The Application of Pre-Paid Cash card for Consumers

Currently, technology has come out with another new piece of plastic card to replace cash known as “prepaid cash card”. It acts as an alternative payment to cash when making purchases. I know, I know. You would probably have wondered “Right, another plastic card that replaces cash. Does it have any difference between a credit card and a debit card??”

Well, it is simple. Let’s start off with credit cards.

Whenever you are using a credit card, it actually means that the bank or the financial institutions would first pay the debt to the vendor for you. In other words, you are actually borrowing money from them. Therefore, by signing up for a credit card, it actually acts like an agreement that you are willing to pay back the money that you have borrowed. This includes interest drawn on the amount you borrowed.

As for debit cards, it basically acts the same way as checks but in a much faster way by taking funds directly from the money that you have in your bank account. It provides instant access to your money and is widely accepted.

Prepaid cash card requires you to first top up or reload an amount of money into the account. Then you can spend up to only the amount you have deposited. This is suitable to those who prefer to themselves from overspending.

Basically, it is very simple to use a prepaid cash card. When you are ready to make payments, just simply hand over the card and then you will be asked to enter your PIN number on an electronic keypad or to sign on a payment slip which will be verified with your signature on the back of the card. The total amount will be taken from your card immediately and thus the transaction is complete.

Below are illustrations on a few applications of the pre-paid cash card for consumers:
1) Purchase tickets online – Examples of tickets available through online would be flight tickets, public transport tickets such as bus or KTM, movie tickets, concert tickets and more.
2) Pay Bills - As for we students, the obvious one would be student bills. Others would be mobile phone bills, electric bills, water bills, and so on.
3) Shopping - Include online shopping on products such as clothes, books, Accessories, mobile phones and etc.
4) Hotel booking - Provides convenience for tourists who wished to book
their accommodation.

In conclusion, on top of the many applications that can be made by consumers; we find that the invention of prepaid cash cards is indeed very useful. Of course, first of all; it is much safer to carry a card around than cash. Secondly, it helps us to control our spending and therefore we do not have to worry about paying our credit card bills or going into debt. We also felt that it is suitable for students especially when using it to pay their university or college fees as they can easily reload the amount of money online, over the phone or at any ATM worldwide; rather than having to bring a huge amount of cash.

Relevant Links :
http://www.freepatentsonline.com/7082416.html

http://www.economywatch.com/debit-card/security.html
http://en.wikipedia.org/wiki/Debit_card#Prepaid_Debit_Card

http://www.youngmoney.com/credit_debt/credit_basics/credit_debit_prepaid