Frequently Asked Questions (FAQ)

Final Thought on Using a Debit Card for Your Tax Refund

Whether you use a prepaid debit card or a checking account, direct deposit is the safest and fastest way to get your refund.

In contrast to the cards listed here, you should be skeptical of prepaid cards offered by tax preparers. The problem with these cards is that they often come with extremely high fees. For example, H&R Block offers the Emerald Prepaid MasterCard, but when you check the fee agreement, you’ll find increased fees vs. all of the cards on our list of the best prepaid debit cards for tax returns. The key is that whatever you decide, make sure to read the fine print and understand what fees you’ll have to pay.

Pro Tip: if you have a large refund due to you–and you want to avoid making such a large interest-free loan to Uncle Sam–talk to your employer about changing your W-4 form. You may be entitled to claim more allowances, which would reduce the amount of money withheld from your taxes.