Friday, July 3, 2009

The Application of Pre-Paid Cash Card for Consumers

Prepaid cash card is similar to debit card, with a card number, signature and company branding. It enables holder to purchase and make payment using an amount preloaded by the holder or someone else. However, it is not like debit card services which links to a bank account with an overdraft facility. Prepaid cash card users are only allowed to use the credit preloaded by them.

It is convenience to keep and use. Users can use it as a substitute for cheques and cash. For example, if prepaid cash card is a MasterCard, VISA or Maestro card, users can use it to make purchases anywhere around the world where those cards are accepted and it is more secure as it can be blocked if it’s lost or stolen.

Users are allowed to use prepaid cash card to buy things at shops, or for telephone shopping, mail order shopping or Internet shopping. Moreover, there are some other prepaid cards such as Touch ‘n Go (TnG) smart card. Users of TnG can use their preloaded cards to pay for highway tolls, Light Rail Transit(LRT) or bus tickets and even car park fees.

Next, Octopus card used in Hong Kong is also one of the examples of prepaid cash cards. This is a smart card that used to transfer electronic payment in online or offline systems. Users can use it for public transport in Hong Kong, payment at supermarkets, convenience stores, on-street parking meters, car parks, fast-food restaurant, and other point-of-sale.

Users of prepaid cards are free from debts as they have no chance to spend exceeding the preloaded amount. This is different from credit cards which require repayments after purchases. Debts are easy to create as credit card users can exceed budget easily.

Besides that, there is no interest charged onprepaid cash cards and it is easy to apply because no credits check is needed. It helps users to control and limit their money spending. They can only spend with the money that is loaded onto the card and spending can be checked via the Internet.

Prepaid cash cards have brought many benefits. People should be encouraged to utilize it in making their purchase transactions.

(Master Card and VISA Card)

(Touch 'n Go Card)

(Octopus Card)