Well, they are really the same except that in the case of a prepaid card, you need to load money onto the card before you can start spending and there is no credit. No rocket science involved there.
Prepaid cards work just like a normal debit or credit card, with the exception that all transactions are approved and authorised by the prepaid card provider. So, unlike a debit or credit card, where you could go over you credit limit or overdraft, you are restricted and only able to spend funds that you have available in your prepaid account.
It’s much like a pay as you go mobile phone, where if you run out of credit, you can no longer make calls! Once you have run out of credit in your prepaid account, you need to top-up before you can continue using it.
In actual fact, given that prepaid cards are just like debit or credit cards, you can also top-up your pay as you go mobile phone with your prepaid credit card! No more trips around to the local petrol station to pick-up a top-up voucher!
There are a lot more complicated things in life like trying to arrange online home loans during the recession, understanding debtor finance and factoring, or figuring out what the missus wants but luckily prepaid cards aren’t one of those complications and you can get help with the home loans online and debtor finance and factoring; the missus is an altogether different ball game!
Visit out consumer prepaid card section to find the best prepaid card to suit your needs.