How Old Do You Have to Be to Get a Prepaid Card?

A prepaid card is a payment card preloaded with a specific amount of money, allowing for purchases, bill payments, or cash withdrawals. Unlike debit cards, they are not linked to a bank account, and unlike credit cards, they do not involve borrowing a line of credit. This article clarifies age requirements for obtaining and using these cards, and how minors can access them.

Age Requirements for Prepaid Cards

Most general-purpose reloadable prepaid cards require the primary account holder to be at least 18 years old. This age restriction primarily stems from legal requirements for entering into financial contracts. Financial institutions are obligated to comply with “Know Your Customer” (KYC) regulations and the USA PATRIOT Act, which mandate identity verification for individuals opening accounts. These regulations prevent financial crimes like money laundering and terrorism funding.

While a younger individual might use a prepaid card, the adult purchaser or registrant enters into the agreement with the card issuer. Federal regulations require financial institutions to verify the identity of each person who opens a card account. This means the legal age requirement applies to the individual registering and managing the card, not necessarily the end-user.

Types of Prepaid Cards and Their Accessibility

Prepaid cards come in various forms, each with different accessibility considerations. General-purpose reloadable cards, such as those issued by major payment networks, function much like debit cards and can be used widely. These require an adult primary account holder due to registration and identity verification. Gift cards, which are non-reloadable and often limited to specific merchants or broader networks, have no age restrictions as they do not require personal registration.

Travel cards are another type of prepaid card, designed for use abroad and often loaded with foreign currency. Similar to general-purpose cards, they necessitate an adult for purchase and registration. Specific “teen” or “family” prepaid cards are also available; while designed for younger users, they are always sponsored and managed by a parent or legal guardian. The type of card dictates the level of adult involvement required for access.

How Underage Individuals Can Access Prepaid Cards

Underage individuals can legally use prepaid cards, though direct purchase and registration of many types of cards are restricted. The most common method for a minor to access a prepaid card is through a parent or legal guardian. An adult can purchase and register a general-purpose reloadable card in their own name, then allow a minor to use it as an authorized user. This arrangement allows the adult to oversee card use and manage funds.

Some financial products are specifically designed for teenagers, functioning as prepaid cards managed and funded by a parent. These cards often come with parental controls, such as spending limits and transaction monitoring, to help teach financial literacy. Gift cards also remain a straightforward option for minors, as they require no age verification or registration.

Information Needed to Obtain a Prepaid Card

To obtain a general-purpose reloadable prepaid card, the adult primary account holder must provide specific personal information for identity verification. This includes their full legal name and current physical address; post office boxes are not accepted. A date of birth is also required to confirm the applicant meets the minimum age requirement.

Applicants must also provide a Social Security Number (SSN) or an Individual Taxpayer Identification Number (ITIN). This information is collected to comply with federal anti-money laundering (AML) regulations and customer identification program (CIP) rules, which aim to prevent illicit financial activities. Financial institutions use this data to verify the identity of the account holder before activating the card.