Quick Answer
Prepaid Visa cards can be canceled, but the process depends on the type of card. Gift Visa cards generally cannot be canceled, but reloadable prepaid Visa cards can be canceled by contacting the card issuer. The remaining balance on a canceled reloadable card can usually be refunded.
Can You Cancel Gift Visa Cards?
Gift Visa cards have the funds pre-loaded and cannot be canceled or have the balance refunded. Once purchased, the card and funds belong to the recipient.
However, if the gift Visa card has not been used yet, it may be possible to exchange it for a different gift card at the store where it was purchased. The store will have its own policies on exchanging gift cards. Some may allow an even exchange for a different gift card, while others may not allow gift card exchanges.
If the gift Visa card has been partially or fully used, there is no way to cancel the card or recoup the funds. Any unused funds will remain on the card until spent by the recipient. When purchasing a gift card, it’s essential to consider it a non-refundable purchase.
Can You Cancel Reloadable Prepaid Visa Cards?
Yes, reloadable prepaid Visa cards can usually be canceled and have the remaining balance refunded. These cards are not gifts, but rather act as a reloadable spending account.
To cancel a reloadable prepaid Visa card:
Contact the card issuer
Each prepaid Visa card is issued by a financial company. This company provides the card services and holds the funds loaded onto the card. To cancel the card, you must contact the card issuer directly.
The issuer will have a phone number and website printed on the back of the prepaid card. This is who you contact to close the account.
Request account closure
Contact the card issuer and state you want to close the reloadable prepaid Visa account. They will give you instructions on how to formally request account closure. This commonly involves submitting the request in writing.
You will likely have to provide personal information to verify your identity and authority to close the account. Have the card number and other account details ready when you contact the issuer.
Confirm remaining balance
Ask the card issuer to confirm the current balance remaining on the reloadable Visa card. This is the amount you will want to have returned when closing the account.
The issuer can look up the balance online or have you check it at an ATM. It’s essential to confirm the balance before closing the account permanently.
Request remaining balance be returned
Inform the prepaid card issuer you want the remaining funds returned rather than forfeited when the account is closed. Under most cardholder agreements, you have a right to the remaining balance.
Ask the issuer how you will receive the refund. Most will issue a check for the remaining balance within 7-10 business days after account closure. Others may offer direct deposit refunds.
Confirm account closure
The card issuer will confirm when they have processed the account closure. At this point, the card will be canceled and can no longer be used.
Keep the card until after receiving the account balance refund in case there are any issues that require you to contact them. Once the refund is received, destroy the physical card.
Reasons to Cancel a Prepaid Visa Card
There are a variety of reasons you may choose to cancel a reloadable prepaid Visa card, such as:
You no longer need or want the card
If you initially got the prepaid card for a specific one-time purpose, you may no longer have a use for keeping it. Closing the account provides closure and allows you to get any remaining funds back.
You’re consolidating finances
Some people get multiple prepaid cards for budgeting or organizational purposes. If you want to consolidate spending onto fewer accounts, canceling a card can help simplify your finances.
There are monthly fees
Many prepaid Visa cards charge small monthly maintenance or service fees. If you aren’t using the card frequently, the fees may outweigh the convenience. Closing it avoids wasting money on fees for an unused product.
You want to switch to a new prepaid card
You may find a better prepaid card option that provides more features, lower fees, better rewards, etc. Closing your current card allows you to make a fresh start with a new preferred product.
There have been fraudulent charges
Unfortunately, Visa prepaid cards can be subjected to fraudulent activity like any other cards. If your card number becomes compromised, you’ll likely want to close the account right away to prevent further unauthorized charges.
You had a negative experience with the issuer
Poor customer service, hidden fees, technology glitches, or other issues with the card issuer may lead you to want to take your business elsewhere. Canceling the card lets you cut ties completely.
Canceling Prepaid Card vs. Prepaid Card Expiration
With most reloadable prepaid Visa cards, the funds never expire. The card itself may have an expiration date printed on it, but this does not mean the balance is taken away.
