Best Prepaid Cards For 2024

Armaan Joshi
Editor

Editorial Note: This content has been independently collected by the Forbes Advisor team and is offered on a non-advised basis. This content is not part of the comparison service provided by RunPath Regulatory Services. Forbes Advisor may earn a commission on sales made from partner links on this page, but that doesn’t affect our editors’ opinions or evaluations.

Prepaid credit cards are relatively a new concept in India. Prepaid credit cards are similar to credit cards; only money is deposited before use and one can only make spends equivalent to the amount of money deposited in advance.

As the money available for use is deposited in advance, the chances of default are zero to nil and the requirement of a solid credit score does not arise. This makes prepaid cards apt for all the users who do not find it plausible to maintain a good credit score and thereby diminishing their prospects of owning a credit card.

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Best Prepaid Cards in India

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Kotak Spendz Prepaid Card

Kotak Spendz Prepaid Card
4.5
Our ratings take into account a product's cost, features, ease of use, customer service and other category-specific attributes. All ratings are determined solely by our editorial team.

Annual Fee

Nil

Welcome Benefits

Nil

Key Feature

Cashback

Kotak Spendz Prepaid Card

Annual Fee

Nil

Welcome Benefits

Nil

Key Feature

Cashback

Why We Picked It

Kotak Mahindra Bank has launched the Kotak Spendz Prepaid Card for people to keep bulk of their money and make spends. This card has no cap on cashbacks and no lower limit. All kinds of spends are eligible for a cashback. One important feature of Spendz is that it allows you to withdraw money from ATMs.

Key Features:

  • 1% cashback on all spends.
  • Spendz balance cannot exceed INR 1.75 lakh and there is no compulsion to maintain any balance.
  • 10% discount on Myntra on a minimum purchase of INR 3,000.
  • MakeMyTrip gives a discount of 12% on domestic flights and 15% on domestic hotels.
  • Bigbasket discount of 10% on a minimum purchase of 2,000.
  • Licious gives a discount of 10 percent on a minimum spend of INR 750.
  • Swiggy gives a minimum discount of 20% on a minimum transaction of INR 500.
  • Zomato gives a discount of 20% off to the maximum amount of INR 125.
Pros & Cons
  • No upper limit to get the cashback.
  • Cash withdrawal allowed from ATMs.
  • Cashback percentage could have been a little higher.
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State Bank Foreign Travel Card

State Bank Foreign Travel Card
4.5
Our ratings take into account a product's cost, features, ease of use, customer service and other category-specific attributes. All ratings are determined solely by our editorial team.

Annual Fee

One-time load fee of INR 100

Welcome Benefits

Nil

Key Feature

Forex exchange

State Bank Foreign Travel Card

Annual Fee

One-time load fee of INR 100

Welcome Benefits

Nil

Key Feature

Forex exchange

Why We Picked It

The State Bank of India has launched its Foreign Travel Card, which is available in nine currencies, U.S. Dollars (USD), Pound Sterling (GBP), Euro (EUR), Canadian Dollar (CAD), Australian Dollar (AUD), Japanese Yen (YEN), Saudi Riyal (SAR), Singapore Dollar (SGD) and United Arab Emirates Dirham (AED). The range of currencies is really wide. Maximum amount which can be uploaded in it is $2,50,000.00, which is higher than the other companies offering this facility.

  • VISA Variant has U.S. Dollars(USD), Pound Sterling (GBP), Euro (EUR), Canadian Dollar (CAD), Australian Dollar (AUD), Japanese
  • Yen (JPY), Saudi Riyal (SAR) and Singapore Dollar (SGD).
  • MasterCard Variant has U.S. Dollars(USD), Pound Sterling (GBP),
  • Euro (EUR), Canadian Dollar (CAD), Australian Dollar (AUD),
  • Singapore Dollar (SGD) and UAE Dirham (AED).
  • It is valid worldwide except in India, Nepal and Bhutan.
  • First upload fee is INR 100.
  • Reload fee every time is 50.
Pros & Cons
  • Available in various variants.
  • Can be used worldwide.
  • No annual fee.
  • Can not be used in Bhutan, Nepal and India.
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Millennia Prepaid Card

Millennia Prepaid Card
4.5
Our ratings take into account a product's cost, features, ease of use, customer service and other category-specific attributes. All ratings are determined solely by our editorial team.

Annual Fee

INR 499 + GST

Welcome Benefits

Cashback of INR 200 on uploading INR 5000 every year.

