How does a prepaid card differ from a debit or credit card?

A prepaid card differs from a debit or credit card because it's not linked to a bank account or a line of credit; instead, it uses a preloaded balance, meaning you can only spend what you have on the card and cannot go into debt. With a debit card, you are spending money you have in your bank, while a credit card allows you to borrow money that you repay later, often with interest.