When a prepaid card expires, you can contact the issuer and request a replacement card loaded with your current balance. Your funds roll over and are still valid.
Canceling a prepaid card is different, as it permanently closes the account. The remaining balance is refunded to you rather than transferred to a new replacement card.
If your prepaid card expires and you do nothing, it may end up going dormant but your money typically won’t disappear. However, canceling the card actively cuts ties versus letting it slowly expire over time.
Downsides of Canceling a Prepaid Visa Card
While closing a prepaid Visa card provides closure and allows you to get unused funds back, there are some downsides to consider:
Lost card benefits
Prepaid cards can offer features like rewards points, discounts, free ATM access, overdraft protection, etc. Canceling the card means losing out on any benefits the card provides.
Money trapped during transfer
It takes up to 7-10 business days after closing the account to receive the remaining balance via check or direct deposit. During this time, your money is inaccessible.
Chance of rejected refund
In rare cases, the card issuer may reject refunding the unused balance when you close the account. This may happen if inactivity fees depleted the balance or other situations.
No record of past spending
Downloading previous statements for the card will no longer be possible after cancellation. If you need records of past purchases, be sure to save these beforehand.
Extra planning to spend down balance
To avoid any funds being trapped after closure, you may need to plan extra purchases to intentionally spend down the card balance beforehand.
Steps to Take Before Cancelling a Prepaid Visa Card
If you do decide to cancel your prepaid Visa card, there are some steps to take ahead of time:
Save card statements
Log into your account and download any past card statements you may need for your records. These won’t be accessible after cancellation.
Spend down balance
Try to plan purchases to zero out your card balance so no funds get temporarily stuck when the account closes. Even small amounts may become inaccessible during the closure process.
Notify payees
If you have any recurring payments or deposits set up to automatically charge or load the prepaid card each month, notify these payees you’re closing the account. Update them with new payment information so transactions don’t get rejected after cancellation.
Check cardholder agreement
Review the cardholder terms and conditions to be aware of any balance refund, account closure, inactivity fee, or other policies that may impact closing the account and getting remaining funds back.
Set up new card
If you rely on the prepaid card as your primary spending account, have a new card ready to switch to as your go-to payment method before canceling the old one. Avoid being left without a card in the interim.
Conclusion
While most Visa gift cards have pre-loaded funds that cannot be canceled or returned, reloadable prepaid Visa cards issued by financial companies can be closed like a bank account. The remaining balance is generally refundable after closing a reloadable prepaid debit card. Contact the card issuer to cancel the account and receive unused funds back via check or direct deposit within 7-10 business days. Be sure to spend down the balance, download statements, and take other steps beforehand to smoothly transition away from the prepaid card.
| Type of Prepaid Visa Card | Can It Be Canceled? | Can Unused Balance Be Refunded? |
|---|---|---|
| Gift Card | No | No |
| Reloadable Prepaid Card | Yes | Yes |
Frequently Asked Questions
Can I cancel a prepaid Visa gift card?
No, most gift Visa cards cannot be canceled or have the balance refunded. The funds are pre-loaded onto the card and belong to the recipient. An unused gift card will need to remain valid until spent.
What happens when my prepaid card expires?
Expiration of a prepaid Visa card does not erase the funds – it just means you need to request a replacement card from the issuer to keep accessing your balance. The money rolls over and stays valid even after expiration.
How long does it take to get my money back after canceling a prepaid debit card?
Expect 7-10 business days after closing a reloadable prepaid Visa card to receive the remaining balance back. This is typically mailed as a check or deposited into your linked bank account.
Can I get a refund of prepaid Visa card monthly fees after closing the account?
Unfortunately monthly maintenance, ATM, or other service fees charged on a prepaid card are generally not refundable after closing the account. Only the remaining spendable balance is returned.
What is the downside of waiting for a prepaid card to expire versus proactively canceling it?
Letting a card slowly expire over time means you may continue incurring monthly fees that deplete the balance. Canceling proactively stops these fees immediately and initiates the process of getting remaining funds returned.
