The application of pre-paid cash card for consumer

Pre-paid cash card is a card that works exactly like a credit card, but in condition that money must be deposited or reload in it first before using. This allows customers better monitor and budget usage. Pre-paid cash card included debit card, prepaid credit card and stored value card. A debit card is issued by a bank to allow consumers access to their funds without going to bank. Debit card can be multipurpose, customers can use it as payment method at merchant locations or ATM card for withdrawing cash. Stored-value card is similar with debit card, the major difference between debit card and stored-value card is debit cards need a bank account and usually issued in the name of individual account holder, while stored value cards are anonymous. The value associated with the card can be accessed through using magnetic stripe, RFID or enter code number. An example of stored-value cards is Malaysians’ Touch & GO cards.

Application of pre-paid cash card for customers

• Those customers who have poor credit record may not be eligible for credit card but they are able to apply for debit cards.
• Paying bills.
• Safer for consumers for bringing a pre-paid cash card rather than carry cash.
• Visa and MasterCard are worldwide.
• Don’t worry about paying a credit card bill and avoid incurring any debt.
• Anyone who over age of 18 is qualified to apply debit and be accepted without fulfill the qualification of applying credit card.
• Easy to reload or deposit eg. Through online, mobile money or any ATM.
• Withdraw cash from ATM.
• It is suitable for Internet transaction. It provides customers convenience to make purchases online.
• Parents could better manage their kids’ financial problem by limited amount in the debit card as well as provide convenience to younger people and avoid getting into debt.