Cashpoints Global is a prepaid card, not a checking or savings account
Cashpoints Global is a prepaid debit card issued through a third-party processor, not a checking account or savings account from a bank. You load money onto the card in advance, and then spend what you've loaded. There is no bank account number, no routing number for direct deposits, and no FDIC insurance protecting your balance the way a bank account would have.
The card itself functions like a debit card — you can use it at ATMs, online, and at merchants that accept Visa or Mastercard. But the money sitting on the card is not held in a traditional deposit account. This distinction matters because it changes how your money is protected, what fees you might face, and whether you can receive direct deposits from an employer or government agency.
Key Takeaways
- Cashpoints Global is a prepaid card product, not a bank checking or savings account, so it has no routing number for direct deposits.
- Money on the card is not FDIC insured the way deposits in a bank account are, though some prepaid cards do carry limited protections.
- You cannot build credit history with a prepaid card because credit bureaus do not track prepaid card activity.
- Cashpoints Global charges monthly maintenance fees and per-transaction fees that a traditional checking account may not charge.
- If you need direct deposit capability or FDIC protection, you will need a traditional bank checking account instead.
How prepaid cards differ from bank checking accounts
A checking account at a bank is a deposit account. The bank holds your money in trust, insures it up to $250,000 through the FDIC, and gives you a routing number so employers and government agencies can deposit money directly into your account. You can write checks, set up automatic bill payments, and the bank tracks your account history for credit reporting purposes.
A prepaid card like Cashpoints Global is a spending tool, not a deposit account. You buy the card, load money onto it (usually through a transfer from another account, a cash reload at a retail location, or a wire transfer), and then spend down that balance. The card issuer holds the money, but it is not a bank deposit and typically does not carry FDIC insurance. There is no routing number, so direct deposit is not possible with most prepaid cards.
This means if you are waiting for a tax refund, stimulus payment, or paycheck to be deposited directly into an account, Cashpoints Global will not work for that purpose. You would need a traditional checking account with a routing number.
Fees and costs associated with Cashpoints Global
Prepaid cards typically charge more in fees than a traditional checking account. Cashpoints Global charges a monthly maintenance fee (the amount varies depending on the card tier), ATM withdrawal fees at out-of-network machines, and sometimes fees for balance inquiries, customer service calls, or inactivity.
A traditional checking account at a bank or credit union often has no monthly fee, especially if you maintain a minimum balance or set up direct deposit. Even free checking accounts do not charge you to withdraw cash at your bank's ATMs or to call customer service. Over a year, the fee difference between a prepaid card and a free checking account can be substantial.
Whether Cashpoints Global can receive direct deposits
Most prepaid cards, including Cashpoints Global, cannot receive direct deposits because they do not have a routing number. A routing number is a nine-digit code that identifies a specific bank or credit union branch. Employers, the IRS, and state tax agencies use routing numbers to deposit paychecks, tax refunds, and stimulus payments directly into an account.
If you are waiting for a refund or a paycheck and you only have a prepaid card, you will need to provide a traditional bank account number and routing number instead. If you do not have a checking or savings account, you can open one at a bank or credit union. Many credit unions offer free checking accounts with no minimum balance requirement.
FDIC insurance and money protection on prepaid cards
Bank checking and savings accounts are insured by the FDIC up to $250,000 per account holder per bank. This means if the bank fails, your money is protected. Prepaid cards are not bank accounts and do not carry FDIC insurance as a standard feature.
Some prepaid card issuers partner with banks to hold the funds in a way that qualifies for FDIC coverage, but this varies by card and issuer. Cashpoints Global's specific insurance status depends on the current terms of service and the bank partner holding the funds. You can contact Cashpoints Global directly or check their website to find out whether your balance carries any FDIC protection.
If protecting your money through federal insurance is important to you, a traditional bank checking or savings account is the more straightforward choice.
Credit history and credit building with prepaid cards
Prepaid cards do not report activity to credit bureaus, so using a prepaid card does not build your credit history or credit score. A checking account also does not directly build credit, but if you use a debit card linked to a checking account and pay bills from that account, you have the option to use credit-building tools that a prepaid card does not offer.
If you are trying to build or repair your credit, a prepaid card will not help. You would need a credit card, a secured credit card, or a credit-builder loan. A checking account is a foundation for managing money, but it is separate from credit building.
When to use a prepaid card versus a checking account
A prepaid card makes sense if you want to control spending, avoid overdraft fees, or do not have access to a traditional bank account. But if you need to receive direct deposits, want FDIC protection, or are looking to minimize fees, a checking account is the better choice.
If you are currently using Cashpoints Global and you need to receive a tax refund, paycheck, or government payment, you will need to open a checking or savings account at a bank or credit union and provide that account's routing number instead. Many banks offer accounts with no monthly fee and no minimum balance, making the switch straightforward.
Frequently Asked Questions
Can I use Cashpoints Global to receive my tax refund?
No. Tax refunds require a routing number, which prepaid cards do not have. You will need a traditional checking or savings account to receive a direct deposit refund from the IRS. You can open a free checking account at most banks or credit unions.
Does Cashpoints Global have FDIC insurance?
Prepaid cards typically do not carry FDIC insurance as a standard feature. Some issuers may partner with banks to provide limited protection, but this varies. Contact Cashpoints Global directly to ask whether your balance is insured.
What is the difference between a prepaid card and a debit card?
A debit card is linked to a bank checking account and draws from your actual deposit account. A prepaid card is a standalone product you load with money in advance. Debit cards come with a routing number for direct deposits; prepaid cards do not.
Can I build credit with a prepaid card?
No. Prepaid card activity is not reported to credit bureaus, so it does not affect your credit score or history. Credit building requires a credit card, secured credit card, or credit-builder loan.
How do I open a checking account if I do not have one?
Visit a local bank or credit union branch, or go to their website to open an account online. You will need a government ID and proof of address. Many institutions offer free checking with no minimum balance. The process typically takes 10 to 15 minutes.