Prepaid cards are electronic cards which allow card holders to access funds deposited to an account. A prepaid card can be used to withdraw money or pay for goods and services.
Unlike a credit card, which extends a line of credit, prepaid cards are more similar to debit cards. Prepaid card holders can only spend the money they load on the card. Since no credit is extended to prepaid card holders, interest and overdraft fees are avoided.

Prepaid cards are often used by those who dont qualify for a checking account or credit card, usually because of bad credit or other reasons. However, prepaid cards can be beneficial to others as well.