Key Feature

Cashback

Millennia Prepaid Card

Annual Fee

INR 499 + GST

Welcome Benefits

Cashback of INR 200 on uploading INR 5000 every year.

Key Feature

Cashback

Why We Picked It

HDFC Bank launched the Millennia Prepaid Credit Card for its customers looking for cashbacks. This card provides cashback up to 5% of the purchase amount. It is easier to get this credit card than the credit cards offered by HDFC Bank.

Pros & Cons
  • Good cashback.
  • Personal accident cover.
  • There is an issuance fee of INR 499.
  • ATM cash withdrawal charge of INR 20 per INR 1,000 withdrawn.
  • Balance inquiry charge of INR 10 each time.
More Details
  • 5% cashback on shopping through PayZapp, SmartBuy.
  • 2.5% cashback on other online spends.
  • 1% cashback on wallet reloads.
  • 1% cashback on offline shopping.
  • Personal accident cover of INR 1 lakh (card has been used within 30 days of the accident).
  • Maximum card balance can be INR 2 lakh.
  • Maximum cashback of INR 400 per month.
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TravelCard – Multi Currency Forex Card

TravelCard – Multi Currency Forex Card
3.5
Our ratings take into account a product's cost, features, ease of use, customer service and other category-specific attributes. All ratings are determined solely by our editorial team.

Annual Fee

Nil

Welcome Benefits

Nil

Key Feature

Forex exchange

TravelCard – Multi Currency Forex Card

Annual Fee

Nil

Welcome Benefits

Nil

Key Feature

Forex exchange

Why We Picked It

HDFC Bank in partnership with VISA launched its travel card, which can be used to withdraw liquid cash and make payments outside india. It can be loaded with three currencies, namely U.S. dollar (USD), EURO, English pound (GBP).

Pros & Cons
  • Good cashback on the payments of utility bills.
  • No joining fee.
  • No annual fee.
  • One can have a maximum of five transactions in a month.
  • Maximum amount of cashback in a bill can be of INR 30 only.
  • Minimum amount of money spent to get a cashback is INR 100.
More Details
  • It has a mobile application which shows the current balance, allows cross currency conversion and also has a live ATM locator.
  • Location based offers from VISA on the mobile application.
  • Card is valid for a period of minimum three years from the date of activation or the date printed on the card whichever is earlier.
  • 20% discount on Swiggy.
  • 30% off on FirstCry website.
  • 20% discount on 1mg.
  • Discount on Lavie, Eat, Meddibuddy, Cult.fit, etc.
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SmartHub Vyapar Prepaid Card

SmartHub Vyapar Prepaid Card
3.5
Our ratings take into account a product's cost, features, ease of use, customer service and other category-specific attributes. All ratings are determined solely by our editorial team.

Annual Fee

Nil

Welcome Benefits

Vouchers worth INR 100 on loading it for the first time.

Key Feature

Cashback

SmartHub Vyapar Prepaid Card

Annual Fee

Nil

Welcome Benefits

Vouchers worth INR 100 on loading it for the first time.

Key Feature

Cashback

Why We Picked It

HDFC Bank has launched SmartHub Vyapar Prepaid Card keeping in mind the business owners wanting to get a cashback on the payment of bills. This card also provides cashback on all kinds of purchases.

Pros & Cons
  • Personal accident cover.
  • Good cashback on the payments of utility bills.
  • No joining fee.
  • No annual fee.
  • Cap on cashback.
  • There is a minimum amount required to be spent to get a cashback.
More Details
  • 1% cashback on any kind of spend.
  • 5% cashback on utility bills.
  • Gift vouchers worth INR 100 on the first recharge.
  • Maximum amount of cashback in a bill can be of INR 30 only.
  • Minimum amount of money spent to get a cashback is INR 100.

Forbes Advisor Ratings


Credit Card Forbes Advisor Rating Annual Fee Welcome Benefit Key Feature LEARN MORE
Kotak Spendz Prepaid Card 4.5 4.5-removebg-preview Nil Nil Cashback View More
State Bank Foreign Travel Card Best Prepaid Cards In October 2022 4.5 4.5-removebg-preview One-time load fee of INR 100 Nil Forex exchange View More
Millennia Prepaid Card 4.5 4.5-removebg-preview INR 499 + GST Cashback of INR 200 on uploading INR 5000 every year. Cashback View More
TravelCard – Multi Currency Forex Card 3.5 3.5-removebg-preview Nil Nil Forex exchange View More
SmartHub Vyapar Prepaid Card 3.5 3.5-removebg-preview Nil Vouchers worth INR 100 on loading it for the first time. Cashback View More

Methodology

We have taken 76 prepaid cards offered by various companies into consideration, following are the key factors taken into consideration to select the best.

