Read the given passage carefully and answer the questions that follow. Certain words are printed in bold to help you locate them while answering some of these.

Prepaid debit cards are becoming increasingly popular financial products. With a prepaid card, you load money onto an account associated with a card. The card works like a credit card in that you swipe at a terminal to make payment. However, unlike a credit card, you are using your own money when you use a prepaid debit card. The purchase amount is deducted from the balance you have on your card. Once you run out of money on the card, you are required to add more funds if you want to keep spending.

Prepaid debit cards are becoming increasingly popular among the unbanked. These cards allow those without bank accounts (and who might not qualify for bank accounts) access some of the same conveniences. Most prepaid cards allow you to arrange direct deposit for your paycheck, and it makes it easy to make purchases online and offline without the need for cash. Prepaid debit cards are normally accepted anywhere that credit cards bearing the same logos are accepted. This brings the convenience of plastic, but keeps the consumer from paying interest. It’s also possible to arrange for online bill pay and automatic withdrawals when you have a prepaid debit card. For many, a prepaid debit card functions much like a checking account.
It is important to note, though, that prepaid debit cards are not the same as credit cards. Using a prepaid debit card will not improve your credit score. You should also realize that prepaid debit cards often come with an array of fees that can sap your funds. Many cards have activation fees, as well as monthly fees. You might also be charged just for checking your balance at an ATM, or even for reloading your card. For the unbanked, paying a fee of $4.95 per month is still cheaper than getting a “second chance” checking account that might charge as much as $9 or more a month.