InvestorQ : Why is a prepaid credit card said to be similar to a debit card?
Kunal Verma made post

Why is a prepaid credit card said to be similar to a debit card?

Answer
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2 years ago


This is very true. A prepaid credit card is, in reality, called to be similar to a debit card and the reason is that it functions like a debit card and not like a credit card.

In a normal credit card, you can swipe your card up to a particular credit limit, as defined by the bank, even when you don’t have that much money in your account. A prepaid credit card, however, don’t have any credit behind them. They are similar to debit cards, because you can use them against your own money and not that of the bank’s.