If you are interested in a prepaid credit card, you should clarify a few questions. You don’t get a real “credit” with this type of card, for example.
Applying for a prepaid credit card can often make sense. In principle, we would advise you to apply for a conventional card in our credit card comparison. But a prepaid credit card can also be attractive – at least under certain conditions. In this guide, we want to clarify the most important questions about prepaid credit cards for you.
What is a prepaid credit card?
First, we want to briefly explain what a prepaid credit card actually is. Basically, it is a kind of “credit card” on a credit basis (prepaid). This is already charged or needs to be charged before it can be used.
Unlike normal credit cards, a prepaid credit card does not have a credit limit or limit (despite the name). Rather, you can only spend as much money as you have previously loaded onto your card. The expenses are debited directly. There is no risk for the bank. That is why, for example, pupils, students and the unemployed can also apply for prepaid credit cards.
N26 prepaid credit card video explanation:
Wrongly referred to as a prepaid credit card, special card types are also being used again and again today, which are actually a giro card card with a credit card function. With direct banks, for example, there are some credit cards that are debited directly from the current account. These are incorrectly referred to as prepaid credit cards, even though they don’t need to be loaded before payment can be made. These are mostly debit cards.
In this case, the debit is made directly from the current account. You can therefore only pay by card if there is still credit in the bank account . In some cases, such a credit card also works in combination with the overdraft facility in your checking account. However, this always depends on the specific conditions (status: 01/2022).
What is the difference between prepaid credit cards and conventional credit cards?
If you look around in our credit card comparison, you will quickly notice that normal credit cards and the corresponding prepaid versions look very similar at first glance. Except for an imprint “Prepaid” you will probably not see any difference on the outside. But the “inner values” of a prepaid credit card are very different from a conventional credit card with a limit . First and foremost, this is because you don’t get any credit. The actual purpose of a real credit card is thus a little undermined.
With a prepaid credit card, you have to load money before using it. With a conventional credit card, on the other hand, you pay first. The costs are usually only debited later. This means that you also have significantly less financial leeway with a rechargeable credit card. In addition, there are other disadvantages associated with this functional deficit. As a rule, you cannot use a prepaid credit card to make hotel reservations or to provide a guarantee for a rental car. Basically, a conventional credit card is therefore recommended. But there are also reasons for a prepaid credit card (see below for more on this).
Good to know: You can buy prepaid cards in brick-and-mortar stores, for example, with which consumers can pay completely anonymously. However, these and similar cards can also have limits on top-ups, withdrawals and payments.
Where can I get a prepaid credit card?
You can get a prepaid credit card in many ways. If you want to get a card safely and conveniently, we recommend applying in our credit card comparison fromzahlen.de. You also have the following options, among others:
In supermarkets or at gas stations you sometimes “only” get virtual credit cards. You can only use this on the Internet. In addition, some of these credit cards can only be loaded once and are then worthless. In addition, the conditions of these cards are usually much worse. In the event of non-use, for example, fees may apply.
You can also apply for such cards at your house bank. However, our credit card comparison gives you a better overview of the various providers and their services. With branch banks, however, you will have to cope with slightly worse conditions (as of 01/2022).
Which credit card issuers produce prepaid credit cards?
Basically, you can apply for credit cards at different banks. In addition, several providers in supermarkets or petrol stations are trying to win your favor. Basically, you should choose a product from a reputable bank. Many large banks have offers of this type and offer you a prepaid credit card as an alternative to conventional models. In our comparison you also get a good overview of the various alternatives of the well-known German banks.
Basically, you can choose between a Visa or a Mastercard credit card. Most banks offer you either a Visa or Mastercard card as a prepaid model. In general, there are no prepaid credit cards from American Express . You should also keep in mind that you can apply for a credit card – not even a prepaid credit card – directly from Visa or Mastercard. Rather, you always apply for credit cards from a partner bank in Germany, such as the Hanseatic Bank or the Deutsche Kreditbank (DKB). As described, the only exception to this is American Express.
Caution: There are prepaid cards on the market from providers without a banking license. These then also have no deposit insurance, so that their assets are not protected.
Do I need a reference account for a prepaid credit card?
With any normal Visa , Mastercard or American Express credit card, you must provide a reference account. This has to do with the fact that a credit card is then debited directly from the bank account. However, there are two exceptions: On the one hand, there are some banks that require a linked reference account (e.g. direct banks such as the DKB). On the other hand, there is sometimes no conventional direct debit. With the fee-free Mastercard Gold , for example, you have to pay the credit card bill by bank transfer. Accordingly, a reference account is not absolutely necessary here.
Things are also complicated with prepaid credit cards. Theoretically, a reference account would not be necessary here. Because you have to top up the credit anyway before you make a payment. Nevertheless, many providers require a reference account to be deposited as security. However, when you apply for or purchase a prepaid credit card, you will usually be informed whether you need to provide a reference account or not. Normally, this makes no difference for you, since no direct debits are made by the credit card provider. The only exception here are credit cards, where, for example, a monthly fee is debited by direct debit.
What can I do with a prepaid credit card?
In principle, a prepaid credit card can be used for three services:
In principle, it is possible with a prepaid credit card to pay in the shop either conventionally with verification by PIN or signature or contactless. For the latter, the readers must accept NFC payments.
Compared to a conventional credit card, there are otherwise hardly any relevant differences with a prepaid credit card. However, you should note that there are some virtual prepaid credit cards. These can only be used for payments on the Internet. However, they are not suitable for withdrawals or payments in stores. However, this is clearly indicated when applying for or making a purchase.
The same applies to payments on the Internet: Here you can generally pay with a prepaid credit card in the same way as with any other credit card. At least three components are always necessary for payment on the Internet:
Just like normal credit cards, prepaid credit cards You can therefore pay with these credit cards on the Internet just as you would with a normal credit card. In some cases, a check digit is also required for payment on the Internet. With and credit cards you will find this on the card. This is exactly what is usually the case with prepaid credit cards. But not every card of tis type has a check digit. Theoretically, however, you shouldn’t have any problems with a prepaid credit card when making payments on the Internet.
Withdrawals from ATMs are also possible with most prepaid credit cards. Here, however, it should be noted that few providers specify in the conditions that withdrawals are not possible. This is partly the case, for example, with prepaid credit cards, which are not a physical credit card and are therefore neither embossed nor have a chip. You can only pay with this type of credit card online. A PIN is also required for withdrawals from ATMs. If your top-up credit card does not have a PIN, you will normally not be able to withdraw money from an ATM (status: 01/2022).
Where can I not use a prepaid credit card?
In principle, you can use a good prepaid credit card to pay both on the Internet and in shops and even withdraw money. In principle, it sounds as if all credit card services were fulfilled. But there is definitely one or two catches. This is especially the case when it comes to so-called guarantees. For example, if you want to use your credit card to rent a car or a hotel requires a guarantee, you are in a bad position with a prepaid credit card. Neither hotels nor rental car providers usually accept a prepaid credit card for these services.
