Advance Plus Banking is not a traditional checking account
Advance Plus Banking is a prepaid card product, not a checking account. It functions like a debit card tied to a stored balance rather than a bank account with routing and account numbers. You load money onto the card, and that balance is what you can spend — there is no overdraft protection, no check-writing capability, and no FDIC deposit insurance the way a real checking account has.
The product is marketed to people who cannot open a standard checking account, often because of banking history issues flagged in ChexSystems or Early Warning Services. It can hold direct deposits and receive ACH transfers, which makes it look like a checking account in some ways. But the underlying structure is prepaid, not deposit-based.
If you are comparing Advance Plus Banking to a traditional checking account because you need one of those specific features — like writing checks, overdraft coverage, or FDIC protection — this product will not fill that role.
Key Takeaways
- Advance Plus Banking is a prepaid card, not a checking account, so it does not come with a routing number, account number, or FDIC insurance.
- You can receive direct deposits and ACH transfers on the card, but you cannot write checks or access overdraft protection.
- The product is designed for people with banking history issues that prevent them from opening a standard checking account.
- Fees vary by card tier and usage, so compare the cost of monthly maintenance, ATM withdrawals, and transfers before committing.
- If you need actual checking account features like check-writing or overdraft, you will need to open a bank account elsewhere.
How Advance Plus Banking works as a prepaid card
When you open an Advance Plus Banking card, you receive a Mastercard or Visa debit card linked to a prepaid account. Money you load onto the card — whether through direct deposit, bank transfer, or cash reload at a retail location — sits in that prepaid account. You spend down that balance by swiping the card, using it online, or withdrawing cash at ATMs.
The card issuer holds your money in a pooled account, not in an individual bank account in your name. This is the key difference from a checking account. A checking account is a deposit relationship with a bank; a prepaid card is a stored-value product. The card issuer is not a bank in most cases — it is a financial services company that partners with a bank to hold the funds.
Because there is no underlying bank account, there is no routing number or account number you can give to employers or creditors. Some prepaid cards do provide these numbers for direct deposit purposes, but they are not true bank account identifiers.
What Advance Plus Banking can and cannot do
Advance Plus Banking can receive direct deposits, which is useful if you are paid by an employer or receive government benefits. You can also receive ACH transfers from other bank accounts. The card works at most merchants that take Mastercard or Visa, and you can withdraw cash at ATMs, though fees may apply depending on which ATM network you use.
Advance Plus Banking cannot issue checks. If you need to pay a bill by check or send a check to someone, you cannot do it from this card. There is no overdraft protection — if your balance is zero, the card declines. You cannot set up automatic bill payments the way you might with a checking account, though some card issuers do offer bill pay through their app.
The card also does not come with FDIC insurance. If the card issuer fails, your money is not protected the way deposits in an FDIC-insured bank account are. Some prepaid card programs do hold funds in FDIC-insured accounts at partner banks, but you need to verify this with the specific card issuer.
Fees and costs to understand before you choose
Advance Plus Banking cards typically charge a monthly maintenance fee, which ranges depending on the card tier you select. Some issuers offer a basic tier with a lower monthly fee and limited features, and a premium tier with more features and a higher fee. You should compare these costs against what you would pay for a checking account at a bank or credit union.
Beyond the monthly fee, watch for ATM withdrawal fees. If you use an out-of-network ATM, you may pay $2 to $3 per withdrawal. Some cards offer a limited number of free out-of-network withdrawals per month, then charge for additional ones. If you reload cash onto the card at retail locations like Walmart or CVS, those reloads may also carry a fee.
Other potential charges include fees for declined transactions, customer service calls, or paper statements. Some cards charge to add a second cardholder or to freeze the card. Read the fee schedule carefully — the total cost of using the card over a year can add up quickly if you use multiple services.
When Advance Plus Banking makes sense versus a real checking account
Advance Plus Banking is useful if you have been denied a checking account because of ChexSystems issues or a history of overdrafts and returned checks. It gives you a way to receive direct deposits and make purchases without maintaining a traditional bank account. It also works if you want to keep spending separate from a main bank account, or if you prefer not to link a bank account to online shopping.
