How do prepaid credit cards work?

So how exactly do prepaid credit cards work? You get one at your local WalMart or Rite Aid and then you give the cashier the amount of money you want put into the card? Is that really all there is to it? Nothing like a real credit card, obviously, right?

And do these work with online transactions?

Excuse my ignorance, I’m clearly quite a dud when it comes to this kind of stuff. Thanks in advance!

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3 Comments for “How do prepaid credit cards work?”

  1. hotpinkmegan

    Well normally you can biy them at a set price. Thats what i do

  2. furaha

    credit card is like a loan. they give an estimate of the duration u should pay back. you can use the card on anything but when the money in the card finishes you cant purchase anything and if you dont pay the used amount at the set time the card is terminated. that the simply way i can say.

  3. Peter Robinson

    Prepaid credit cards do work exactly the same as post-pay (or “real” credit cards) although obviously there’s no credit involved.

    What you credit to the card when you buy it (or later ‘load’ onto it which you can do with some) is what you can spend. The UK versions certainly work fine online.

    They’ve all got different selling points (advantages and disadvantages) depending whether you want to use them to buy from abroad. Their charging structures vary between cards, so compare what these and depending what your spending profile is you can make an informed choice.

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