Comparison table of Gift Cards vs. Prepaid Debit Cards

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Here’s a side-by-side comparison table of Gift Cards vs. Prepaid Debit Cards:

Gift Card vs Prepaid Debit Card — Comparison Table

Feature	Gift Card	Prepaid Debit Card
Usage Scope	Usually closed-loop (specific store/brand). Some open-loop Visa/Mastercard gift cards exist.	Open-loop → works anywhere Visa/Mastercard/AmEx/Discover is accepted.
Reloadable?	Usually not reloadable (single-use until balance is gone).	Reloadable with cash, bank transfer, or direct deposit.
Identity Required?	No registration needed (often anonymous).	Requires registration (name, address, sometimes SSN/ID).
Fraud Protection	Limited protection if lost/stolen.	Includes fraud protection & dispute rights (like a debit card).
Expiration & Fees	May expire or lose value due to inactivity fees. No monthly fees.	Rarely expires, but may have monthly maintenance, ATM, or reload fees.
Cash Withdrawal	Cannot withdraw cash (store credit only).	Can withdraw cash at ATMs.
Best For	Gifting, store-specific shopping, one-time use.	Budgeting, travel, online shopping, alternative to a bank account.

Quick Rule of Thumb:

Gift Card = A store coupon with money loaded.

Prepaid Debit Card = A mini bank account without the bank.