A prepaid card is a type of payment card that can be loaded with money in advance and then used to purchase goods or services without incurring debt from the issuer. The most common type of prepaid cards is a prepaid debit card (which acts like making bank account withdrawals when purchasing goods and services).
- ATM access: Some prepaid cards only allow in-network ATM withdrawals for free, meaning at the issuing bank or financial institution’s branch network. - Reload options: A prepaid card generally allows you to add money to your balance in multiple ways.
A prepaid card is often as good as cash, though sometimes even better, such as when: - You don’t want to carry cash around; prepaid cards offer certain consumer protections about theft and misappropriation of assets, which cash simply cannot - Prepaid debit cards can be used to make online purchases