These cards either draw on an account or generate a bill at the end of the month. In terms of features, this is where the differences end. There are several additional factors, however, which may influence your decision. The first is that you can pay cash for prepaid cards. This is not the case with standard cards, which often draw directly on a credit card account.
Prepaid cards are also transferable, and can thus be given as gifts.
Well, you may want to think twice before running out to buy armloads of prepaid calling cards. There have been several instances of fraud in the virtually unregulated prepaid calling card market. The fact that you do not receive a detailed bill from these providers can open you up to a host of abuses. For more details on this topic, see our section on The Prepaid Calling Card Industry. Inc. All Rights Reserved.