Which of the following is a benefit of using a prepaid payment card?

Using a prepaid payment card offers the benefit of eliminating the risk of overspending. This is because a prepaid card allows users to load a specific amount of money onto the card, and they can only spend up to that amount. This built-in limitation helps individuals manage their budgets and avoid incurring debt or spending more than they can afford, which is especially advantageous for those who may struggle with traditional credit cards.

While some prepaid cards may offer incentives like cash back or rewards points, the primary function is to provide control over spending. This differentiates it from credit cards, which inherently allow users to spend beyond their means as they borrow funds. The prepaid nature ensures that once the balance is used up, spending stops unless additional funds are loaded onto the card.

The other potential benefits, such as building credit history or providing rewards like frequent flyer miles, are not standard features of prepaid cards. Prepaid cards typically do not impact credit scores because they don’t involve borrowing funds, and while some may allow for convenience in withdrawals, they do not generally provide unlimited access to funds without limitations on how much has been preloaded.