The application of pre-paid cash card for consumers.

What is Pre-paid cash card?

Pre-paid cash card is a rechargeable stored value card that can be used to transfer electronic payments in online or offline system. The amount to be paid will be deducted from the value. Once the initial value has been completely used up, user can top up and continue using it to make transaction. With a pre-paid cash card, we can have faster journey and we do not need to carry so much cash with us all the time. With just a card we can go anywhere we want. It is so convenient and safe.

Prepaid Cash Cards – Why people use them?

Nowadays, people can limit their spending with their prepaid cash card that load funds onto the card and use the money. There are many people tend or already have their own prepaid cash cards, why is it so? The several reasons are as below:

1. Remain in control of one’s money, keep track all of activity online or by phone.

2. Free balance alerts –Some card providers will inform users on how much cash they have.

3. Eliminate check cashing fees and enjoy immediate access to your money through direct deposit of your paycheck, government payment or other income sources, no bank account needed.

4. Avoid bounced check fees; always know exactly how much money you have to spend. The prepaid card can help protect you from over spending.

Examples of Pre-paid cash card

Touch ‘n Go (TnG) smart card is an electronic payment system that can be used by Malaysian at all highways, major public transport in Klang Valley, selected parking sites and theme park. Well, it is expanding its business to retail purchase by starting with fast food industry that enables consumers to buy dough nut, burger or fast-food from 21 outlets such as Burger King, 7-Eleven, Dunkin’ Donut. It is imitating the success of Hong Kong’s Octopus Card by setting 5 to 10% of the card holders for retail purchase as current target of the company.

Pre-paid Vista Cash Card 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. Visa permits travelers access to money at automated teller machines in 65 countries and book the train tickets by offering prepaid cash card such as Metro Card in New York City.

Octopus Card was launched in Hong Kong on year 1997, September. It is a rechargeable contactless stored value smart card which used 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 stations and vending machines that have achieved good outcomes.

For further information, please refer those links:

1.http://www.startecredit.com/creditpages/prepaid-credit-cards-applications-prerpaid-reloadable-credit-cards.htm

2. http://www.freepatentsonline.com/5621787.html

3. http://en.wikipedia.org/wiki/Octopus_card

4. http://www.touchngo.com.my/