What is a prepaid card and how is it different from a debit card? | Ask Banky

Editor-in-Chief Mohamed Salah

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Editor-in-Chief Mohamed Salah

What is a prepaid card and how is it different from a debit card?

Asked by Banky team 2 months ago
Banky team Reviewed editorial answer

A prepaid card is a card that does not require opening a bank account. You issue it and load it with an amount of money to use for cash withdrawals and purchases until the balance runs out.

A debit card, by contrast, has to be linked to a current or savings bank account and is deducted from that account's balance.

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