How prepaid cards work as a refund destination
The IRS will deposit your tax refund directly into a prepaid card if the card has a routing number and account number — the same way it deposits into a bank account. You provide those numbers on your tax return, and the money lands in the card's balance within the standard refund timeline, usually 21 days or less if you file electronically.
A prepaid card is not a bank account. It is a card loaded with money upfront, similar to a gift card but designed for everyday spending. The card issuer holds the money, and you spend it by swiping the card at stores, online, or at ATMs. Because prepaid cards are not bank accounts, they do not offer the same protections — but they do work as a refund destination.
The main reason people use prepaid cards for refunds is speed. If you do not have a bank account, a prepaid card gets you the money without waiting to open one. If you have a card already, you avoid the step of setting up direct deposit to a new account.
Key Takeaways
- Any prepaid card with a routing number and account number can receive your tax refund, whether it is a general-purpose card, payroll card, or card from a tax preparation company.
- The IRS deposits refunds to prepaid cards on the same timeline as bank accounts — usually within 21 days of filing electronically.
- Prepaid cards charge monthly fees, ATM fees, and sometimes transaction fees, so compare costs before choosing one as your refund destination.
- If your prepaid card account closes or the card is lost before the refund arrives, the IRS will mail a check to your address on file instead.
- Tax preparation software and tax preparation companies often offer prepaid cards with refund features built in, but you can use any prepaid card with routing and account numbers.
Prepaid cards that accept tax refunds
Most prepaid cards can receive a tax refund as long as they have a routing number and account number to provide on your return. This includes general-purpose prepaid cards (cards you load with your own money), payroll cards (cards your employer loads with your paycheck), and cards issued by tax preparation companies.
Tax preparation companies like H&R Block, TurboTax, and Jackson Hewitt offer prepaid cards specifically designed to receive refunds quickly. These cards often waive the first month's fee or offer a small bonus if you use them for your refund. The trade-off is that these cards typically charge monthly maintenance fees and ATM fees once the promotional period ends.
General-purpose prepaid cards from companies like NetSpend, Serve, or Chime also work for refunds. Some of these cards charge no monthly fee if you meet a minimum monthly deposit or direct deposit requirement — which a tax refund counts as. Others charge a flat monthly fee regardless of activity.
What information you need to provide on your return
To direct your refund to a prepaid card, you need the card's routing number and account number. These numbers appear on the card itself or in your account information online. The routing number identifies the financial institution that processes the card, and the account number identifies your specific card account.
You enter these numbers in the direct deposit section of your tax return, the same place you would enter bank account information. If you are filing on paper, you write them on the form. If you are filing electronically through tax software or a tax preparer, you type them into the online form.
Double-check both numbers before submitting your return. If either number is wrong, the IRS cannot deposit the refund and will mail a check instead, which delays your money by several weeks.
Fees and costs to compare
Prepaid cards are not free to use. The costs vary widely depending on the card and the issuer. Before you choose a card for your refund, understand what you will pay.
Monthly maintenance fees range from zero to around $10 per month, depending on the card. Some cards waive the fee if you load money directly from your employer or if you make a certain number of transactions per month. ATM withdrawals often cost $1 to $3 per transaction if you use an out-of-network ATM, though most cards offer a set number of free in-network withdrawals. Some cards charge fees for balance inquiries, customer service calls, or inactivity.
Tax refund prepaid cards often advertise low or zero fees for the first month or two, then switch to standard fees. Read the fee schedule before you open the account so you know what you will owe after the promotional period ends. If you plan to spend the refund quickly and close the card, promotional fees may not matter. If you plan to keep the card open, monthly fees add up.
What happens if your card closes before the refund arrives
If your prepaid card account closes or the card is lost or stolen before your refund deposits, the IRS cannot put the money into that account. Instead, the IRS will mail a check to the address you listed on your tax return.
This is why it is important to keep your prepaid card account open from the time you file until your refund arrives. If you know your card will close soon, consider using a different refund destination — a bank account, a savings account, or a different prepaid card you plan to keep open.
If your card is lost or stolen, contact the card issuer when ready to report it. Ask whether the account will remain open and whether the refund can still deposit. Some issuers will keep the account open for incoming direct deposits even if the physical card is deactivated.
Prepaid cards versus bank accounts for refunds
A prepaid card is faster to set up than a bank account if you do not have one. You can open a prepaid card account online in minutes, whereas opening a bank account may require a visit to a branch or a longer process process. If you need your refund quickly and do not have a bank account, a prepaid card is a practical choice.
However, prepaid cards charge more in fees than most bank accounts. A basic checking account at a community bank or credit union often has no monthly fee and no ATM fees if you use the bank's network. Prepaid cards almost always charge something. Over time, those fees add up.
Prepaid cards also offer less protection than bank accounts. Money in a bank account is insured by the FDIC (Federal Deposit Insurance Corporation) up to $250,000 if the bank fails. Money on a prepaid card is usually insured by the card issuer's own insurance, which may be lower or have different terms. If you plan to keep your refund in the account for a while, a bank account is safer and cheaper.
How to find your prepaid card's routing and account numbers
Your prepaid card's routing number and account number are usually printed on the card itself or available in your online account. Look at the bottom left of the card first — many cards print the routing number there, followed by the account number.
If the numbers are not on the card, log into your prepaid card account online or call the customer service number on the back of the card. Ask for your routing number and account number for direct deposit purposes. The customer service representative will provide both numbers and may email them to you as well.
Write down both numbers and keep them in a safe place. You will need them to file your tax return, and you may need them again if you set up other direct deposits in the future.
Frequently Asked Questions
Can I use a gift card or store card for my tax refund?
No. Gift cards and store cards do not have routing numbers or account numbers, so the IRS cannot deposit money into them. Only prepaid cards designed for general spending, payroll cards, and bank accounts have the routing and account information the IRS needs.
What if I do not know my prepaid card's routing number?
Call the customer service number on the back of your card or log into your online account. The issuer can provide your routing number and account number within minutes. Have your card or account number ready when you call so they can verify your identity.
Will my refund arrive faster if I use a prepaid card instead of a bank account?
No. The IRS processes refunds on the same timeline regardless of whether you use a bank account or a prepaid card — usually within 21 days if you file electronically. The destination account type does not speed up the deposit.
Can I change my prepaid card after I file my return?
No. Once you file your return with a specific routing number and account number, the IRS will deposit your refund to that account. If you want to change the destination, you would need to file an amended return, which delays your refund by several weeks. Choose your card carefully before you file.
What if the prepaid card company goes out of business?
If the card issuer fails, your money is usually protected by the card issuer's insurance or by the FDIC if the issuer holds the funds in an FDIC-insured account. However, the protection may be lower than a bank account's FDIC insurance. Check the card issuer's website or call customer service to understand what happens to your money if the company fails.