A prepaid account is an account holding money that the user, an employer or a government agency has loaded in advance, which can then be spent or withdrawn up to the available balance. It is usually accessed through a prepaid card, a mobile app or a digital wallet, and is often offered by non-bank programme managers working with an issuing bank or an electronic money institution.
The account itself is the record of the balance; the card is only one way to reach it. In the United States, the consumer protection framework under Regulation E includes a defined category of prepaid accounts, which brings disclosure, error-resolution and liability protections, while anti-money laundering rules treat the same products as prepaid access. In Europe, most prepaid accounts hold electronic money. Prepaid accounts are widely used for payroll, benefits, travel money and people without a bank account.