What are the differences between prepaid card and credit card?

Did you know that there are several types of cards? It may seem difficult to choose one that meets our needs. How about getting into the differences between prepaid card and credit card?

There are some important differences in each card that influence purchases. Know:


Differences between prepaid card and credit

Differences between prepaid card and credit

The prepaid card works just like a mobile phone in the same function. You determine how much you want or can spend and make a charge on the amount. This is a big difference to credit. The credit card works as a loan as the bank releases a spending limit and you must pay on the agreed date, otherwise you will pay interest and penalties.

In addition to having the limit controlled by you, the prepaid card does not allow installment purchases, ie you can only make cash purchases with it. By the way, when you make a prepaid purchase, inform the credit to pay function, the debit function only works with checking account. The credit card allows installments. The amount will come monthly discounted in the invoice. Stay tuned, the amount debited from your limit is not per install, but the total amount. Example: Suppose your credit card is limited to $ 500 and you made a purchase of $ 200, split at 4x. Your limit will then drop to $ 300. Your limit increases again with each installment paid ($ 50).

The prepaid card has no invoice, bills are paid automatically, but most of these cards offer an app that you can track purchases and check how much balance is left.


Credit card

Credit card

You can apply online or at banks. The customer goes through a credit analysis, which takes into account the financial situation, as the bank has to ensure that the customer can pay the bill. If approved, the card arrives at your home and you need to unlock it to use it.

Your limit is informed after the analysis. This limit is how much you can spend monthly on purchases. You can shop at one time or installment. Knowing how to use the card with awareness is the key to not curling up and turning red.


Prepaid card

Prepaid card

Prepaid can also be requested at banks or online. No credit analysis or proof of income is required. Just apply for your card.

You decide how much you want to spend. To use your prepaid card, simply top up your desired amount. Here’s how to reload:

  • Transfer: TED or DOC to Card Account
  • Boleto: You generate a ticket with the desired amount and pay in any lottery or bank
  • Direct debit
  • Deposit identified
  • Accredited card stores and markets

Prepaid helps your finances as it does not give the false sense of money available nor does it roll over the months in installments. This is a good tip for those looking to recover financially.


Where can I buy with a prepaid card?

Anywhere that accepts the flag! Just like a credit card, prepaid is usually accepted at thousands of physical and virtual stores. The flag (Visa, Mastercard, etc.) is responsible for validating the establishment and accepting that card, ie the little machine.

So if your prepaid card has a well-accepted banner, you can make your purchases as normal.


Service Subscription

Both credit and prepaid cards can be used to subscribe to streaming or travel services, for example. Netflix, Spotify, Uber, 99 and many other services require a card for payment. There are no differences in this matter except the prepaid card must contain the required balance for subscriptions.


Is prepaid card good?

Is prepaid card good?

Many people still have questions about having a prepaid, if it’s worth it, if it’s good. It can be an alternative for people who have name restrictions. As long as you try to get rid of debt and get out of the red, you can do your prepaid purchases, with the advantage of not complicating your situation.

Another recommended use for prepaid card is as allowance. Make it easy for them to shop and you can monitor everything from the app. Your kids don’t have to walk around with cash, just like a trip. Prepaid cards are great for travel. We always gather money to travel. So how about taking it on the card? It gets much easier! Some you can carry with you from the destination country without having to exchange.


Card Types

credit cards

Know the different types of credit and prepaid cards.


  • National: Credit Cards accepted in Brazil only
  • International: Can be used for shopping at home and abroad, in stores and on websites
  • Infinite, Black, Platinum, Gold: These are cards for people with higher purchasing power. Annuity is usually more expensive and benefits are greater in convenience, limit and ease of shopping. Cards like Black and Platinum are the highest of the categories. Typically, these cards are made by invitation from the manager to customers with good movement and high income.




  • National: Cards accepted in Brazil only
  • International: Can be used for shopping at home and abroad, in stores and on websites
  • Corporate: Employee Pay or Purchase for Company Purchases
  • Gift Card: You buy the card with a certain value and you can give a person a gift. This type of card can be found in stores and on the internet.


Can a minor have a card?

Credit card cannot be issued to persons under 18 years. In some cases, it is possible to have the additional card, which is linked to the cardholder, sharing the limit.

Prepaid card is possible for minors. Just have a valid social security number. If you prefer, parents can also make the card for their child.


What rates does a card have?

credit cards

Credit Card May Have The Following Fees

  • Annuity
  • Interest on late payment
  • Late payment fines
  • Withdraw
  • Emergency Credit Rating
  • Issue of 2nd copy of card

Fees the prepaid card may have

  • Membership Fee (Card Order)
  • Monthly payment (when there is a balance on the card)
  • Withdraw
  • Reload
  • Issue of 2nd copy of card