A prepaid card that holds money to spend at a store is called what?

• A. Credit card
• B. Gift card
• C. Debit card
• D. Store card

Answer: (B)

A prepaid card that holds money to spend at a store is a gift card. It’s loaded with a specific amount of money before you use it, and you spend that money until the balance runs out. It isn’t borrowed money like a credit card, and it isn’t money taken directly from a bank account like a debit card. It’s also different from a store card, which is usually tied to a retailer’s credit line or account rather than preloaded funds. Gift cards are handy for gifts because you’re giving someone a fixed amount they can spend.