In its most basic form a "Prepaid Card" is a card that can store value. There are typically two types of Prepaid Card, "Closed Loop" which is a card that can be used a a restricted number of retail locations or sites, and "Open Loop" which are aligned with a scheme partner such as MasterCard, Visa and American Express.
An "Open Loop" prepaid card has the look and feel of a credit or debit card, however, it does not allow the customer to go overdrawn, or be forced into credit.
There can therefore be no penalties or related interest charges which may accrue from a credit card. Instead, the customer loads on money (from various sources like payroll, bank transfer, or using a retail cash load partner locally) and then uses it in-store, online, and even to withdraw cash at an ATM whereever the scheme chosen acceptance marks are accepted.