What is a prepaid card? Singapore guide (2026)

Key takeaways:

• A prepaid card is a payment card funded with a preloaded balance. You can only spend what you’ve loaded in the card, because it’s not linked to a bank account or credit line.

• Prepaid cards are useful for budgeting, separating expenses, and making payments without a credit check, but they come with fees and limited fraud protections compared to credit and debit cards.

• For Singapore businesses that need spending controls without the drawbacks of prepaid cards, Airwallex Corporate Cards offer multi-currency support, built-in expense management, and no foreign transaction fees.

A prepaid card is a payment card that draws from a balance you load in advance. Unlike a credit card, it does not give you a line of credit. Unlike a debit card, it is not linked to a bank account. You load money onto the card, spend it, and reload when the balance runs low.

This guide explains how prepaid cards work, the different types available, how they compare to other cards, and what alternatives exist for Singapore businesses looking for smarter ways to manage spending.

What is a prepaid card?

A prepaid card works like a debit card, but without the bank account. You load money onto the card before you use it. Each purchase reduces your balance. Once the balance hits zero, the card stops working until you reload it.

Prepaid cards are issued on major payment networks like Visa and Mastercard, so they are accepted at most merchants that take card payments — both online and in person. Some also allow ATM withdrawals, though this usually comes with a fee.

Because there is no credit line involved, prepaid card spending is not reported to credit bureaus. This means prepaid cards will not help you build or improve your credit score — but it also means no credit check is required to get one.

Who should use a prepaid card?

Prepaid cards suit specific situations better than others. Here are the most common use cases:

• Budgeting and spending control. You can only spend what you load. This makes prepaid cards useful for sticking to a set budget — whether for personal spending, household expenses, or a specific project.

• People without a bank account. In Singapore and globally, prepaid cards give unbanked individuals access to card-based payments without needing a savings or current account.

• Dependants and domestic helpers. In Singapore, cards like the NETS Prepaid Card are commonly used to give children, elderly parents, or domestic helpers a set spending amount with controls managed through a mobile app.

• Travel spending. Multi-currency cards let travellers load foreign currencies and spend abroad without the FX markups that come with most bank cards.

• Separating business expenses. Some businesses use prepaid cards to ring-fence spending for specific departments or employees, though corporate cards with built-in expense management are a more practical option for this.

Types of prepaid cards

Not all prepaid cards work the same way. The differences come down to where you can use them, whether you can reload them, and what they are designed for.

Open-loop vs closed-loop cards

Open-loop cards carry a payment network logo (Visa, Mastercard) and can be used anywhere that network is accepted — online, in-store, and at ATMs worldwide. Most general-purpose prepaid cards fall into this category.

Closed-loop cards can only be used at a specific retailer or group of merchants. Store gift cards are the most common example. They typically carry fewer fees but offer no flexibility outside the issuing merchant.

Reloadable vs non-reloadable cards

Reloadable cards let you add money multiple times. These are designed for ongoing use — daily spending, travel, or recurring expenses. Most prepaid debit cards in Singapore (NETS Prepaid, YouTrip, Wise) are reloadable.

Non-reloadable cards come with a fixed balance and cannot be topped up. Once the money is spent, the card is done. These are most commonly sold as gift cards.

Other common types

• Travel prepaid cards. Designed for overseas spending. They let you lock in exchange rates and load multiple currencies before a trip.

• Payroll cards. Used by employers to pay wages to workers who do not have a bank account. The employee's salary is loaded directly onto the card.

• Gift cards. Pre-loaded with a fixed amount and given as gifts. Available as open-loop (Visa/Mastercard branded) or closed-loop (store-specific).

Prepaid cards vs credit and debit cards

The biggest difference between prepaid, credit, and debit cards is where the money comes from.

• Prepaid cards draw from a balance you load in advance. No bank account or credit line is involved.

• Debit cards pull directly from your bank account. Your spending limit is your account balance.

• Credit cards let you borrow money up to a set credit limit. You receive a bill at the end of each cycle and pay interest if you do not repay in full.

Here is how the three card types compare across key features:

The information in this table has been reviewed to be accurate as of 13 April 2026.

Which card type is best for businesses?

For personal use, the right card depends on your goals — budgeting, building credit, or earning rewards. For business use, the priorities are different: you need spending controls, visibility across your team, and integration with your accounting tools.

Prepaid cards give you a fixed spending limit, but they come with reload fees, limited fraud protections, and no way to connect transactions to your accounting software. Credit cards offer rewards, but they expose the business to debt and make it harder to control what each employee spends.

Corporate cards offer the best of both worlds. Airwallex Corporate Cards, for example, give you:

• Spending control without the limitations. Issue Visa cards to employees instantly and set daily, weekly, or monthly spending limits per card — no preloading or reloading required.

• Real-time visibility. Track every purchase from a single dashboard as it happens, instead of waiting for monthly statements or chasing receipts.

• No foreign transaction fees. Cards draw directly from your Airwallex multi-currency wallet. When you spend in a currency you already hold, there is no FX markup.

