What are security funds?
A Secured Capital One credit card gives you access to credit, just like any other credit card. The only difference is that you need to provide security funds as collateral (through your bank's online banking site or by cheque or money order) before you can receive your card and start using it. These security funds could be as low as $75 and are fully refunded if you ever decide to close your account and have paid your balance in full.
A Secured card is not a pre-paid card.
Unlike a pre-paid card, a secured card gives you a credit limit and your payment information is reported to the credit bureaus. So, using your credit card and making your payments on time helps to establish or repair your credit history.