What’s the best reloadable card? That depends on the user.
Javelin Strategy & Research named the Serve Cash Back card as the best in its ranking of 10 popular card programs in the new 2024 General-Purpose Reloadable Card Program Scorecard.
However, the Serve card didn’t finish first in any of the three evaluated categories. Its consistency as a top three card in each category boosted its overall score. This highlights—as the study emphasizes—that there are many different ways people use and evaluate reloadable cards.
Javelin conducts a consumer sentiment survey on prepaid cards every year. Since general-purpose reloadable cards are a huge segment of the prepaid market, the survey consistently provides valuable data on how these cards are purchased and used.
“We wanted the scorecard to reflect the desires of those people who use the cards to make sure that the intended audience is getting the product that they value,” said Jordan Hirschfield, Director of Prepaid at Javelin Strategy & Research, and author of the study. “There is a plethora of good options for whatever the consumers need.”
A Card for Every Use
Each of the cards evaluated brings unique benefits to the table.
“Out of the 10 cards we evaluated, six different cards were recognized in one way or another,” Hirschfield said. “So 60% of the market is doing something really well, and that doesn’t mean the other 40% aren’t doing things well too. That goes back to the idea that consumers’ needs are going to be different.”
“Just because one card is better at ongoing experience, some consumers may value the cost process more and really will want to look at that,” he said.
Simple and Secure
Fraud and security issues are critical concerns for users of reloadable cards. For instance, users want the ability turn a gift card on and off if they misplace it, much like with a debit card or a credit card.
“When people go to that display of cards right next to the gift cards, they want to make sure that it’s a brand that they trust,” said Hirschfield. “They want to know that the packaging is safe, that they’re taking every precaution, both the brand of card that’s being offered as well as the retailer that’s selling it to make sure that the card is safe and secure.”
Evaluating the security of a card is often easier for those who sign up online because they can much more readily compare and contrast different options.
“That really empowers the consumer to do that research,” said Hirschfield. “Am I getting the card that fits me? Am I getting a card from someone that I trust that has the benefits that match what I need?”
Another benefit is that online cards are often free of charge, unlike the fees that are frequently incurred at retail stores. Indeed, low costs for setting up a card were found to be the most important feature when choosing a reloadable card.
Stop to Reload
The biggest concern among reloadable card buyers—the primary reason they may hesitate to purchase a specific card—is the difficulty of reloading it. Many issuers are addressing this by encouraging direct deposit, which not only automates the loading process but can also reduce monthly or periodic charges.
Another vital aspect of convenience is the mobile app. When users can deposit a check through the app, much like with a bank account, they find access to be much easier.
Issuers like Target, Walmart, and Western Union, which have physical locations, make reloading much easier for their users. “That’s part of what makes those cards a little more identifiable to the consumers who want them,” Hirschfield said. “If you are someone who frequents one of those retail outlets, you know that it will be easy to deposit money in a physical location.”
The variety of card options is fueling the growth and popularity of this category, which represented a total load value of $234 billion in 2023.
“One card may be better at ongoing experience, while some consumers may value the cost process more and really will want to look at that,” Hirschfield said. “It comes down to the consumers educating themselves on what is the most valuable criteria to them.”