Advance Plus Banking does not make sense if you need to write checks, pay bills by check, or need overdraft protection. It also does not make sense if you can open a checking account at a bank or credit union, because most checking accounts have lower total fees and come with FDIC protection. Many banks and credit unions now offer second-chance checking accounts specifically for people with banking history issues, and these are usually cheaper and more flexible than prepaid cards.
If you are considering Advance Plus Banking, first check whether you can open a checking account at a local credit union or an online bank that specializes in second-chance accounts. These alternatives often have lower fees and more features.
How to move money in and out of Advance Plus Banking
Direct deposit is the easiest way to load money onto the card. You provide your employer or benefits administrator with the routing number and account number associated with your card (if the issuer provides them), and the money deposits automatically on payday. This works for paychecks, tax refunds, Social Security, unemployment benefits, and other regular payments.
You can also transfer money from a bank account to your Advance Plus Banking card using ACH transfer, though this may take one to three business days. Some card issuers charge a fee for incoming transfers. To withdraw cash, you use the card at ATMs in the issuer's network for free, or pay a fee at out-of-network ATMs. Some retailers also offer cash back when you swipe the card at checkout.
To reload cash onto the card at a retail location, you go to a participating store (often Walmart, CVS, or similar), give the cashier cash and your card, and the money loads onto the card immediately. This usually costs $1 to $3 per reload.
Comparing Advance Plus Banking to other options
| Feature | Advance Plus Banking (Prepaid Card) | Traditional Checking Account | Second-Chance Checking |
|---|---|---|---|
| Receives direct deposit | Yes | Yes | Yes |
| Write checks | No | Yes | Yes |
| Overdraft protection | No | Often yes (with fees) | Usually no |
| FDIC insurance | No (usually) | Yes, up to $250,000 | Yes, up to $250,000 |
| Monthly fee range | $5–$15 | $0–$15 | $5–$20 |
| Requires clean banking history | No | Yes (usually) | No |
Second-chance checking accounts are offered by many banks and credit unions specifically for people with ChexSystems records or past overdraft issues. These accounts often have higher fees than standard checking, but they come with FDIC insurance, check-writing, and sometimes overdraft protection. They are usually cheaper overall than a prepaid card if you use the account regularly.
Online banks and credit unions are worth checking because their approval standards are often looser than traditional brick-and-mortar banks. Some will open an account for you even with banking history issues, or will waive the ChexSystems check entirely.
Frequently Asked Questions
Can I use Advance Plus Banking for direct deposit like a checking account?
Yes, Advance Plus Banking can receive direct deposits from employers and government benefits. The card issuer provides a routing number and account number for this purpose, though these are not true bank account identifiers. Direct deposits typically post within one to two business days.
Will Advance Plus Banking show up on my credit report?
No, prepaid card activity does not report to credit bureaus. Using Advance Plus Banking will not build credit history the way a checking account with overdraft or a credit card would. If building credit is important to you, a prepaid card alone will not help.
What happens to my money if the card issuer goes out of business?
It depends on how the issuer holds funds. Some prepaid card issuers keep customer money in FDIC-insured accounts at partner banks, which means your balance is protected up to $250,000. Others do not. Check the card issuer's disclosure documents to see whether your funds are FDIC-insured.
Can I write checks with Advance Plus Banking?
No, Advance Plus Banking does not come with check-writing capability. If you need to pay bills by check or send checks to others, you will need a traditional checking account or a second-chance checking account from a bank or credit union.
Is Advance Plus Banking cheaper than a checking account?
Not always. Monthly fees for Advance Plus Banking typically range from $5 to $15, plus additional fees for ATM withdrawals, reloads, and other services. Many checking accounts have no monthly fee, and even second-chance checking accounts often cost less overall when you factor in all the fees. Compare the total cost of both options before deciding.