In simplest terms, a prepaid card is like a debit card that is not tied to your bank account: You preload it with funds and add more as needed. coverage on balances and no liability if they’re lost or stolen. But now, thanks in part to advocacy work by Consumer Reports and other consumer groups, many of the cards have affordable fees (or none at all) and voluntarily offer the same consumer protections as debit cards, including Federal Deposit Insurance Corp. In fact, in 2010, we did not recommend them because of their high fees and inadequate consumer protections. Not that long ago, prepaid cards were a fee-laden payment method of last resort for people without credit cards or bank accounts. If a $100 bill had a love child with a credit card, their progeny could very well be a prepaid card-a money tool that combines the ease and versatility of plastic with the freedom from fees of cash.
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