Will Prepaid Cards Work with Apple Pay?

Will Prepaid Cards Work with Apple Pay?

November 18, 2020         Written By Heaven Speirs

Apple Pay is one of the most popular mobile wallets in the world, with over 441 million users and counting. The app combines the security of a digital wallet with the convenience of a peer-to-peer transfer platform. While there are many cards that work with Apple Pay, prepaid cards are only selectively compatible at this time. Read on to learn which prepaid cards work with Apple Pay.

What Prepaid Cards Work on Apple Pay?

Currently, the only U.S.-based prepaid cards that Apple Pay accepts are the Chase Liquid® prepaid card and prepaid cards from Wells Fargo. With that in mind, you may want to consider a secured card for use on Apple Pay. The mobile wallet is persistently adding new banks to its network of supported payment providers. If you have a prepaid card you’d like to use with Apple Pay, you can try adding it as a payment method. If it works, great! If not, the app will tell you before you try to use the card for a transaction.

Featured Prepaid Card

Top Features:

No late fees or interest charges because this is not a credit card it is a prepaid card.

Follow these steps to add a prepaid card to Apple Pay from your iPhone:

  1. Open the Wallet app and select the plus sign emblem in the upper right corner.
  2. Complete the prompts to add your card information. You’ll be asked to take a photo of the card and follow the bank’s instructions from there. Watch this demo to see an example.
  3. The card issuer will verify if the card works for Apple Pay. You may need to provide additional information for the card to work, or it may be accepted right away.
  4. If the card is not supported on Apple Pay, you’ll need to use a different payment method for transactions. If it is supported, you can use it on Apple Pay for online and in-person purchases.

To add a card on your iPad, go to Settings, then Wallet & Apple Pay. Select the Add Card option, and then complete steps 2-4 above. Apple provides detailed tutorials for how to add cards to Apple Pay on each device type, including Mac computers and Apple Watch.

What Payment Methods Does Apple Pay Support?

Apple Pay accepts credit and debit cards from hundreds of banks, credit unions, and card issuers in the U.S. They have a comprehensive list of participating banks on their website, and they add new banks throughout the year. You cannot use a bank account on Apple Pay, but you can add your bank debit card as a payment method.

Some retailers have connected their store rewards programs to Apple Pay. You can earn or redeem your store rewards directly through the mobile wallet. The rewards card must be compatible with Apple Pay, and you must have it activated at the time of use.

Furthermore, Apple Pay works for select forms of transit in China, Hong Kong, Japan, the United Kingdom, the United States, Russia, Canada, Australia, Singapore, and Taiwan. Instead of using a transit card to ride the subway, you can pay with Apple Pay.

Apple Cash – A Digital Prepaid Card for Apple Pay

Apple Cash is a peer-to-peer transfer service within Apple Pay that doubles as a digital prepaid card. You can load funds to your Apple Cash account and then use them to pay for transactions via Apple Pay. Here’s how it works:

  • Turn on Apple Cash within Apple Pay.
  • Add money to Apple Cash using a U.S. debit card or prepaid card. The minimum amount you can add is $10.
  • Send or receive funds through Apple Cash.
  • Use Apple Cash through Apple Pay to pay for purchases.
  • Transfer money from Apple Cash to your bank account.
  • If you earn cash back on an Apple Card (Apple’s rewards credit card), the Daily Cash will go to your Apple Cash balance.

As you can see, Apple Cash offers a wide range of services, all within Apple Pay. It functions a lot like PayPal or Venmo, but it also acts as a prepaid card for digital transactions.

Featured Prepaid Card

Top Features:

No late fees or interest charges because this is not a credit card it is a prepaid card.

Requirements to Use Apple Cash

In order to use Apple Cash, you must be 18 years or older and live in the United States. Apple Cash only works on devices with iOS 11.2 or later or watchOS 4.2 or later. Complete the two-factor authentication for your Apple ID and sign into any devices you’d like to use Apple Cash on. Then you can send money, receive money, and check your account information accordingly.

Apple Cash Does Not Work with Credit Cards

Apple Cash does not support credit cards at this time. You can only fund your account with a supported debit card or prepaid card. You can use cash back from an Apple Card via Apple Cash, but you cannot fund a peer-to-peer transfer with a credit card. If you’d like to use a credit card for P2P payments, consider Venmo as an alternative.

