What is a prepaid card? How they work and who uses them
By SendPay Business · · 2 min read
A prepaid card spends money that's been loaded onto it in advance. It works like a debit card in shops and online, but it isn't linked to a bank account and can't go overdrawn, so you can only spend what's on it.
Prepaid, debit and credit
- Prepaid: spends a balance loaded in advance.
- Debit: spends money straight from a bank account.
- Credit: borrows money that's paid back later.
Who uses them
People who want a firm limit on spending, parents giving children pocket money, travellers loading currency before a trip, businesses giving staff cards for expenses, and people who can't easily open a bank account.
What to check
Look at the fees for buying the card, loading money, spending abroad and taking cash out, and check how the balance is protected. Money on e-money prepaid cards is usually safeguarded rather than covered by deposit protection.
Launching your own
Brands launch prepaid and debit cards through licensed issuing partners and put their own design on them. SendPay Cards platforms, powered by licensed partners, are free to design, with virtual cards at 20p each and physical cards at £4 plus shipping.
Build it
Create your own financial platform.
Pick a template, name it, brand it, preview every page before you pay. Your brand, your users, your fees.
Build my platform →Questions people ask
What does a prepaid card cost in a year?
Add up its fees with the free calculator.
Prepaid card cost calculator →Read next
This guide is general information, not legal or financial advice. SendPay Business is a technology company, not a bank, and does not take deposits; regulated services on the platforms are provided by licensed partners. PayPal, Patreon and Substack are named as reference points only and are not affiliated with SendPay Business.