Debit cards are used the same way as credit cards, but rather than the credit card company paying for your purchase, the money gets taken out of your checking account right away. Ah ha, there’s no interest because you used your own money. That’s a definite plus of the debit card. And debit cards help keep you from spending like crazy because when the well runs dry – that is, YOUR bank account evaporates – you are… cut off.
Like if Clive Clueless, the clueless climber, had had a debit card instead of a credit card, he wouldn’t have been able to splurge on that Xbox or that paintball gun, and maxed out his credit card. The downside is that he’d have been hitchhiking (at which thought his mom would have fainted) because he wouldn’t have had the money to pay for his transmission repair.
A prepaid card is like a reloadable debit card where you can only spend money you have pre-deposited into the account, kinda like a gift card. Parents use these to give their kids spending money on a card instead of in cash.