1.Cashback: Cashback is an important factor and value to the card, if there is going to be no cashback then these cards are no better than a cheque book.

2.Universal acceptance: We have taken the geography where the card is operational into consideration.

3.Annual Fee: It is an important factor and cards with no or minimal annual and joining fee have been taken.

4.Hidden Charges: We have tried to select the cards with no hidden charges into account.

5.Discounts: Cards providing discounts in popular companies have been considered.

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Are Prepaid Cards the Same as Debit and Credit Cards?

Prepaid credit cards are exactly the same as any other credit card but the only difference is that these cards are backed by a prepaid amount. They are offered to people who do not have a proper credit history or are defaulters with low credit scores and can not be offered a normal credit card as the companies speculate them to default once again.

Hence, a prepaid card is offered to those who have already paid the company in advance. That means they will deposit a certain amount of money with the company and will be allowed to spend only that much and once they have finished that amount, they will have to refill the money once again. So, the payment procedure is the exact opposite to a credit card, where you spend first and pay later.

The services provided by a prepaid card remain the same as that of a normal debit card. That means, you will get the same cash back and reward points and facility that you generally get by using a normal credit card.

Benefits of Prepaid Cards

There are multiple benefits of using a prepaid credit card, and we are going to discuss those benefits one by one:

All the benefits of using a credit card:

A prepaid card works exactly like a debit card, you can only spend the amount of money which is already there, but you do not get benefits like cashback or reward points in a debit card, though, rare debit cards do have these functions, but the cashback is miniscule and not more than 1%, but here you can very easily get around 5% in a good prepaid credit card.

Improve credit score:

You can improve your credit score by using these cards as these cards are also linked and taken into consideration by the credit bureaus like a normal credit card. Hence, any spend made will be registered as an improvement of crest score. This is especially helpful for the people who have a poor credit rating and can not get a normal credit card because of it. They can very easily get a prepaid credit card and get all the benefits of improving the credit report by refilling and using it from time to time.

Extra benefits:

It has all the extra benefits other than cash back or reward points, such as free lounge visits, movie ticket, subscriptions, mile stone benefits, dining benefits, etc.

Types of Prepaid Cards

There are all kinds of prepaid cards, rather all kinds of popular credit cards are available in this segment.

Cashback Credit Cards

Cards giving cash back amounting to a percentage of the purchase done with it.

Co-Branded Credit Cards

Credit cards launched as a result of partnership between a financial institution or a well known service provider, giving discounts on any purchase from the partner company.

Reward Points Credit Cards

These credit cards provide reward points amounting to a percentage of the money spent with their help.

Travel Credit Cards

These credit cards facilitate traveling by providing discounts in booking flights or hotels. They may provide cashback or reward points instead of a discount depending on the offers.

Fuel Credit Cards

Fuel credit cards provide fuel points or cash back on the purchase of fuel from any petrol pump of the partner companies.

Premium Credit Cards

These cards are to facilitate people looking for spending in premium services like, golf course visits, unlimited airport lounges, dining discounts ,health care facilities, discounts, ets. These cards also collaborate with companies and provide discounts and complimentary services.

Types of Fees Prepaid Cards Typically Charge

At this time most of the prepaid cards available in India do not charge any annual fee or rather any fee. A few exceptions may charge a very small amount of money when the customer is going to top up the card; this feature is known as the loading fee. Banks want to improve the flow of money through these cards, hence the charges are less.

Forbes Advisor adheres to strict editorial integrity standards. To the best of our knowledge, all content is accurate as of the date posted, though offers contained herein may no longer be available. The opinions expressed are the author’s alone and have not been provided, approved, or otherwise endorsed by our partners.

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What should I watch out for with a prepaid card?

Firstly, there should be no loading fee(fee charged at the time of loading the card), no annual fee and no joining fee, if in case there’s any fee involved it should be a very small amount.
Secondly one should check the kind of services it has to offer, one can compare the services with a normal credit card with it and then take it.

Is a prepaid card right for me?

Where can I buy a prepaid credit card from in India?

What's the difference between a prepaid card and a gift card?

Best Lifetime Free Credit Card

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