• Built-in accounting integration. Every transaction syncs automatically to tools like Xero — no manual reconciliation at month end.

Prepaid card security and fraud protections

Prepaid cards offer some protection if your card is lost or stolen, but the level of coverage depends on the card issuer. There is no universal standard.

Here is what to know:

• Limited liability protections. Unlike credit cards, which typically offer zero-liability policies for unauthorised charges, prepaid cards may not. Some issuers offer voluntary protections, but these are not guaranteed.

• No chargeback rights by default. Credit cards give you the right to dispute a charge and have the amount reversed while the issuer investigates. Most prepaid cards do not offer this.

• Registration matters. If you register your prepaid card with the issuer (providing your name and contact details), you are more likely to recover funds if the card is lost or compromised. Unregistered cards are treated like cash — if someone else uses it, the money is gone.

• Card freeze features. Many modern prepaid card apps (such as NETS App or YouTrip) let you lock your card instantly if it goes missing. This is now a baseline expectation for any card-based product.

In Singapore, prepaid card issuers that hold a licence from the Monetary Authority of Singapore (MAS) under the Payment Services Act are required to safeguard customer funds. However, the consumer protections available to prepaid cardholders are still narrower than those for credit or debit card users.

If fraud protection is a priority, corporate cards with real-time controls, instant card freezing, and integration with your expense management system offer a stronger safeguard than a standard prepaid card.

How do prepaid cards work?

Prepaid cards follow a simple cycle: load, spend, reload.

Step 1: Get a card

You can buy a prepaid card online, in-app, or in person, depending on the card.

In Singapore, NETS Prepaid Cards are available at convenience stores like 7-Eleven and Cheers, as well as at MRT ticketing offices. Digital prepaid cards like YouTrip and Wise can be ordered through their apps.

Step 2: Load funds

Before you can spend, you need to add money to the card. Common loading methods include:

• Bank transfer from a linked savings or current account

• Debit or credit card top-up through the card provider's app

• Cash top-up at participating retail locations (e.g. 7-Eleven for NETS Prepaid)

• Direct deposit — some cards accept salary or government benefit payments directly

The amount you load becomes your available balance and your spending limit.

Step 3: Spend

Once loaded, you can use the card for purchases online and in-store, wherever the card's payment network (Visa, Mastercard, or NETS) is accepted. Some cards also allow ATM cash withdrawals, though this usually incurs a fee.

Each transaction reduces your balance in real time. When the balance reaches zero, the card declines further transactions until you reload.

Step 4: Reload

For reloadable cards, you top up using any of the loading methods above and continue spending. Non-reloadable cards (like gift cards) cannot be topped up. Once the balance is used, the card is finished.

Prepaid card fees

Prepaid cards are often marketed as "free" or "no annual fee," but most come with charges that can add up. Before choosing a card, check the full fee schedule. Here are the most common types:

Activation or purchase fee

Some cards charge a one-time fee when you buy or activate the card. For example, the NETS Prepaid Card costs S$10 at retail locations — S$5 for the non-refundable card cost, plus S$5 in stored value.

Monthly maintenance fee

Some prepaid card issuers charge a recurring monthly fee, which is deducted from your card balance. Not all cards have this: many Singapore prepaid cards (NETS, YouTrip) do not charge a monthly fee.

Reload fee

Adding money to your card may cost extra, depending on how you top up. Cash reloads at retail locations are more likely to carry a fee than bank transfers or in-app top-ups.

ATM withdrawal fee

Withdrawing cash from an ATM using a prepaid card almost always incurs a fee — both from the card issuer and potentially from the ATM operator. Some cards also limit how much you can withdraw per day.

Foreign transaction fee

Using a prepaid card for purchases in a foreign currency typically triggers a foreign transaction fee. This can range from 1% to 3% of the transaction amount, depending on the card.

Multi-currency cards like YouTrip and Wise reduce or eliminate this fee by letting you hold and spend in the local currency directly.

Inactivity fee

If you do not use your card for a set period (often 6–12 months), some issuers charge an inactivity fee. This is deducted from your remaining balance.

Balance enquiry fee

A small number of cards charge a fee for checking your balance at an ATM. Checking via the card issuer's app is almost always free.

The bottom line: Fees vary widely between providers. Before committing to a prepaid card, read the full fee disclosure, not just the headline pricing. The cheapest card to buy is not always the cheapest card to use.

How to get a prepaid card in Singapore

Getting a prepaid card in Singapore is straightforward. Here is the typical process:

1. Choose your card

Decide what you need the card for — daily spending, travel, or giving to a dependant. This narrows your options:

• Local spending and transit: NETS Prepaid Card

• Multi-currency travel: YouTrip, Wise, or Revolut

• Business expenses: Consider a corporate card instead (we cover this in the Alternatives section below)

2. Purchase or apply

• Retail cards (e.g. NETS Prepaid): Buy in person at 7-Eleven, Cheers, or MRT ticketing offices. No application or credit check needed.

• Digital cards (e.g. YouTrip, Wise, Revolut): Download the app, provide your personal details, and verify your identity. A physical card is mailed to you; a virtual card may be available instantly.

