what is a prepaid card account
DEFINITION of 'Prepaid Credit Card'. A card issued by a financial institution that is preloaded with funds and is used like a normal credit card. A prepaid credit card works in the opposite way of a normal credit card, because instead of buying something with borrowed funds (through credit), you buy things with funds that have already been paid. This card functions like a gift card. BREAKING DOWN 'Prepaid Credit Card'.