 TITLE: What Is a Prepaid Card? CONTENT: How Do Prepaid Debit Cards Work?\n--------------------------------\nWhile prepaid cards look a lot like traditional credit cards or debit cards—and many credit card issuers, like Visa, American Express and Mastercard, offer them—the similarities end there. The biggest difference is that a prepaid card must be loaded with funds before you can use it.\nPrepaid cards are sold at retailers like supermarkets and gas stations, and you can also order them online or get them at participating banks. You can specify the amount of money you want loaded on the card, though there may be daily, weekly or total limits to the amount you can add (these limits may be waived when you receive a direct deposit of funds to the card). Cards may be for one-time use, like gift cards, or reloadable.\nUnlike a credit card, you don't need to pass a credit check to receive a prepaid debit card. You won't pay interest on purchases, because they'll be debited from the amount you've added to the card. These cards don't allow you to carry a balance or to pay off your purchases over time.\nPrepaid cards also come with multiple fees to watch out for, such as fees for activating the card and loading and spending money, which you may not find on a debit or credit card. You could also pay fees for monthly maintenance, some ATM withdrawals and international transactions. END