Are There Balance Limits for Apple Cash?

There are some restrictions for person-to-person payments in Apple Cash. The maximum amount of money you can have in your Apple Cash account is $20,000. The minimum you can add per transaction is $10, and the maximum is $10,000 per transaction. You must have sufficient funds on your debit card or prepaid card to support the transaction. Be aware of any fees your card issuer or bank may charge for this service.

When it comes to sending or receiving money via Apple Cash, the minimum amount is $1 and the maximum amount is $10,000. You can only send/receive up to $10,000 within a seven-day period.

How to Transfer Money from Apple Cash to Your Bank Account

You can transfer money from your Apple Cash balance to your bank account or debit card. It takes 1-3 days for the funds to arrive in your account, unless you opt for the Instant Transfer service. Here’s how it works:

  • Open Apple Cash within your Wallet app.
  • Select Transfer to Bank and enter the amount you would like to transfer. This must be a minimum of $1, unless you have less than $1 in your account. In that case, you can transfer the entire balance.
  • Select Instant Transfer or 1-3 Business Days. Instant Transfers are only available for eligible Visa debit cards. If you opt for an Instant Transfer, a 1% fee will be deducted from your transferred funds.
  • Select the card or bank account you’d like to transfer the money to. You can also select Add Card if you need to add a new account to Apple Cash.
  • Confirm the transfer and wait for the funds to arrive in your account.

Can I Add Cash to Apple Pay?

Some P2P services like PayPal allow you to add cash to your digital account through their retail partners. Apple does not have a service like this for now. The only way to put cash into your Apple Cash account would be to deposit it into a connected bank account and then transfer the funds accordingly.

Can I Use a Secured Credit Card on Apple Pay?

You can use a secured credit card on Apple Pay if it is issued by a participating bank or card issuer. Follow our instructions at the beginning of this guide to test your card’s compatibility.

You might be wondering, “What’s a secured credit card?” This is essentially a prepaid card that can help you build credit. It functions just like a traditional credit card, but instead of the card issuer funding the line of credit, you do. You can use the card for your daily transactions, and then you’ll receive a bill each month with a minimum payment and total balance owed. Make your payments on time, and the card issuer will report them to the three major credit bureaus.

It’s easy to qualify for a secured credit card even if you have bad credit, no credit, or past credit challenges. The security deposit you provide for the card is fully refundable, and you can cancel the card at any time. After several months of on-time payments, you may have the option to upgrade to an unsecured line of credit. This is an excellent way to build your credit score and learn smart money habits.

Top Secured Card Offers

Secured cards are a good alternative to prepaid cards for use on Apple Pay.  Here are some of the best secured credit card offers on the market today:

OpenSky® Secured Visa® Credit Card

The OpenSky® Secured Visa® Credit Card accepts security deposits as low as $200, so you can start building your credit as quickly as possible. The card has a low annual fee of $35, and there is no credit check required to qualify.

Merrick Bank Secured Visa® from Merrick Bank

With the Merrick Bank Secured Visa® from Merrick Bank, you can deposit anywhere from $200 to $3,000 to act as your line of credit. After 9 months, the bank will review your account to see if you qualify for an unsecured credit line increase!

Applied Bank® Secured Visa® Gold Preferred® Credit Card

The Applied Bank® Secured Visa® Gold Preferred® Credit Card has a low 9.99% (Fixed) APR. The annual fee for the card is $48, but no minimum credit score is needed for approval. Card payments are reported to all three credit bureaus.

The information contained within this article was accurate as of November 18, 2020. For up-to-date information on any of the terms, cards or offers mentioned above, visit the issuer's website. Many of the offers on this article are from our affiliate partners, and LowCards.com may be compensated if you take action with any of our affiliate partners.

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heaven

About Heaven Speirs

Heaven Speirs is a contributing writer for LowCards.com. She remains up-to-date with the latest developments in the credit card industry and the financial sector as a whole. Heaven has over 10 years of experience in online journalism, the bulk of which has been focused on personal finance. Heaven attended Oklahoma State University, where she discovered her talent for research and content creation. In her spare time, Heaven enjoys painting, playing poker, and spending time with her husband and three dogs.