What are prepaid debit cards primarily used for?

Prepaid debit cards are primarily designed to hold funds before a purchase. These cards allow users to load a specific amount of money onto the card, which can then be used to make purchases until the loaded balance is exhausted. This method of payment can be advantageous for budgeting, as users cannot spend more than the amount loaded onto the card, helping to prevent overspending.

In contrast, while prepaid debit cards can be used for making online purchases, that is not their primary function. They typically serve as a flexible payment option that incorporates the ability to make purchases without the need for a traditional bank account or credit line. Additionally, prepaid cards are not the best tool for building credit history since they do not report to credit bureaus; thus, using them does not contribute to credit scores. Lastly, while some prepaid cards allow for receiving direct deposits, this feature is secondary compared to their main purpose of facilitating transactions using funds that have already been deposited onto the card.