A prepaid cash card is neither a credit card nor a debit card where it doesn't have line of credit. Also, it is not a debit card . As the functions are similar to Credit card or debit card so that this week I will introduce the application of prepaid cash card for consumer
1. Types of prepaid cash card
2. The application of prepaid cash card for consumers
3. The types of prepaid debit cards
4. The advantages of prepaid card
5. Top five reasons people get a prepaid Debit card
1. Types of prepaid cash card : There are four types of prepaid cash card
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a. Octopus Card - It has been used in Hong kong for a long period of time to transfer electronic payment, pay for all public transport, parking, fast food restaurant etc.
b. Prepaid Vista Cash Card- It is issued by Four Oaks Bank& Trust company that given the opportunity for consumers with poor credit record and young children by not spending more than the balance on the card.
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c. Ez-link Card- It has been used in Singapore to pay the public transportation and now it can be used at health care centre, government services, industry and gaming.
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d. Smart Trip card- The cards are roughly the same size as a credit card or driver's license.
2. The application of Prepaid cash card for consumer
a. Pay the bills online- Pay rental, cell phone bills etc.
b. Shopping- It can shop anywhere as long as the using of the card been accepted by the shop.
c. Travel card- Traveler can withdraw the funds at ATM that access funds to local currency. It also use to paid the goods purchases and services.
d. Health Care- It provides easy access to healthcare funds and use to pay for co-pays at the medical center.
e. Transfer funds- It can transfers money through electronic whether online or offline.
f. Buy petrol at the pump.
3. The types of prepaid Debit Cards
a. ATM cards- it designed for payment transactions requiring the secured entry of a pin at both the point of sale or ATM.
b. Branded or signature Prepaid Debit Cards- It can be used for transactions at every respective point of sale terminal carrying the visa or the Master card logo which can be used to pay bills and purchase online.
4. The advantages of prepaid cards- There are few major advantages of prepaid card
a. Availability- Consumer can get a card without worry about credit history because there are no credit check available
b. Safety issue- Carrying a card will be more safer than carry cash especially when want to pay a huge transaction amount.
c. control- Parents can control their children's spending by just reload a certain amount into children card. At the same time, consumer spending amount will have been limited .
5. Top Five reasons people get a prepaid Debit Card
a. To pay bills
b. They wanted a Visa card
c. They wanted direct deposit
d. To avoid carrying cash
e. To shop online
Besides the Five topics what I introduced on above, there are several applications of prepaid cash card for consumers:
a. General Spending Debit Card
- For funds security
- ATM cash withdrawals
- Purchase at POS
- Full-function Visa & Mc branded Prepaid Debit card can be used for ' Signature-based' purchases, bill payments and online purchases.
b. Payroll and commission payout card
c. Remittance which funds tansfer within and across borders
d. Affinity Group Card
e. Travel Card
f. Student Card
g. Gift Card
Next, Prepaid cash card are usually used in the scope of activities :
a. Credit Card occupy for 41.5%
b. Debit card occupy for 27.9 %
c. Cash cards occupy for 28.8 %
d. Others occupy for 1.8 %
The activites involves every day shopping, internet shopping, topping up your mobile, paying bills, paying monthly subscriptions, withdrawing cash from ATMS. The most common of prepaid cash card that is used in Malaysia is the Touch n' Go where used at all highways in Malaysia, major public transports, themepark. Touch n'Go also pay for public transportation like KTM, LRT and Rapid KL in Klang Valley and enhances the speed of paying so that it is very convenient because user no longer need to preapre for small change or wait in queue at the cash lane to complete the transaction.
At last, we should understand what the benefit of Prepaid cash card for consumers? Prepaid cash card can be continues use by preload money onto the card at bank, post office, payzone or paypoint terminals or using bank transfer. Other benefits include:
1. it can help to manage consumer money safer, easier and cheaper prepaid visa and prepaid master card work like a checking account where individuals and business deposit money and withdraw funds from a protected account .
2. it is more secure to use prepaid cash card rather than carrying cash around and it enables the person to start spending according to a budget as well.
3. Consumer can only spend what amount in their account so that they will not bear debt.
References :
The Application of Prepaid Cash Card for Consumer. from http://ecommercechangetheworld.blogspot.com/2009/07/application-of-pre-paid-cash-card-for.html
The Application of Prepaid Cash Card for Consumer. from http://juz4uecommerce.wordpress.com/
The Application of Prepaid Cash Card for Consumer. from
http://secretgarden2008.blogspot.com/2008/06/application-of-pre-paid-cash-card-for.html
Others reference website:
Compare Prepaid Cards. from http://www.moneysupermarket.com/c/prepaid-cards/guide/
Topic discussion is a bit misleading. Writers included other applications than the prepaid cash card, making the discussion on prepaid cash card to be very brief
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