The Consumer Financial Protection Bureau is a government agency built to protect consumers. Our free resources help you have the information you need to make informed financial decisions.
What is the difference between a prepaid debit card and a credit card?
Answer: Credit cards and prepaid cards differ because when you use a credit card, you are borrowing money. When you use a prepaid debit card, you are spending money that you have put into the prepaid card account.
Even though a prepaid debit card may have a card network logo like Visa, MasterCard, American Express, or Discover on it, it is different from a credit card.
Also, some prepaid debit cards may carry fewer consumer protections in the event of loss or a disputed charge than do credit cards.