if it's a prepaid card, it ain't credit card. if it's a credit card, it ain't prepaid. so the real term is debit card or prepaid card.

I have one. Public Bank Visa Electron debit card. I used it to verify my PayPal, purchase domain names, web hosting, and things.

Yes, you can use it to cash out PayPal, with a fee of USD 5.00 per transaction, up to USD 500 per day, if you are using Premiere PayPal (which is, free).