The Application of Pre-paid Cash Card for Consumer

Nowadays, people can limit their spending with their pre-paid cash card that load funds onto the card and use the money. A prepaid cash card allows consumers to purchase something even when they don’t have the cash to pay for it.

Basically, a pre-paid cash card looks like a credit or debit card, and gives users the ability to purchase products and services with a card but with a crucial difference - users can only spend the balance that has been preloaded onto their card.There is no risk of running into debt as it has no credit or overdraft facility.

The application of pre-paid cash card for consumers :-

• Making hotel reservation
  
• Topping up your mobile phone
• Bill payment and online purchase
  
• Transferring money to friends and family
  
• Withdrawing cash from an ATM
• Petrol filling
  

These numerous benefits of pre-paid cash card :-

• Availability - No credit checks, which means users can get a card without worrying about their credit history. All prepaid card providers will carry out an Identity check to confirm users are who users say they are.

• No debt risk - There is no chance of spending too much as users are limited to the amount that users load funds onto their cards.

• Security feature - Pre-paid cash card holders are protected against theft and fraud by Personal Identification Numbers (PIN). Pre-paid cash cards are safer if comparing to carrying cash because cash cards can prevent cash being stolen or lost.

• The card for travel - As well as being able to top up the card, depending on the specific provider, users will be able to use it at ATMs worldwide. Many providers now offer dollar and euro cards and offer a better exchange rate on their travel cards. Other than that, prepaid cash cards offer a good alternative to travelers' cheques.

The several types of pre-paid cash card :-

Touch n Go (Malaysia)
(TnG) smart card is used by Malaysian for electronic payment system to toll expressway and highway. It is expanding its business to retail purchase by starting with fast food industry that enables consumers to buy burgers or fast-food from 21 outlets such as Burger King, 7-Eleven, Dunkin’ Donut. Besides that, card holders can use their prepaid cash cards pay parking fee before they are entering the shopping malls such as Midvalley, Sunway Pyramid and etc.

Octopus (Hong Kong)
It is an electronic system that makes traveling, dining and shopping in Hong Kong simple and hassle-free. Each Octopus contains a built-in microchip containing all users payment information. Just with a simple 'touch and go' of the Octopus cash card at a processing machine, the system automatically deducts the correct amount. There is no longer a need to carry coins.


EZ-Link (Singapore)
A system is similar to the Octopus Card in Hong Kong and Touch n Go in Malaysia.

The EZ-Link card is a contactless smart card based on the Sony Felica smartcard technology and used for the payment of public transportation fees in Singapore such as Mass-Rapid Transit (MRT), Light Rail Transit (LRT) and public bus services, with limited use in the small payments retail sector. EZ-Link cards being used for payments in Singapore branches of McDonald's. Some schools in Singapore have also started to adopt the EZ-Link card as a way to mark the attendance of students and to pay for food served within the school campus.


There is no interest change, late fees or over limit free for the pre-paid cash card. Nowadays, many consumers bankrupt because of bad debt of credit cards. Pre-paid cash cards are different with credit cards. It will control the limit while credit cards is uncontrollable. So, most of consumers choose to apply pre-paid cash cards rather than credit cards because it is safe and easy to use.

References:
Retrieved from http://www.moneysupermarket.com/c/prepaid-cards/guide/1/ on 1 July 2009
Retrieved from http://en.wikipedia.org/wiki/EZ-Link on 1 July 2009
Retrieved from http://en.wikipedia.org/wiki/Octopus_Card on 1 July 2009