A prepaid card is a payment card you load with money before you spend. You can only use what is on the card, which makes it easier to stick to a budget, give controlled spending to someone else, or keep online purchases separate from your main account.

What is a prepaid card?

A prepaid card holds a balance that you add in advance. When you pay in a shop, online, or at an ATM (if the card allows withdrawals), the amount comes off that balance. There is no credit line and no bill at the end of the month: when the balance runs out, the card stops working until you top it up again.

Prepaid cards are issued by banks and payment companies and usually run on major networks such as Mastercard or Visa. They can be physical plastic, virtual-only, or both. Some are anonymous gift cards with a fixed value; others are reloadable accounts tied to your identity, similar to a simplified bank account.

How prepaid cards work

The flow is straightforward: load funds, spend, reload when needed.

• Load: You transfer money onto the card via bank transfer, cash at a retail location, or in an app, depending on the product.

• Spend: Payments work like a debit card at merchants that accept the network. Some prepaid cards support contactless payment.

• Limits: Issuers often cap the maximum balance and daily spending. These limits vary by product and country.

Because there is no borrowing, prepaid cards do not build credit history. They are a spending tool, not a loan product.

Prepaid card vs. debit card

Both spend money you already have, but they connect to your money differently.

• A debit card is linked directly to your Bank Account. Every payment pulls from that account (or a linked pocket) in real time.

• A prepaid card holds its own balance on the card program. Your main account is separate unless you move money over to reload it.

Prepaid cards can help you ring-fence a budget. Debit cards are simpler for day-to-day banking when you want one account, instant overview, and full payment features.

Budgeting without a separate prepaid product

You do not always need a standalone prepaid card to get the same control. With bunq, Budgeting tools and Money Pockets let you set aside money for groceries, travel, or subscriptions, then spend from that pocket with a normal debit or Credit Card. You see your balance in the app, get Instant Notifications, and can freeze a card if you need to stop spending fast.

Common questions

Can I use a prepaid card abroad?

Often yes, if the card network is accepted and the issuer allows international use. Watch for FX fees and ATM restrictions. With a bunq account, zero-fx on supported currencies can be cheaper than many prepaid travel cards for everyday spending.

Are prepaid cards safe for online shopping?

They can limit exposure because only the loaded balance is at risk. For extra safety online, many bunq users create a Digital Card with its own details and spending limit instead of using their main card number.

Do prepaid cards affect my credit score?

Generally no. Prepaid cards are not credit products, so issuers usually do not report them to credit bureaus. They are for spending control, not building credit.