How do prepaid cards work?
Essentially, prepaid cards look the same as any other card; they have a magnetic strip, chip, long number on the front and a familiar logo such as MasterCard or Maestro.
Appearances can be deceiving though. Although looking the same as a credit or debit card (you even get your own PIN as you would for another card), a prepaid card does not let you spend from your current account, nor does it let you pay for goods by using a pre-agreed credit facility.
Instead, you load money onto the card (how much is up to you, although there’s usually a minimum and maximum amount you can pre-load), and then you use the card to spend money in the same way you’d spend using a credit or debit card.
Once the money on the card runs out, you can’t spend any more until you have uploaded some more funds