A prepaid card, also called a pay-as-you-go card, is a product that only lets you spend money you've loaded onto it in advance. Instead of borrowing money from a bank that you must pay back later (as with a credit card), you are spending your own preloaded money. One of the conveniences of prepaid cards is that they are available almost anywhere, from grocery stores to gas stations, and you can use them anywhere their (such as Visa or Mastercard) is accepted.Using prepaid cards is very simple. You just need to load the amount of money you want to have available for purchases onto the card; then, as you use the card, keep an eye on your balance to be sure it will cover the purchases you want to make.
Unlike a debit card, a prepaid card is not linked to a bank account. This means that instead of drawing money out of your account with each purchase, you are drawing from a balance preloaded onto your prepaid card. With a prepaid card, even if you have thousands of dollars in your bank account, you can be limited to the amount preloaded on your card. In contrast, a debit card draws money directly from your account to pay for purchases, so you do not need to preload it with cash.