How does a prepaid card compare to a debit or credit card?

Debit and credit cards have been around for many years, but prepaid are still new on the scene. So what are the main differences between them?



Debit
Credit
Prepaid
Credit Check
A credit check is performed against the bank account to which the card is linked.
A credit check is performed to approve the initial card application, decide the overall limit of the card and to set the interest rate.
No credit check is performed. (An identity check may be performed to verify where to send the card.)
Line of credit
The bank account to which the card is linked, can have an overdraft facility
A line of credit is integral to the product. This can be increased over time, though this is dependant on how the card is managed.
No line of credit (means no borrowing and no debt)
Interest
Interest is charged on the money borrowed against an overdraft, with no interest free period
Interest is charged on the money borrowed up to the credit limit, if there is an outstanding balance after any interest-free period.
No interest charges.
Fees
Fees if you exceed an agreed overdraft, or foreign exchange fees. Also additional fees such as duplicate statement fees.
Charges such as late payment fees, over-limit fees,  cash advance fees, foreign exchange fees, duplicate statement fees and non-activity fees. These are explained for each card product.
Fees may be charged depending on the card. Read T&C’s carefully where they will be carefully explained.
Cardholder info
Requires full cardholder information
Requires full cardholder information
Only require basic cardholder information.
Usage
Can be used anywhere MasterCard / Visa is accepted
Can be used anywhere MasterCard / Visa is accepted
Can be used anywhere MasterCard / Visa is accepted
Cash Machine
Can be used at a cash machine.
Can be used at a cash machine.
Can sometimes be used at a cash machine.
Lost / Stolen
Can be cancelled / blocked if lost or stolen
Can be cancelled / blocked if lost or stolen
Can be cancelled / blocked if lost or stolen