3. Load funds

Add money through your preferred method — bank transfer, debit card, or cash (if the card supports it). Once funded, the card is ready to use.

4. Start spending

Use the card at any merchant that accepts its payment network. Manage your balance and transactions through the card issuer's app.

No credit check, no bank account, and no long application — that is the appeal of prepaid cards. But for businesses looking for more control and fewer limitations, the next section covers better alternatives.

Prepaid card alternatives

Prepaid cards work well for simple, short-term spending needs. But if you find yourself reloading constantly, paying fees on every transaction, or wishing you had better fraud protections, it is worth considering alternatives.

Option 1: Secured credit cards

A secured credit card requires a cash deposit upfront — typically equal to your credit limit. You spend against that limit and receive a monthly bill, just like a regular credit card.

The key difference from a prepaid card is that secured credit cards report your payment activity to credit bureaus. If your goal is to build or repair your credit history, this matters, because prepaid cards do not report anything.

Secured credit cards also come with stronger consumer protections, including chargeback rights if a merchant fails to deliver what you paid for.

Option 2: Debit cards

A standard debit card is linked to your bank account. You spend what you have in the account — similar to a prepaid card, but without the need to reload separately. Debit cards also tend to carry fewer fees and offer stronger fraud protections than most prepaid cards.

The trade-off is that you need a bank account to get one, and your bank account details are tied to the card. If the card is compromised, your full account balance is potentially at risk.

Option 3: Corporate cards for businesses

For businesses, prepaid cards are often a stopgap rather than a long-term solution. They solve the spending control problem, but they create new ones: reload fees, no accounting integration, limited fraud protections, and no way to manage employee spending across teams.

Corporate cards are built for this. With Airwallex Corporate Cards, the most common prepaid card frustrations go away:

• No more reloading. Instead of manually topping up individual cards, employees spend directly from your Airwallex Business Account balance. You fund the account once, and every card draws from it — you don’t need to individually top up each card.

• No more fee stacking. Prepaid cards often charge for reloads, ATM use, inactivity, and foreign transactions. Airwallex Corporate Cards have none of these. You pay 0% foreign transaction fees, and there are no reload or inactivity charges.

• No more blind spots. Instead of waiting for statements or asking employees for receipts, every purchase appears on your dashboard the moment it happens — and syncs automatically to Xero, QuickBooks, or NetSuite.

• No more one-size-fits-all limits. Set different spending limits per card, per employee, per time period. Freeze or cancel any card instantly if something looks wrong.

If your business currently uses prepaid cards to manage team spending, switching to corporate cards removes the fees and manual work while giving you stronger protections and real-time visibility.

Frequently asked questions (FAQs)

What is a prepaid card used for?

A prepaid card is used to make purchases online, in-store, or at ATMs — just like a debit or credit card. The difference is that you load money onto the card before spending. Common uses include budgeting, travel spending, giving dependants a set allowance, and making payments without a bank account.

How is a prepaid card different from a debit card?

A prepaid card draws from a balance you load in advance. A debit card draws directly from your bank account. Both limit you to spending money you already have, but debit cards require a bank account and typically offer stronger fraud protections. Prepaid cards do not need a bank account and are available to anyone without a credit check.

Do prepaid cards build credit?

No. Prepaid cards do not build credit. Because you are spending your own preloaded funds — not borrowing — there is no credit activity to report. Card issuers do not send prepaid card data to credit bureaus, so your spending has no effect on your credit score, positive or negative. If building credit is a priority, a secured credit card or a traditional credit card used responsibly is the right path.

What fees do prepaid cards charge?

Fees vary by card, but the most common include activation fees, reload fees, ATM withdrawal fees, foreign transaction fees, and inactivity fees. Some cards also charge a monthly maintenance fee. Always check the full fee schedule before choosing a prepaid card — the cheapest card to buy is not always the cheapest to use.

Can I use a prepaid card overseas?

Yes, if the card is issued on a global payment network like Visa or Mastercard. However, most standard prepaid cards charge a foreign transaction fee of 1%–3% per purchase. Multi-currency cards like YouTrip and Wise reduce or eliminate this fee by letting you hold and spend in local currencies directly. For businesses, Airwallex Corporate Cards offer 0% foreign transaction fees when you spend from a held currency balance.

Do prepaid cards expire?

Prepaid cards typically have an expiration date printed on the card, usually three to five years from the date of issue. However, the funds loaded onto the card do not expire. If your card is approaching its expiry, you can usually request a replacement from the issuer and transfer the remaining balance to the new card.

Sources:

1. https://www.nets.com.sg/nets/for-you/nets-prepaid-card

This publication does not constitute legal, tax, or professional advice from Airwallex, nor does it substitute seeking such advice, and makes no express or implied representations / warranties / guarantees regarding content accuracy, completeness, or currency. If you would like to request an update, feel free to contact us at [email protected]. Airwallex (Singapore) Pte. Ltd. (201626561Z) is licensed as a Major Payment Institution and regulated by the Monetary Authority of Singapore.