Prepaid cards is one of the newest category of everyday payments products. Prepaid cards are not credit cards.  They are payment cards that can be purchased using cash, checks, or a credit account and offer greater choice, convenience and control over spending in a variety of circumstances where cash, checks or payment vouchers are traditionally used.  Think of prepaid as your "pay before" option, while debit allows you to "pay now" and credit is "pay later."

Prepaid card products bring the utility of electronic payment to situations that traditionally involve cumbersome and labor-intensive cash, checks or paper vouchers.  Prepaid products are ideal for situations where traditional bank accounts may be difficult to establish or may not even be appropriate, as with gift cards or money transfer.

Around the world, prepaid cards are issued by a wide range of organizations for different purposes.  Some prepaid cards are issued by proprietary organizations such as department stores or retailers and can be used only within the issuers' business premises; while other prepaid cards may be issued by banks and carry international card brands logos and may be used internationally.

Some types of prepaid cards available:

Travel.  Prepaid travel cards allow consumers to make purchases internationally and provide 24-hour access to funds in any local currency while offering protection from theft or loss.

Gifts and Promotions.  Gift cards are faster and safer for consumers to use and are more cost-effective for merchants to manage than traditional paper-based gift certificates and vouchers.

Several renowned department stores and shopping malls in Malaysia offer such cards to customers.

Employee Payroll and Expenses.  Payroll cards are currently offered in some countries such as the US and Russia, and help employers reduce paycheck costs and allow workers without a banking relationship to eliminate the cost, inconvenience, and security problems of check-cashing and carrying large amounts of cash.

Phone. Phone cards are one of the most common types of prepaid cards in Malaysia.They are issued by fixed line and mobile phone operators as well as public phone operators.You can choose the prepaid amount you want or whether you want a local or international phone card.

Money Transfer.  For instance, students use it to receive money from their parents in lieu of the more cumbersome, expensive process of telegraphic transfers or other traditional funds transfer methods.

Government Benefits.  The Muscovite Social Card in Russia offers Moscow pensioners a convenient way to ride the subway, access healthcare benefits, and pay for their everyday expenses.

Money Management for Young Adults.  In the US, some reloadable prepaid cards are designed for teens to use for general spending and emergencies, and to help them build money management skills.