The term 'prepaid cards' falls under which category?

The term 'prepaid cards' is classified under debit cards because they allow users to load a specific amount of money onto the card before it can be used for transactions. This means the spending is directly linked to the balance that has been prepaid, similar to how debit cards function, which access available funds in a bank account.

A prepaid card does not operate like a credit card where users can borrow money up to a certain limit, nor does it function like a charge card that requires payment in full each month. While prepaid cards often resemble gift cards, they can be reloaded with additional funds and used repeatedly, differentiating them from typical gift cards that are preloaded with a set amount and are typically not refillable.