What is a card that is preloaded with a cash amount and functions like a credit card?

A card that is preloaded with a cash amount and functions like a credit card is known as a prepaid card. This type of card allows users to load a specific amount of money onto the card, which can then be used for transactions until the balance runs out. Unlike credit cards, which allow users to borrow funds up to a limit and pay them back later, prepaid cards require you to spend only the amount you have preloaded. They can be used at various retailers and online, just like credit and debit cards, making them versatile for everyday use.

Prepaid cards are particularly useful for budgeting, as they help individuals limit their spending to the funds available on the card. They can also serve as an alternative to traditional banking methods for those who may not have access to a bank account or credit history.