Saturday, February 14, 2009

The application of pre-paid cash card for consumers

The prepaid card is far from a new idea. The concept is basically the same as a prepaid gift card or a mobile phone SIM card. A prepaid 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 which means a person 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.

Prepaid cash cards are plastic cards, which fall under the pay first category of plastic payments. Prepaid cash cards can be used to make payment for goods and services and even to withdraw money. Before use, the user needs to load the card with a sum of money. Prepaid cash cards are designed to be used as a safer alternative as compare to cash.

Here are some of the general applications with prepaid cash cards
~Bills payment – Rent, utilities, insurance, car payment, and cell phone bills.

~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.

~Money withdrawal from ATM at ease

~Transfer money – certain prepaid cash card provide for this function of money transfer between 2 different cards.

Other than as mentioned above, prepaid cash cards can be used as a replacement for travellers’ cash. Customers buy prepaid debit cards denominated in the currency of destination, and then use them to withdraw cash at ATMs or pay for goods or services. It is indeed a great way to carry prepaid cash card, carry prepaid cash card as we travel is much safer and more secure than carrying around large amounts of cash.

The best thing is, consumers don’t have to worry about extra charges over their card without their knowing. Because the pre-loaded sum of money is the maximum amount that can be charged to the card.

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