What a Loft Card payment is and who makes them

A Loft Card is a prepaid card issued by Loft, a financial services company, that works like a debit card for everyday purchases. When you use the card, you're spending money you've already loaded onto it — there's no credit line or debt involved. Payments to a Loft Card mean adding money to the card's balance so you can use it to buy things.

You load money onto your Loft Card yourself through several methods. The card issuer controls which payment methods work, and those options can change. The most common ways to add funds are direct deposit from your employer or bank account, bank transfers, or transfers from another card you own.

Loft Cards are used by people who want a simpler alternative to a traditional bank account, those who don't have access to a bank account, or people who prefer to control spending by only loading money they plan to use. The card comes with a monthly fee structure that varies depending on which Loft Card product you hold.

Key Takeaways

  • You add money to your Loft Card through direct deposit, bank transfers, or card-to-card transfers, depending on which payment methods your card issuer supports.
  • Monthly fees for Loft Cards typically range based on the account type, and some accounts waive fees if you meet deposit requirements.
  • When your Loft Card balance reaches zero, transactions will be declined unless you reload funds or have overdraft protection enabled.
  • Loft Cards do not report payment history to credit bureaus, so using one does not build or damage your credit score.

How to load money onto your Loft Card

The most straightforward way to add funds is through direct deposit. If your employer or a government agency (like Social Security) sends you regular payments, you can set up direct deposit to your Loft Card. You'll need to provide your card's routing number and account number to your employer or the paying agency. Money typically arrives within one to two business days of the scheduled payment date.

You can also transfer money from a bank account you own using ACH transfer (Automated Clearing House). This is a free electronic transfer between your bank and your Loft Card. Log into your Loft Card account online or through the mobile app, select the transfer option, enter your bank account details, and choose the amount. The transfer usually takes one to three business days.

Some Loft Card products allow card-to-card transfers, where you add funds using another debit or prepaid card you own. This method is faster than ACH — sometimes when ready — but may carry a small fee. Check your card's terms to see if this option is available and what the cost is.

You may also be able to add money at retail locations that partner with Loft or its parent company. This typically involves paying cash at a store counter, though fees explore. The availability of this option depends on your specific card product and your location.

Monthly fees and when they explore

Loft Cards charge a monthly maintenance fee that varies by card type. Some basic Loft Card products charge between $5 and $10 per month, while premium versions may cost more. The exact fee depends on which Loft Card you hold, as the company offers different account tiers with different features and costs.

Many Loft Card accounts waive the monthly fee if you meet certain conditions. Common fee-waiver requirements include receiving a direct deposit of a minimum amount each month (often $500 or more) or maintaining a minimum balance. Check your card's fee schedule and account terms to see what applies to your specific card.

Beyond the monthly fee, you may encounter other charges: ATM withdrawal fees (especially at out-of-network ATMs), foreign transaction fees if you use the card outside the United States, expedited card replacement fees, or inactivity fees if you don't use the card for a long period. Each of these varies by card product.

What happens when your Loft Card balance is zero

When you spend all the money on your Loft Card, the card stops working for purchases. Any transaction you attempt will be declined — the merchant's system will reject it, and you won't be charged. This is different from a credit card, which would allow you to borrow money and carry a balance.

Some Loft Card products offer overdraft protection, which allows you to spend slightly more than your balance and go negative temporarily. If your card has this feature, you'll be charged an overdraft fee (typically $15 to $35 per overdraft) and will need to reload funds to bring your balance positive again. Not all Loft Cards include overdraft protection, so check your account terms.

If you don't reload your card and your balance stays at zero, there are no ongoing penalties beyond the monthly maintenance fee (if your account charges one). However, if you have overdraft protection enabled and you go negative, you'll owe the overdraft fee plus the negative balance amount.

Loft Card payments and your credit score

Using a Loft Card does not build or hurt your credit score because prepaid cards are not credit products. Credit bureaus track credit accounts — credit cards, loans, mortgages — where you borrow money and pay it back. A Loft Card is your own money, so there's nothing to report to the credit bureaus.

This means that even if you use your Loft Card responsibly for years, that history won't show up on your credit report or help you build credit. If you're trying to build or repair your credit, a Loft Card alone won't help. You would need a credit-building product like a secured credit card or a credit-builder loan.

However, if your Loft Card account goes into overdraft and you don't pay the negative balance, the card issuer could send the debt to a collection agency. That collection account would appear on your credit report and damage your score. Keeping your balance positive or paying overdraft fees promptly prevents this outcome.

Comparing Loft Card to other prepaid and bank accounts

Loft Cards are one option among several for managing money without a traditional bank account. A traditional checking account at a bank typically has lower monthly fees (or no fee), includes FDIC deposit insurance up to $250,000, and offers more ways to access your money. The trade-off is that banks may require a minimum balance or have stricter account opening requirements.

Other prepaid card companies like NetSpend, Chime, and Gobank offer similar features to Loft — you load your own money and spend it. Fees, reload methods, and features vary widely between providers. Some prepaid cards offer no monthly fee if you meet deposit requirements, while others charge consistently. Comparing the fee structure of cards you're considering helps you find the lowest-cost option for your situation.

Mobile payment apps like Cash App, Venmo, or PayPal also let you store money and make purchases, though they're designed more for peer-to-peer transfers than everyday shopping. These apps typically don't charge monthly fees but may charge for certain features like when ready transfers.

Troubleshooting common Loft Card payment issues

If a direct deposit or bank transfer to your Loft Card doesn't arrive on time, first check that you entered the correct routing and account numbers. A single digit wrong will send the money to the wrong place. Contact your employer or the paying agency to confirm they have the right information on file. If the information is correct, contact Loft customer service — delays sometimes happen on the bank's side and can take up to five business days to resolve.

If you're trying to reload your card and the transaction is declined, the issue is usually with the source account or payment method. Your bank account may not have enough funds, or your card issuer may have flagged the transfer as suspicious. Try a different reload method, or contact Loft to ask if there's a hold on your account.

If you're charged a fee you don't think you should owe, review your account statement and the fee schedule in your card's terms. Some fees are automatic (like monthly maintenance), while others are triggered by specific actions (like ATM withdrawals). If you believe a fee was applied in error, contact Loft's customer service with your statement as proof.

Frequently Asked Questions

Can I set up automatic payments from my Loft Card?

Yes, you can use your Loft Card like any debit card to pay bills online or set up automatic recurring payments. You'll need your card number, expiration date, and CVV. Not all merchants accept prepaid cards, so test the card with a small purchase first if you're unsure.

What's the difference between a Loft Card and a gift card?

A Loft Card is reloadable — you can add money to it repeatedly and use it indefinitely. A gift card is typically one-time use and expires after a set period. Loft Cards also come with a routing and account number for direct deposits and transfers, which gift cards don't have.

Do I lose money if I don't use my Loft Card?

You won't lose the money you've loaded onto the card. However, if your account is inactive for a long period (usually 12 months or more), some Loft Card products charge an inactivity fee that reduces your balance. Check your card's terms for the specific inactivity policy.

Can I get my money back if I close my Loft Card account?

Yes. When you close your account, any remaining balance can be transferred to a bank account you own or issued as a check. Contact Loft to request the withdrawal method you prefer. The process usually takes five to ten business days.

Is my money safe on a Loft Card?

Loft Cards are not FDIC insured like bank accounts are, so your money is not protected by federal deposit insurance if the card issuer fails. However, prepaid card companies are required to hold customer funds in segregated accounts, which provides some protection. Review Loft's privacy and security policies to understand how your information is protected.