Are Prepaid Debit Cards Safe for Everyday Purchases? 

Prepaid cards, which are sometimes mistakenly referred to as prepaid debit cards, are a viable option for unbanked individuals as they are easy to obtain, more convenient than cash, and allow spending only the amount loaded onto them. It's important to note that prepaid cards and debit cards are two separate products. However, for the sake of this article, we'll be referring to prepaid cards as "prepaid debit cards," as although incorrect, this term is commonly used by consumers to identify the product at hand. The critical question is—are prepaid debit cards safe? You will find the answer in this guide and also learn the following:

• How prepaid debit cards work 
• How you can acquire a prepaid debit card
• What the benefits and limitations of prepaid debit cards are

How Do Prepaid Debit Cards Work?

Prepaid debit cards are payment cards that you can load with money and use until the funds are depleted. They are branded by major credit card companies such as Mastercard^®, Visa^®, or Discover^®, and you can purchase them at banks, select retailers, credit card companies, or other financial institutions. Once you spend all of the funds on your prepaid debit card, you can typically reload the card online, at an ATM, a participating store, or another physical location.

A prepaid debit card works in a similar way to a regular debit card. You need to enter its 16-digit card number, CVC code, and expiration date during checkout to complete online transactions. For in-store purchases, you need to provide a four-digit PIN at a POS terminal. The card issuer typically allows you to set the PIN when registering your card. 

Besides online and in-store purchases, you may also use the cards to withdraw cash from ATMs, pay bills, transfer funds, or receive direct deposits from your employer. 

How To Get a Prepaid Debit Card?

Below, you can find various methods on how to obtain a prepaid debit card at participating locations: