A credit card is a payment tool that allows you to borrow from your issuer. You can get credit cards from banks and credit unions. Like other payment cards such as debit and prepaid, credit cards have card numbers, expiration dates, and the CVV. The details are crucial when making online payments. Although credit cards are borrowing tools, you can add money to them. Later on, I will discuss how to transfer money from a credit card to a prepaid card online.
As indicated above, a prepaid debit card is also a payment tool that allows you to top up and use it to buy goods and services. It comes with a card number, the expiry date, and the security code (CVV) to help in online payments. You have to top up to use it, and once the funds are depleted, you have to recharge to continue using it.
For your information, prepaid debit cards do not necessarily link to a bank account. However, you can link to a bank or credit union account when the need arises. That allows you to fund your transactions with your bank account. If you link your card to a bank account, the card begins operating like a debit card, whereby you can spend your balance. You can add one or more bank accounts to your card.
How to get a prepaid card?
Anyone can get a prepaid card so long as they are 18 years old and have the proper documentation. These include an Identification document and the Social Security Number. You also require a US phone number and an email address.
If you have the suitable materials, you can then hover over various prepaid card websites and see the available ones. We have so many of them only that they differ with their terms and conditions. You should check the following things when opening an account.
- Monthly fees
- Annual fees
- Withdrawal fees
- Overdraft fees
- Minimum balance requirements
After seeing the right one, you then apply. Most prepaid cards allow you to open your account online and receive it at your place. That means you have to enter your details online plus upload some documents for verification.
Netspend is among some of the best-prepaid cards you can open online. Others like Walmart MoneyCard allow you to apply at a store or online. Whichever way, you get a card of which you should activate and recharge to use it. You can use a credit card as we are about to see to recharge your account. You transfer funds the same way you transfer money from a credit card to a debit card.
How do you get a credit card?
You can get one from a bank or credit union. We have two types as we speak. We have secured and unsecured ones. The secured ones are easy to get as you only need to deposit money to act as security, and you are good to go. They are suitable for people with no borrowing history or those with bad scores and want to rebuild their reputation with lending companies.
Unsecured credit cards require you to have a borrowing history. That refers to records about your past borrowings. It means you have scores that are essential when applying for one. You can have bad, fair, good, or excellent score credit cards. The better your scores, the lower your interest rate and the higher your limit, and vice versa.
Once you decide the one you want, you apply and then activate it via mail or online application. At physical branches, you may get the card as soon as you apply or several days later, depending on the issuer. Secured ones require one to deposit the security money before getting them. You can use cash or transfer from a bank account to your card account.
How to transfer money from credit card to prepaid card online?
Credit cards allow you to transfer money from prepaid card online. Here, you need to send money with the routing and account number of the prepaid card. Remember that prepaid cards are taken as independent financial institutions and thus have routing and account numbers.
Credit card issuers allow you to manage them online using a unique application. That means you can view your remaining limit, see your scores, as well as previous transaction activities. When moving money online, you can navigate to the transfer money button, then enter the necessary information for the prepaid card.
You then enter the amount to transfer and authorize with your Touch ID, password, Face Unlock, or PIN. Remember that you can use ACH or wire transfer when using the routing and account numbers, whichever is applicable.
Alternatively, you can use money transfer companies such as MoneyGram, Western Union, and Wise, among others. You just use the credit cards as a source of funds when recharging your prepaid card. The money transfer companies also allow you to send money from credit card to bank account instantly. However, you have to part with transaction fees.
Can you use a credit card on Zelle?
Zelle is a money transfer service that allows you to move money instantly across banks. Currently, Zelle does not support credit cards to fund transfers. You can use a bank or debit card. Maybe you can move money from your credit card to Zelle indirectly by moving funds to a bank account and then using Zelle to transfer to the target account.
How do you transfer funds from a credit card to a bank account?
A credit card allows you to move money to a bank account. However, the transfer attracts high fees since that is a cash advance. The following are ways you can move money to a bank account.
1) Request a convenience check
The issuers can give you a convenience check to deposit in the target account to get money. The checks work like regular checks, although they differ with the fees involved. And by the way, you can use the convenience check to transfer money to someone else’s credit card. They just need to deposit the check online using an app to load money in their cards and pay for their debts or to pay a security deposit in case of a secured one
2) Transfer over the counter
You can transfer money over the counter at an institution that accepts your credit card service provider, and then deposit it to your bank account. As I have mentioned, the transfer attracts fees.
3) Transfer money at an ATM
ATMs machines allow you to move funds to a bank account. You can first withdraw money from your credit card then deposit it using the ATM deposit slot. Of course, you need to fill in a deposit slip, put the funds in an envelope together with the slip, and then drop it in the machine.
Can you pay a credit card debt with another credit card?
It is possible to pay your debt with another one when you apply for a balance transfer credit card. The card usually has a low-interest rate compared to the current one. Usually, balance transfer cards give you a 0% interest rate for a certain period, normally up to two years. You then take advantage to repay your debt.
If you transfer balance from one credit card to another, the balance transfer credit card issuer requests the card details of the old card, then pays off the debt and then transfers it to the new card. You then repay the debt with zero interest rate within the specified period.
You can also make purchases with the balance transfer card, but you should ensure that you get an all-around one, i.e., the one with 0% interest on both purchases and repayments. Some balance transfer cards can charge interest if you use them for purchases and so you need to be careful on that issue.
Do prepaid cards allow you to use a mobile app?
Most prepaid cards have mobile apps that you can use to manage your card online. Here, you can view your statement, your balances and transact online. By the way, prepaid cards allow you to send money to others using the phone number, email address, or username of the recipient.
It is also within the app where you can transfer funds to bank accounts. Again, when linking your account with a bank account, you usually do that online or over an app.
Is it secure to send money online?
Transacting online is secure for most online financial companies since they have put adequate security measures to prevent fraud. Most financial companies ensure data encryption whereby criminals cannot intercept online communication between the account holders and the institutions.
Other institutions have included two-way authentication whereby you have to receive a code in your phone before completing any transaction. Above all, you have to log into your mobile app or online site using a password, passphrase, Touch ID, Face Unlock, or PIN.
Bottom line
Credit cards are payment tools that allow you to borrow from your issuer. The card issuers include banks and credit unions. Depending on your personal preferences or borrowing history, you can get a secured or an unsecured credit card. Credit cards allow you to carry out numerous transactions, including sending money to other cards. You can send money from your credit card to a prepaid card online.
