The application of pre-paid cash card for consumers

Nowadays, pre-paid cash card are being used around the world. Pre-paid cash card is pre-paid debit card that enables the holder to make purchases and have them deducted from the card’s available balance. A cash card may be branded with a major credit card issuer’s logo, such as American Express, MasterCard, Visa, Octopus card etc, which enables the holder to make purchases wherever those card are accepted. Other types of cash cards that have been widely used in Malaysia are Touch’n go, Smart Tags and etc.

The prepaid cash card can be used in several way:

1. Online payment. Card holders can use it to buy things online and booked airlines ticket whenever they wish.

2. Toll payment. Using Touch’n go or Smart Tag is the expressway of making toll payment at all highways and use for public transports’ fares like bus, LRT and so on.

3. Shop anywhere. As long as the card using is accepted by different retailers such as buys fuel at the petrol station, buy clothes, beauty card product, etc.

4.Transfer money. For some prepaid cash card they provide the convenient such as send or receive money via bank wire transfers, between two cards.

5. Replacement for travelers’ cash. Travelers buy prepaid debit cards denominated in the currency of destination, and then use them to withdraw cash at ATM or pay for goods or services. This is much safer and more secure than carrying around with a large amount of cash.

In a nutshell, pre-paid cash cards are useful payment tool as there is no debt risk because holders will have no chance of spending too much as they are limited to the amount they transfer into the card. It is indeed a good invention for holders to manage their own financial control.

Useful links:

http://www.moneysupermarket.com/c/prepaid-cards/guide/

http://www.creditorweb.com/definition/cash-cards.html