A prepaid card is a card you can use to pay for things. You buy a card with money loaded on it. Then you can use the card to spend up to that amount. A prepaid card is also called a prepaid debit card, or a stored-value card. You can buy prepaid cards at many stores and online.

A prepaid debit card is much like a gift card: It allows you to spend whatever amount of money is stored on the card. You can reload the card online or at an ATM, a participating store, or another physical location when the balance is used up.

Make everyday spending more convenient and secure The all-purpose Visa Prepaid card is a reloadable card you can use in-person and online to: Pay bills. Add funds. Make purchases anywhere Visa Debit cards are accepted.

This can be confusing because both types of cards may have a card network logo such as Visa, MasterCard, American Express, or Discover on them. When you use a credit card, you are borrowing money. Generally, when you use a prepaid card, you are spending money you have already loaded onto the card in advance.

Types of Prepaid Cards It can be used for online purchases, cash withdrawals, and payments at merchants who accept RuPay. This card can be loaded with a maximum of Rs. 1 lakh and has a validity of 3 years. The card can be recharged several times, and cash withdrawals from ATMs are also permitted.

What Is a Prepaid Card? Prepaid cards are technically a type of debit card. Issued by a financial institution or credit card company - Visa, MasterCard, and Discover all offer them - they are deposited or "loaded" with a certain amount of money.

Prepaid cards and debit cards are both widely accepted at merchants worldwide, but one is preloaded and the other is not. Debit cards are linked to a checking account, while prepaid cards aren't and instead require you to load money onto the card.

The Pros & Cons of Using a Prepaid Card

• Easy to get. You can buy them almost anywhere.
• Easy to use. You can use them pretty much everywhere.
• Safer. If you lose cash, it's limited.
• No credit check. This is a plus for those with less-than-stellar credit histories.
• Budgeting tool.
• No bill.
• No bank account.
• No debt.

Debit cards are linked to a checking account, while prepaid cards aren't and instead require you to load money onto the card. Neither card helps you build credit, but despite this drawback, both prepaid cards and debit cards can help you manage your money in different ways.

When you pay with a prepaid card at a retail location with a PIN pad, you may have the option to choose whether to run the card as “credit” or “debit.” If you choose “debit,” you enter the PIN you created when you registered your card.

• Best overall prepaid debit card. Serve American Express Card.
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• Best low-fee prepaid debit card.
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Debit cards are linked to a checking account, while prepaid cards aren't and instead require you to load money onto the card. Neither card helps you build credit, but despite this drawback, both prepaid cards and debit cards can help you manage your money in different ways.

There are only a few downsides to using prepaid cards, but they are significant. Prepaid cards come with fees. Cardholders may have a lot of fees, including activation fees, transaction fees, ATM withdrawal fees, reloading fees, monthly fees, or inactivity fees. Check the fine print on the card for fee types.

Prepaid debit cards: No bank account is required. You load money onto the card via cash, checks, direct deposit or a transfer from another account before paying for purchases or making other transactions. Generally, you can't spend more than the amount of money you have loaded onto the card.

The answer is yes, while Visa gift cards can typically be used internationally, it's essential to check the terms and conditions of the specific card before attempting to use it abroad. Some restrictions may apply, including limited acceptance or additional fees for foreign transactions.

The biggest difference between the two reflects their permanence: prepaid cards can be reloaded and used indefinitely, while gift cards can generally only be used until the dollar amount on them is exhausted.