Your Equifax settlement payment may arrive as a pre-paid card instead of a check or bank transfer

If you received a pre-paid card from the Equifax data breach settlement, it works like a debit card but with some limits you need to know about. The card comes loaded with your settlement amount and can be used at most places that take Visa. However, the card issuer charges fees for certain actions — and those fees come directly out of your balance, so understanding them before you use the card matters.

The settlement resolved claims from the 2017 Equifax data breach that exposed personal information on millions of people. The company offered three payment methods: direct deposit to a bank account, a check mailed to your address, or a pre-paid card. If you chose the card or didn't choose anything and the settlement administrator sent you one, you need to know how to use it without losing money to fees.

Key Takeaways

  • Pre-paid cards from the settlement charge fees for ATM withdrawals, balance inquiries, and some other transactions, so each fee reduces what you can spend.
  • You can use the card at stores and restaurants like a regular debit card with no fee, but ATM cash withdrawals typically cost $1.50 to $2 per transaction.
  • The card expires after a set period, and any remaining balance may be forfeited if you do not use or transfer it before the expiration date.
  • If you did not choose a pre-paid card but received one, you can usually request a check or direct deposit instead by contacting the settlement claims administrator.

How the pre-paid card works and what fees apply

The card functions as a Visa debit card, meaning you can swipe it at stores, restaurants, and online retailers just as you would a regular debit card. Purchases at merchants carry no fee — you simply spend down your balance. This is the cheapest way to use the money if you have regular expenses you can pay with the card.

Fees kick in when you try to withdraw cash or perform certain account actions. ATM withdrawals typically cost between $1.50 and $2 per transaction, depending on which ATM network the card uses. Balance inquiries at an ATM may also charge a small fee. Some cards charge a monthly maintenance fee if you do not use the card within a certain period, though this varies by card issuer. Read the fee schedule that came with your card or contact the card issuer's customer service number (printed on the back) to confirm which fees apply to yours.

The card also has daily spending limits — usually $500 to $1,000 per day — which means you cannot withdraw or spend your entire balance in a single transaction. This is a security feature, but it matters if you need to access a large portion of your money quickly.

Using the card at stores versus withdrawing cash

The most cost-effective way to use your settlement money is to spend it directly at merchants using the card. Grocery stores, pharmacies, gas stations, and online retailers all accept Visa, and you pay no fee for these transactions. If you have bills to pay or regular purchases to make, using the card this way lets you keep your full settlement amount.

Withdrawing cash at an ATM costs money each time you do it. If your settlement is $500 and you withdraw it all at once, you might lose $2 to fees. If you withdraw in smaller amounts over time, fees add up faster. For example, five $100 ATM withdrawals at $1.50 each costs $7.50 total — money that came out of your settlement. Plan your cash needs in advance and withdraw larger amounts less frequently if you need cash.

Some banks and credit unions allow cardholders to withdraw cash at their teller windows with no fee, even if the card is not from that bank. Call ahead to ask, or try asking a teller when you visit. This can save you ATM fees if you need cash.

Card expiration and what happens to unused money

Pre-paid cards from settlements typically expire 12 months after they are issued, though some may have longer validity periods. The expiration date is printed on the front of the card. After that date, you cannot use the card to make purchases or withdraw cash, even if money remains on it.

If you have not spent your full settlement amount by the expiration date, you need to act before the card stops working. Some card issuers allow you to transfer remaining funds to a bank account, though this may involve a fee or a specific process. Contact the card issuer's customer service number to ask about your options. In some cases, unclaimed balances are returned to the settlement fund or held in escrow, but you should not rely on this — use or transfer your money before expiration.

Requesting a different payment method if you received a card by default

If you did not actively choose the pre-paid card option but received one anyway, you may be able to switch to a check or direct deposit instead. The settlement claims administrator (the company handling all payments) typically allows changes within a certain window after cards are issued. Contact information for the claims administrator should be on the card packaging or in any letter that came with it.

Explain that you want to change your payment method and ask what documentation they need. Some administrators require a written request; others accept phone or online requests. Processing a change takes time — usually one to two weeks — so request it as soon as you decide the card is not right for you. If the change window has closed, you are stuck with the card, so act quickly if you want to switch.

Protecting your card and reporting problems

Treat the pre-paid card like cash or a debit card. Do not share the card number, expiration date, or CVV (the three-digit security code on the back) with anyone you do not trust. If the card is lost or stolen, contact the card issuer immediately using the number on the back of the card or on your card documentation. Most issuers can freeze the card to prevent unauthorized use and issue a replacement.

If you notice unauthorized charges or the card stops working, contact customer service right away. Keep any documentation that came with the card, including the fee schedule and customer service number, in case you need to dispute a charge or ask questions later. Settlement cards sometimes have limited dispute protections compared to regular bank debit cards, so read the terms carefully.

Frequently Asked Questions

Can I transfer my pre-paid card balance to my bank account?

Some card issuers allow balance transfers to a linked bank account, but not all do. Contact the card issuer's customer service number to ask whether this option is available for your card. If it is, there may be a fee or a specific process you need to follow. Do this before your card expires.

What happens if I do not use the card before it expires?

Once the card expires, you cannot use it to make purchases or withdraw cash. Any remaining balance may be forfeited, returned to the settlement fund, or held in escrow depending on the settlement terms. Contact the claims administrator or card issuer before expiration to find out what happens to unused funds and whether you can transfer the money elsewhere.

Can I use the card internationally or online?

Most settlement pre-paid cards are Visa cards and work online and at many international merchants. However, foreign transactions may carry additional fees, and some countries or merchants may not accept pre-paid cards. Check your fee schedule or call customer service before using the card outside the United States.

Is there a way to avoid ATM fees?

Yes. Use the card at stores and merchants instead of withdrawing cash. If you need cash, ask your bank or credit union whether you can withdraw from their teller window at no fee. Some card issuers also partner with certain ATM networks that waive fees for their cardholders — ask customer service which ATMs are fee-free for your card.

What if my card arrives damaged or does not work?

Contact the card issuer's customer service number immediately. They can verify the card status, replace a damaged card, or troubleshoot why the card is not working. Keep your settlement documentation handy when you call so you can confirm your identity and settlement details.