How the Equifax Settlement Pre-Paid Card Works and What You Need to Know

What the Equifax settlement card is and how to use it

The Equifax settlement pre-paid card is a Visa card loaded with money from the 2017 Equifax data breach settlement. If you were part of the class action lawsuit and chose the cash payment option instead of credit monitoring, the settlement administrator sends your payment to you on this card rather than by check or direct deposit. The card arrives in the mail, usually within a few weeks after the settlement period closes, and you can use it like any other Visa card at stores, ATMs, and online.

You do not have to do anything to receive the card if you already submitted a claim and selected the cash option. The card comes pre-loaded with your settlement amount — typically between $25 and several hundred dollars depending on when you filed and how many claims the fund received. Once it arrives, you can spend it, transfer the balance to your bank account, or withdraw cash from an ATM.

Key Takeaways

• The pre-paid card arrives in the mail automatically if you filed a claim and chose cash instead of credit monitoring; no additional action is needed to receive it.
• You can use the card at any merchant that accepts Visa, withdraw cash from ATMs, or transfer the balance to your bank account online.
• The card has an expiration date printed on it, usually three to five years from issue, and you must use or transfer the money before that date or it may be forfeited.
• ATM withdrawals and some transfers may charge fees, so check the fee schedule on the back of the card or the settlement website before you use it.
• If your card is lost, stolen, or damaged, contact the card issuer immediately using the number on the back; replacement cards can take one to two weeks to arrive.

When your card arrives and what to check first

Settlement cards typically arrive four to eight weeks after the claim deadline closes, though timing varies depending on how many people filed and how quickly the settlement administrator processes them. The card comes in a plain envelope with your name and address on it. Open it as soon as it arrives and check that the cardholder name matches your name exactly.

Look at the card itself for the expiration date printed in the bottom right corner. This is the date by which you must use or move the money off the card. Write this date down or set a phone reminder — if the card expires and you have not spent or transferred the balance, you may lose access to the money. The back of the card lists a customer service number; call it if anything looks wrong or if you did not receive a card within two months of the claim deadline.

How to spend the money or move it to your bank

The simplest way to use the card is to spend it like a regular Visa. You can use it at grocery stores, gas stations, restaurants, online retailers, and anywhere else that accepts Visa. There are no fees for purchases, and the balance decreases each time you swipe it. If you want to check your remaining balance, call the number on the back of the card or log into the card issuer's website using the cardholder name and card number.

To move money from the card to your bank account, you have two main options. First, you can withdraw cash from any ATM that displays the Visa or Cirrus logo — most bank and credit union ATMs accept it. ATM withdrawals usually charge a fee of $2 to $3 per transaction, so if you withdraw multiple times, the fees add up. Second, many card issuers allow you to transfer the balance directly to a linked bank account through their website or app, though this may also charge a fee. Check the fee schedule on the back of your card or call customer service to confirm which transfers are free.

Fees and charges you should know about

The card itself is free — there is no monthly fee or activation fee. However, certain uses do charge money. ATM withdrawals typically cost $2 to $3 each, depending on the card issuer and the ATM network. Balance transfers to your bank account may charge a flat fee or a percentage of the amount transferred; this varies by issuer, so call the number on the back of your card before you transfer to find out the exact cost.

Some card issuers charge a fee if you check your balance by phone or if you request a replacement card. A few also charge an inactivity fee if you do not use the card for a long period, though this is less common with settlement cards. The best way to avoid surprise fees is to read the fee schedule that came with your card or call customer service and ask them to list every possible charge. If you plan to withdraw cash, ask specifically whether ATM fees apply and whether any ATMs are fee-free.

What to do if your card is lost, stolen, or not working

If your card is lost or stolen, call the customer service number on the back of the card immediately. The issuer can freeze the card to prevent unauthorized use and issue a replacement. Replacement cards usually arrive within one to two weeks. If you report the card stolen before anyone uses it fraudulently, you are typically not responsible for unauthorized charges, though you should confirm this with the issuer when you call.

If your card does not work when you try to use it — for example, if a purchase is declined or an ATM rejects it — call customer service to troubleshoot. Common reasons include the card not being activated yet (though most arrive activated), the balance being too low for the purchase, or a temporary freeze due to suspicious activity. The issuer can tell you the exact reason and fix it on the spot in most cases. If the card is physically damaged, cracked, or the numbers are worn off, request a replacement card and do not try to use it.

Protecting your card and your money

Treat the settlement card like you would any other debit or credit card. Do not share the card number, expiration date, or the three-digit security code on the back with anyone unless you are making a purchase from a trusted merchant. When you use the card online, make sure the website is secure — look for "https://" at the beginning of the URL and a padlock icon in the address bar. At ATMs, shield the keypad with your hand when you enter your PIN, and use ATMs in well-lit, populated areas.

Keep your card in a safe place at home, and do not leave it unattended in your car or at work. If you are not going to use the card, consider transferring the balance to your bank account as soon as possible — money in your bank account is generally safer than money on a pre-paid card. Write down the customer service number from the back of the card and keep it somewhere you can find it quickly if the card is lost or if you have a problem.

What happens if you do not use the card before it expires

The expiration date on your card is a hard deadline. Once that date passes, the card stops working, and you may not be able to access the money on it. Some card issuers allow you to request a replacement card after expiration, but this process is slow and not may provide. The safest approach is to use or transfer the money at least one month before the expiration date printed on your card.

If you lose track of your card or forget about it, and the expiration date passes, contact the settlement administrator or the card issuer immediately. Explain that the card expired and ask whether the money can be recovered or transferred. Some settlements have provisions to return unclaimed funds to the settlement fund or to state unclaimed property programs, but this process can take months or years. The best protection is to set a phone reminder for one month before the expiration date so you have time to use or move the money.

Frequently Asked Questions

Can I use the settlement card to pay bills or set up automatic payments?

Yes, you can use the card number to pay bills online or by phone just like a regular Visa. However, some billers may not accept pre-paid cards, so if a payment is declined, try a different payment method. You cannot typically set up recurring automatic payments with a pre-paid card because the balance decreases with each charge.

What if I never received my settlement card in the mail?

Call the customer service number listed on the settlement website or in any settlement documents you received. Provide your name, address, and the date you filed your claim. The issuer can check whether the card was mailed and, if it was not, can reissue it. If the card was mailed but lost in transit, request a replacement.

Can I transfer my settlement card balance to someone else's bank account?

No. The card is issued in your name, and transfers can only go to a bank account in your name. If you want to give money to someone else, you must withdraw cash or transfer to your own account first, then give them the cash or transfer it from your account separately.

Do I have to pay taxes on the settlement card money?

This depends on the type of settlement and your personal tax situation. Some settlements are tax-free, while others may be taxable. Check any tax documents that came with your settlement claim or contact the settlement administrator. If you are unsure, speak with a tax professional or call the IRS at 1-800-829-1040.

What if my card is declined at a store?

First, check that you have enough balance on the card by calling customer service or checking online. If the balance is sufficient, the decline may be due to the merchant not accepting pre-paid cards, a temporary freeze on the card, or an error. Try the transaction again, or use a different payment method. If declines keep happening, call customer service to investigate.