How long does an account need to be inactive before this fee applies?

This varies by provider, but common thresholds fall somewhere in the range of several months to about a year of no transaction activity. Checking a specific card’s terms is the only reliable way to know the exact threshold.

Does checking my balance count as an activity that avoids the fee?

Often, no. Many providers require an actual transaction, such as a purchase or withdrawal, rather than just a balance check, to count as activity that resets the inactivity period. Confirming this with a specific provider avoids a misunderstanding.

Can I get an inactivity fee refunded if I didn’t realize my card was subject to one?

Some providers may refund a fee as a courtesy, particularly for a first occurrence, though this isn’t guaranteed. Contacting the provider directly and explaining the situation is worth trying before assuming the fee is unrecoverable.

Back to Glossary

What is inactivity fee?

Key takeaways
- An inactivity fee is charged when a card or account isn’t used for a set period of time.
- It’s common on some prepaid cards and less common on standard bank accounts.
- The fee typically starts after a specific number of months without any transaction.
- Recipients who only access a prepaid or benefits card occasionally, such as when a transfer arrives, are at particular risk of this fee.
- A small, routine transaction, or a switch to direct deposit into a checking account, can help avoid inactivity fees entirely.

An inactivity fee is charged when a card or account isn’t used for a set period of time. Here’s how it works, and why it’s worth knowing about for anyone using a prepaid card.

What is an inactivity fee?

An inactivity fee is a charge some prepaid card or account providers apply after a set period, often measured in months, during which no transactions occur on the account. It’s designed to offset the cost of maintaining an account that isn’t generating any activity, and it can quietly reduce a balance that’s simply being held rather than actively used.

Why inactivity fees matter for your finances

Most content describes inactivity fees in a general banking context, but the risk is more specific for people relying on a card that isn’t used regularly:

It typically requires a specific period of no activity. The exact threshold varies by provider, but a card that goes unused for several months is a common trigger.
Recipients who only access a card occasionally are at real risk. A card used only when a transfer arrives, with infrequent transfers, can accumulate an inactivity fee between uses.
A small, routine transaction can reset the clock. Using the card for even a minor purchase periodically typically prevents the fee from being triggered.

How to avoid inactivity fees

Make a small purchase periodically, even without actively spending down the balance, to keep the account showing activity.
Check a specific card’s inactivity policy, since the threshold and fee amount vary by provider.
Consider a checking account with direct deposit instead, if a card is used so rarely that inactivity fees become a recurring issue.

Inactivity fees and international money transfers

For recipients who only access their prepaid or benefits card when a money transfer arrives, inactivity fees can quietly reduce the balance between transfers, especially if remittances are sent only occasionally rather than on a frequent schedule. Checking a provider’s fee schedule before relying on a specific card, the same principle that applies to any financial account, matters just as much for a personal prepaid card used to receive transfers.

The CFPB’s prepaid rule⁠(opens in new window) requires clear, upfront fee disclosures for prepaid accounts, which means the specific inactivity fee terms, if any apply, should be disclosed before choosing a particular card, providing the information needed to compare options and avoid a surprise.

What typically counts as “activity” to avoid the fee

Card issuers generally define qualifying activity fairly broadly, including a purchase, a balance transfer, an ATM withdrawal, or in some cases even a customer-initiated balance check through an approved channel, though this last one varies by issuer and isn’t always included. What usually doesn’t count is simply having a balance sit untouched, or the issuer’s own periodic account maintenance actions. Because the exact definition varies between providers, reading the specific cardholder agreement, or asking customer service directly, is the only reliable way to know exactly what will keep a specific card active without heavy regular use.

Why inactivity fees are especially relevant for irregularly used cards

A card used only occasionally, such as one kept specifically for irregular income like a seasonal job, or one used solely to receive occasional transfers from family abroad, is exactly the kind of account most likely to trigger an inactivity fee, since it may sit untouched for months at a time between transactions. Setting a calendar reminder to make at least one small qualifying transaction periodically, or checking whether the card can be linked to a small recurring subscription payment specifically to maintain activity, is a simple, low-effort way to avoid the fee entirely for a card like this.

Common questions about inactivity fees

How long does an account need to be inactive before this fee applies?

This varies by provider, but common thresholds fall somewhere in the range of several months to about a year of no transaction activity. Checking a specific card’s terms is the only reliable way to know the exact threshold.
Does checking my balance count as an activity that avoids the fee?

Often, no. Many providers require an actual transaction, such as a purchase or withdrawal, rather than just a balance check, to count as activity that resets the inactivity period. Confirming this with a specific provider avoids a misunderstanding.
Can I get an inactivity fee refunded if I didn’t realize my card was subject to one?

Some providers may refund a fee as a courtesy, particularly for a first occurrence, though this isn’t guaranteed. Contacting the provider directly and explaining the situation is worth trying before assuming the fee is unrecoverable.

In Summary

An inactivity fee can quietly erode a balance that’s simply being held between uses, and this risk is particularly relevant for recipients who only access a card occasionally when a transfer arrives. A small, periodic transaction, or choosing an account with more favorable terms, helps avoid this cost entirely.

This publication is provided for general information purposes only and is not intended to cover all aspects of the topics discussed herein. This publication is not a substitute for seeking advice from an applicable specialist or professional. The content in this publication does not constitute legal, tax, or other professional advice from Remitly or any of its affiliates and should not be relied upon as such. While we strive to keep our posts up to date and accurate, we cannot represent, warrant, or otherwise guarantee that the content is accurate, complete, or up to date.