What Advance Plus Banking Actually Is

Advance Plus Banking is not a checking account — it is a prepaid card account that works differently from a traditional checking account in important ways. You load money onto the card yourself, and you can use it to make purchases and withdraw cash, but the bank does not hold a deposit account for you the way it does with a checking account.

Advance Plus Banking is offered through various banks and financial service providers, most commonly through partnerships with retailers or payroll processors. The card itself looks and functions like a debit card, but the underlying account structure is prepaid rather than deposit-based. This means you are spending money you have already put on the card, not drawing from a bank account that the institution maintains for you.

Key Takeaways

  • Advance Plus Banking is a prepaid card product, not a checking account, because you load money onto it yourself rather than the bank holding a deposit account.
  • You can use the card to make purchases and withdraw cash at ATMs, but you do not receive the protections that come with a traditional checking account.
  • Prepaid cards often charge fees for loading money, withdrawals, inactivity, and customer service calls that checking accounts do not charge.
  • If you need a checking account for direct deposit, check writing, or overdraft protection, a prepaid card will not serve those purposes.

How Prepaid Cards Differ From Checking Accounts

A checking account is a deposit account held at a bank or credit union. The institution accepts your money, holds it, and lets you withdraw it by writing checks, using a debit card, or making transfers. The money is yours, and the bank is responsible for keeping it safe. Prepaid cards work the opposite way: you buy the card, load money onto it, and then spend that balance down.

The practical difference matters most when something goes wrong. If someone steals your debit card linked to a checking account, federal law limits your liability to $50 if you report it quickly. If someone uses your prepaid card without permission, the protections depend on the card issuer's own policy — and many offer less protection than federal law requires for checking accounts. Similarly, if the bank holding your checking account fails, the Federal Deposit Insurance Corporation (FDIC) insures your balance up to $250,000. Prepaid card balances are not FDIC-insured in the same way, though some issuers do place funds in FDIC-insured accounts.

Fees You Will Encounter With Prepaid Cards

Prepaid cards charge fees that traditional checking accounts often do not. These vary by provider, but common ones include monthly maintenance fees (usually $5 to $15), fees to load money onto the card ($1 to $5 per transaction), ATM withdrawal fees ($1 to $3 per withdrawal), and fees for customer service calls or balance inquiries. Some cards charge inactivity fees if you do not use the card for a set period.

A basic checking account at a community bank or credit union typically has no monthly fee and no charge to withdraw cash at the institution's own ATMs. Even checking accounts that charge a monthly fee usually waive it if you maintain a minimum balance or set up direct deposit. Over a year, the cost difference between a prepaid card and a checking account can be substantial, especially if you withdraw cash frequently.

When Advance Plus Banking Might Make Sense

Prepaid cards can be useful in specific situations. If you have had banking problems in the past — a history of overdrafts, unpaid fees, or accounts closed by the bank — some prepaid card issuers will accept you when traditional banks will not. You also cannot overdraft a prepaid card, which means you cannot spend money you do not have and face overdraft fees.

Prepaid cards can also work as a way to manage spending if you struggle with budgeting. By loading only the amount you plan to spend, you create a hard limit. Some employers and government programs use prepaid cards to deliver wages or benefits, in which case you may not have a choice of account type.

What You Cannot Do With a Prepaid Card

Prepaid cards do not work for everything a checking account does. You cannot write checks with a prepaid card. You cannot set up automatic bill payments the way you can with a checking account — some cards allow bill pay through their app or website, but the feature is not universal and may charge a fee. Direct deposit, which many employers use to pay wages, may not be available on all prepaid cards, though many do support it.

If you need to prove you have a bank account for a loan process, rental process, or other purpose, a prepaid card will not work. Landlords and lenders want to see a checking or savings account because it shows you have an established relationship with a financial institution and a history of managing money there.

How to Find an Actual Checking Account Instead

If you want a real checking account but have been turned down in the past, several options exist. Credit unions often have lower barriers to opening an account than banks and may overlook past banking problems. Community banks in your area may also be more flexible than large national banks. Some banks offer second-chance checking accounts specifically for people with banking history issues — these may have higher fees or require a deposit, but they are still checking accounts with the protections that come with them.

You can also look for banks that use alternative verification systems instead of ChexSystems, the database banks use to check your banking history. Some online banks and smaller institutions do not use ChexSystems and may be willing to open an account for you. The Community Reinvestment Act requires banks to serve their communities, which means many have programs for people new to banking or returning after a gap.

Frequently Asked Questions

Can I get direct deposit on an Advance Plus card?

Some Advance Plus cards do support direct deposit, but not all. Check with the specific card issuer before opening an account. If direct deposit is important to you, a traditional checking account is more reliable because direct deposit is standard on virtually all checking accounts.

What happens to my money if the card issuer goes out of business?

It depends on how the issuer holds the funds. Some prepaid card issuers place customer money in FDIC-insured bank accounts, which would protect your balance up to $250,000. Others do not. Check the card's terms and conditions or call customer service to find out. A checking account at an FDIC-insured bank guarantees this protection.

Can I use an Advance Plus card to build credit?

No. Prepaid cards do not report to credit bureaus, so using one does not build your credit history. A checking account also does not build credit on its own, but it can be a stepping stone to a credit-building product like a secured credit card or credit-builder loan.

Is there a way to avoid the fees on a prepaid card?

Some prepaid cards have lower fee structures than others, and a few waive certain fees if you meet conditions like setting up direct deposit or maintaining a minimum balance. However, even the cheapest prepaid card usually costs more over time than a free checking account at a bank or credit union.

What if I was denied a checking account because of ChexSystems?

You have the right to see what ChexSystems has on file about you. You can request your report for free at chexsystems.com. If there are errors, you can dispute them. You can also look for banks that do not use ChexSystems, or ask about second-chance checking accounts designed for people in your situation.