Cashpoints Global is a prepaid card account, not a checking or savings account

Cashpoints Global is a prepaid card — a different category from both checking and savings accounts. You load money onto the card in advance, then spend what you've loaded. It works like a gift card or a debit card, but the money comes from you, not from a bank account linked to your name and Social Security number.

The key difference: a checking account is a relationship with a bank where the bank holds your money and lets you write checks, use a debit card, and set up automatic payments. A savings account is also a bank relationship, designed for storing money and earning interest. Cashpoints Global is neither. It's a payment tool that sits between you and your money — you control the card, but the card itself is the account.

This matters because Cashpoints Global doesn't build a banking history the way a checking account does. Banks don't report prepaid card activity to credit bureaus, so using Cashpoints Global won't help you establish credit or show lenders you manage money responsibly. It also doesn't come with FDIC insurance, which protects money in bank accounts up to $250,000 if the bank fails.

Key Takeaways

  • Cashpoints Global is a prepaid card account where you load money first and spend it afterward, not a checking account linked to a bank.
  • Prepaid cards don't build banking history or credit, so they won't help you establish a relationship with a traditional bank.
  • Money on a prepaid card is not FDIC insured the way money in a bank checking or savings account is.
  • Cashpoints Global may charge monthly fees, reload fees, or ATM fees depending on the card type and how you use it.
  • If you're new to banking, a checking account at a credit union or community bank is usually a better first step than a prepaid card.

How prepaid cards work differently from checking accounts

When you open a checking account at a bank, the bank becomes the custodian of your money. You deposit funds, the bank holds them, and you access them through checks, a debit card, or transfers. The bank is responsible for keeping your money safe and following federal banking rules. If the bank fails, the FDIC (Federal Deposit Insurance Corporation) protects your money up to $250,000.

With Cashpoints Global, you're not depositing money into a bank account. Instead, you're loading money onto a card that functions as a stored-value account. The card issuer holds the money, but it's held differently than a bank deposit. This is why prepaid cards often come with fewer protections and more fees — they're not subject to the same regulations as bank accounts.

A checking account also gives you a banking relationship. The bank reports your account activity to credit bureaus (if you overdraft or miss payments), and responsible use builds your credit history. Prepaid cards don't report to credit bureaus at all, so they don't help you build credit or show future lenders that you manage money well.

Fees you might pay with Cashpoints Global

Prepaid cards typically charge fees that traditional checking accounts don't. Cashpoints Global may charge a monthly maintenance fee just for having the card active. There may be a fee to reload money onto the card, especially if you reload in person at a store or through certain methods. ATM withdrawals often cost money — sometimes $1 to $3 per withdrawal depending on which ATM you use.

Some prepaid cards charge fees for things that are free at a bank checking account: transferring money to another person, checking your balance by phone, or even closing the account. Before choosing Cashpoints Global, compare the fee schedule to what a local credit union or community bank charges for a basic checking account. Many banks offer free checking with no monthly fee, no ATM fees at their own machines, and no reload fees.

When a prepaid card might make sense

Cashpoints Global can be useful in specific situations. If you don't have a Social Security number or government ID yet, some prepaid cards are easier to open than a bank checking account. If you've had banking problems in the past — overdrafts, closed accounts, or ChexSystems issues — a prepaid card lets you use a card without a bank checking you against those records.

Prepaid cards can also work as a spending control tool. Because you can only spend what you've loaded, you can't overdraft or go into debt. Some people use them to set aside money for a specific purpose, like a vacation or a bill payment, without mixing it with everyday spending money.

However, these advantages come with real costs. The fees add up quickly, especially if you reload frequently or withdraw cash often. And you're not building the banking history that opens doors to better financial products later — credit cards, loans, or a mortgage.

Why a checking account might be better for you

If you're new to banking or returning after a gap, a checking account at a credit union or community bank is usually a stronger choice than Cashpoints Global. Credit unions often offer free checking with no monthly fee, no minimum balance, and no ATM fees at their own machines. Community banks frequently have similar offers, especially if you're in their service area.

A checking account builds your banking history. Banks report responsible account use to credit bureaus, which helps you build credit. When you later want a credit card, a car loan, or a mortgage, lenders will see that you've managed a bank account successfully. Prepaid cards don't create this record.

Checking accounts also come with FDIC protection, meaning your money is insured up to $250,000 if the bank fails. Prepaid cards don't have this protection. And checking accounts usually have better customer service and dispute resolution if something goes wrong — a bank is regulated by federal agencies and has to follow specific rules about how they handle your money.

How to choose between a prepaid card and a checking account

Start by asking yourself what you need the account for. If you want to build a banking history, establish credit, and have your money protected by federal insurance, a checking account is the right choice. If you need a payment tool quickly and don't have the documents a bank requires, a prepaid card is a temporary solution — but plan to move to a checking account once you can.

Call or visit a local credit union or community bank and ask about their basic checking account. Many have accounts specifically designed for people new to banking, with no monthly fee, no minimum balance, and no overdraft fees. Ask what documents you need to bring and whether they use ChexSystems (a checking account history report). If you've had problems with banks before, tell them — some banks specialize in second-chance accounts.

If you do open Cashpoints Global, treat it as a bridge, not a destination. Use it while you gather the documents you need for a checking account, then move your money to a bank. The sooner you have a checking account, the sooner you start building the financial history that matters.

Frequently Asked Questions

Can I use Cashpoints Global to pay bills automatically like a checking account?

Most prepaid cards don't support automatic bill payments the way checking accounts do. You can usually make one-time payments online or by phone, but setting up recurring payments is often not possible. This is another reason a checking account is more practical for everyday banking.

Will Cashpoints Global help me build credit?

No. Prepaid card activity is not reported to credit bureaus, so it won't help you build a credit history or credit score. Only credit products (credit cards, loans) and bank accounts (checking and savings) that are reported to bureaus help you build credit.

What happens to my money if Cashpoints Global shuts down?

Because prepaid cards are not FDIC insured, your money is at risk if the card issuer fails. With a bank checking account, your money is protected up to $250,000. This is a significant difference in safety.

Can I get a checking account if I've had problems with banks before?

Yes. Many credit unions and community banks offer second-chance checking accounts for people with ChexSystems records or past overdrafts. Call ahead and ask — don't assume you're disqualified. Some banks specialize in helping people rebuild their banking relationships.

How much does it cost to use Cashpoints Global compared to a checking account?

Cashpoints Global charges monthly fees, reload fees, and ATM fees that add up over time. Many checking accounts at credit unions and community banks charge nothing — no monthly fee, no ATM fees at their machines, no reload fees. Compare the actual costs before deciding.