What is a prepaid cash card???
A prepaid cash card is a plastic card issued by banks to customers which provides an alternative payment method to cash when making purchases. The card allows instant purchase, removing the correct balance from the user’s attached bank account. It can also be called an electronic check, as the funds are withdrawn directly from either the bank account or from the remaining balance on the card. In some cases, the cards are designed exclusively for use on the Internet, and so there is no physical card Prepaid cash card are distinct from credit cards in that they allow purchase based on available funds in the account to be deducted immediately, instead of by using a line of credit that can be repaid at a later time.
There are several usefulness of prepaid cash card:
i) Works like a checking account.
AccountNow Prepaid Visa and Prepaid MasterCard cards work like a checking account. Keep your money safe in one of our prepaid card accounts instead of carrying it around in cash.
ii) Better than a credit card.
AccountNow Prepaid Visa & Prepaid MasterCard cards do not extend credit like credit card it means that you can’t spend money you don’t have. As a result, user will never have to worry about finance charges, late charges, or over-the-limit fees. Besides, user can use the card to shop & pay bills online, make hotel & car rental reservations, and purchase goods & services.
iii) Saves you lots of money.
Instead of traditional checking accounts, credit cards, bill paying services, check cashing, or bill paying services, now user can save hundreds of dollars a year using the AccountNow Prepaid Visa and Prepaid MasterCard card.
iv) Helps build your credit history.
Using the AccountNow Prepaid Visa and Prepaid MasterCard card can help you build your credit history in two ways.
v) Safer than cash.
Your AccountNow Prepaid Visa or Prepaid MasterCard card is protected against fraud and it also protects you from unauthorized charges made to your prepaid card account in case your card is lost or stolen.
vi) Everyone is accepted.
Getting an AccountNow Prepaid Visa or Prepaid MasterCard card is easier then qualifying for a credit card or checking account. Prepaid cards look like credit and debit cards and they offer the same ability to purchase products and services but with a crucial difference, which is user can only spend the balance that has been preloaded onto the card. This means there is no risk of running into debt as it has no credit or overdraft facility.
Application of Prepaid Cash Cards
1. Toll payment –Touch ‘n Go (TnG) smart card is used by Malaysian toll expressway and highway operators as the sole electronic payment system (EPS). The credit card sized smart card made of plastic with Philips' MIFARE microchip technology embedded in it. In addition to payment system for toll, it is expanding its business to retail purchase by starting with fast food industry.
2. Collect fares for the territory's mass transit system -Octopus card is a smart card used to transfer electronic payments in online or offline systems in Hong Kong. It launched in September 1997 to collect fares for the territory's mass transit system, The Octopus is also used for payment at convenience stores, supermarkets, fast-food restaurants, on-street parking meters, car parks, and other point-of-sale applications such as service stations and vending machines.
3. Transfer money or withdraw money–for some prepaid cash card they provide the convenient such as send or receive money via bank wire transfers, between two cards. User can make the transaction any time of the day, and any day of the week.
4. 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.
5. Bill payment–Rent, utilities, insurance, car payment, and cell phone bills can
be paid instantly via online. These payment can be done through electronic account. In conclusion, prepaid cash card is a good invention that makes life easier, it contributed a lots of benefits such as save more money, avoid debt risk with no chance to spend too much as the balance is limited to the amount reloaded.
References:
http://usa.visa.com/personal/cards/prepaid/index.html
http://www.mastercard.com/us/personal/en/aboutourcards/gift_prepaid/
http://www.electronic-payments.co.uk/solutions/Splash_plastic_card
1 comments:
How good if Malaysia has the "octopus card" also!!! but luckily Malaysia still has touch-n-go...masih boleh tahan!!! hahahaa
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