A prepaid card lets users spend money loaded in advance without borrowing on credit.
The cardholder or another party adds funds to the account, and purchases reduce that stored balance. Because spending is normally limited to the available amount, a prepaid card does not work like a conventional credit card that creates a borrowing balance.
Prepaid cards may be reloadable or disposable. They can be issued for general spending, payroll, government benefits, gifts, travel, or controlled allowances. Many operate over major payment networks and can therefore look similar to debit or credit cards at the point of sale.
A prepaid card is not automatically a bank account. Consumer protections, fees, reload methods, and deposit-insurance treatment vary by product and jurisdiction. A debit card usually accesses a bank or credit-union deposit account, whereas a prepaid card accesses funds held in a separate prepaid arrangement.