Function

• Debit cards are linked to a bank account, allowing consumers to access the funds to make purchases at stores, by phone, and online. A prepaid card allows the user to access a pre-deposited amount and to refill the card once the funds are used up.
  
  

Eligibility

• Debit cards are only available to bank clients, who may be required to provide multiple forms of identification or maintain a set balance to qualify for an account. Approval for a prepaid card is guaranteed without regard to factors such as credit history, according to YoungMoney.com.
  
  

Management

• Unlike prepaid cards, debit accounts can be overdrawn, leading to penalty fees. Prepaid cards can help restrict spending habits, but debit cards may require overdraft protection.
  
  

Cost

• A debit card usually comes free with a bank account, but fees are charged when the card is used at ATMs at other banks. Beyond the initial purchase fee, prepaid cards often come with fees for each purchase, ATM withdrawals, maintenance, and inactivity, according to the New York Times.
  
  

Protection

• Recovering stolen funds is difficult in either case, but a debit card may result in greater losses from a drained bank account. However, debit card policies are more regulated by the government, providing customers with legal defenses against fraudulent bank practices. Prepaid card issuers are not heavily regulated and have more freedom to establish excessive rates and fees.