Prepaid credit cards, also known as "Open System Purchasing Cards", or "stored value credit card" are not really credit cards, as no credit is offered by the card issuer. In reality, the card-holder spends money which has been "stored" on the card via his own prior deposit. (The value is not physically stored on the card; instead, the card number uniquely identifies a record in some central database, where the balance is recorded.)

These prepaid cards are similar to gift cards, but are issued with a credit card logo such as Visa or MasterCard and can, unlike gift cards, be used anywhere a Visa or Mastercard may be used. They are very similar to a debit or check card except that they don't require a checking account. However, they do not have many of the benefits of the credit card. Things like product or service return/refund assistance, unauthorized purchase protection. They have been heavily marketed in the United States as a safe and responsible means for parents to give their children some spending power which is why they sometimes are referred to as teen cards. These cards are also sometimes referred to as "open loop" cards.

Stored value credit cards are usually not anonymous. They have to be enrolled under the cardholder's name and are mailed by the issuer to the cardholder's address. This generally carries with it a heightened level of privacy concerns among cardholders. The inception of the Patriot Act has opened the door to government intrusion, leaving cardholders wondering whether or not their activities can be tracked back to them.

Prepaid credit cards have been marketed to consumers with poor credit, who are unable to qualify for the line of credit that backs a mainstream credit card. The fees associated with these cards are often very high. These have been criticized as unjustified, because the issuer is not taking any credit risk. The Financial Consumer Agency of Canada describes prepaid credit cards as "an expensive way to spend your own money."