What happens when you use a prepaid card?

Using a prepaid card means you have loaded a specific amount of money onto the card prior to making purchases. This means you can only spend the funds that you have added to the card, as it does not have a credit line like traditional credit or debit cards. Once the prepaid balance is depleted, you cannot make additional purchases without reloading the card with more funds. This feature helps users manage their spending more effectively, providing a budget-conscious approach to spending.

In contrast, other options suggest benefits or scenarios that do not apply to prepaid cards. Interest charges are typically associated with credit cards that allow borrowing beyond the current balance, while rewards programs and cashback offers are more commonly linked to credit cards and some debit accounts rather than prepaid cards.