Prepaid card
A prepaid card is a card you load with money in advance and spend only that money. It is not credit and usually not a full bank account: once it hits zero, you cannot pay.
How it works
You load the card by bank transfer, cash, another card or, for crypto cards, from a crypto balance. Then you spend with it like any card, up to the loaded amount. There is no overdraft or credit line, so you usually cannot go negative.
These cards are handy for separating spending: a trip, subscriptions, a teenager, online shopping. Many crypto cards work this way: you move part of your funds to the card balance, and only that balance can be spent.
The downsides are fees for issuing, loading, monthly service or inactivity, plus restrictions. Some hotels and car rental firms do not accept prepaid cards for deposits. How well the money on the card is protected depends on the country and the issuer.
Before a trip you load €500 onto a prepaid card. You spend €420 and €80 is left. A terminal will refuse a €600 payment because the money is not there, and your main account stays out of sight.
Beginners skip the fee table and lose money on small charges: fees for loading, cash withdrawals, currency conversion and inactivity. Before you get a card, find the fee schedule and work out what your normal use will cost. And do not keep more on a prepaid card than you need for upcoming spending.
Questions and answers
What is a prepaid card in simple terms?
It is a card you load first and spend later. You cannot spend more than you put on it.
Do prepaid cards require ID verification?
Almost always, at least a basic check. The higher the load and spending limits, the more documents you will be asked for, because issuers must check their customers.
Can I use a prepaid card for subscriptions?
Usually yes, as long as there is enough money on it on billing day. Some services refuse prepaid cards, especially for deposits or free trials.
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Updated: 2026-10-19