The application of pre-paid cash card for consumers

Have you ever stood behind someone in line at the store and watched him shuffle through a stack of what must be at least 10 prepaid cards? ?Touch'N Go card, smart card, credit card, debit card….

Prepaid cards are one of the newest and most interesting financial products on the market, and they are something that everyone should be made aware of.

Many of us have prepaid phone cards or SIM cards for our mobiles, but prepaid debit cards are quite a new idea. However, the concept is the same as other prepaid mediums, where you load money onto a card and then you can spend this money at retailers or withdraw the money at an ATM. You load money onto the card using cash, bank transfer or another card.

Prepaid cards are neither credit nor debit cards, but have features similar to both. These are VISA or MasterCard cards usually, and so have the wide usage and security features of a credit card. However, you are not borrowing money, simply using your own money to top up a card and spend on it. They are a financial product that falls in between debit and credit cards.

Touch 'n Go card is an electronic purse that can be used at all highways in Malaysia, major public transports in Klang Valley, selected parking sites and theme park.

Touch 'n Go uses contactless smartcard technology. The card looks similar to a credit card. User can continue using the card as long as it is pre-loaded with electronic cash. User can reload the card at toll plazas, train stations, Automated Teller Machines, Cash Deposit Machines, Petrol kiosks and at authorised third party outlets. Reload denomination is ranging from RM20 to RM500.

Touch ‘n Go enhances the speed of paying for low value but high frequency transactions. Apart from the speed, it is also very convenient because user no longer need to prepare for small change or wait in queue at the cash lane to complete the transaction.

Links to Touch'N Go : http://www.touchngo.com.my/index.jsp

Octopus Card was launched in Hong Kong on year 1997, September. It is a rechargeable contactless stored value smart card to transfer electronic payments in online in offline system. It is widely used in payment system for transportation, supermarkets, fast food restaurant, car parks and other pint of sale application such as service station s and vending machines that have achieved good outcomes.

Links to Hong Kong Octopus Card: http://www.octopuscards.com/

The Application for pre-paid cash card

The prepaid cash card is of use in several ways, namely:

1. Pay bill – Rent, utilities, insurance, car payment, and cell phone bills can be paid instantly.

2. Shop anywhere as long as the card using is accepted at different retailers, buys fuel at the pump, pay by phone, and shop on the Internet.

3. Get cash at ATMs, any time of the day, and any day of the week.

4. Transfer money – For some prepaid cash card they provide the convenient such as send or receive money via bank wire transfers, between two cards.

5.Pay for toll– use Touch n' Go card as an example, it can be used at all highways in Malaysia, major public transports in Klang Valley, selected parking sites and theme park

6.E-identification – Smart cards storing personal information. For example: Malaysian Identity Card, Malaysian International passport.

7. Health care – Smart card stores health data about patient, allergies, past medical records.


Other than as mentioned above, prepaid cash cards can be used as a replacement for travellers’ cash. Customers buy prepaid debit cards denominated in the currency of destination, and then use them to withdraw cash at ATMs or pay for goods or services. It is indeed a great way to carry prepaid cash card, carry prepaid cash card as we travel is much safer and more secure than carrying around large amounts of cash.

References:

http://tranceboundaries.blogspot.com/2008/06/application-of-prepaid-cash-card-for.html

http://ezinearticles.com/?Advantages-And-Disadvantages-Of-A-Prepaid-Card&id=372866

http://www.howstuffworks.com/question332.htm

http://ecommercesite.wordpress.com/2008/06/27/the-application-of-pre-paid-cash-card-for-consumers-2/