Prepaid debit cards have become increasingly popular as credit markets tighten and consumers search for alternative ways to manage their budgets. While prepaid debit cards provide all the flexibility of paying with plastic, there are some major differences you must take into consideration.
Unlike traditional credit cards, prepaid debit cards require a cash deposit into an account, much like a deposit you would make to a regular checking or savings account. And when the money is spent, there's nothing more to spend until you make another cash deposit.