The application of pre-paid cash for consumers

What is prepaid cash card?
A prepaid cash card is a plastic card which provides an alternative payment method to cash when making purchases. The payment time frame of prepaid cash card is different with debit card and credit card. The payment of debit card is make during transactions whereas credit card is make a payment after transactions. However, prepaid cash card should pre-loaded cash into card before make any transactions.

Benefits of using prepaid cash card

• No debt risk-The users can only spend the balance that has been preloaded onto the card and unlike credit cards the funds are transferred from the bearer's bank account instead of having the bearer to pay back on a later date. Therefore, the users can avoid falling into debt and never have to worry about finance charges, late charges, or over-the-limit fees.

• Convenience-It can be use to shop & pay bills online, purchase goods & services, withdraw cash at virtually any ATM, topping up mobile phone, the replacement of travellers' cheques and so on.

• Safety- It is more safety instead of carrying large sum of cash when shop in supermarket because the users need to enter a PIN number on electronic keypad and sign a receipt to ensure that user who is authorize to using the prepaid cash card. However, the user will find the item they want to buy and click on to the websites "checkout" page before filling in they details and those of their prepaid card when internet shopping. Then, the transaction will be completed as long as have enough cash loaded onto cash.
  

Applications and examples of prepaid cash card

Touch 'n Go for e-tailing
E-tailing or electronic retailing refers to the practice of selling goods and services over an electronic medium like the internet. Touch 'n Go is an electronic purse that can be used by Malaysian toll expressway and highway operators as the sole Electronic Payment System (EPS). Furthermore, cardholders can also pay for purchases made over the Internet using a smart card reader and the NETS E-Wallet.

Touch ‘n Go uses contactless smart card technology and it looks similar to a credit card. User can continue using the card as long as it is pre-loaded with electronic cash. User can reload the card at toll plazas, train stations, Automated Teller Machines, Cash Deposit Machines, Petrol kiosks and at authorised third party outlets.

Cardholders can pay charges and purchases made at retail outlets, vending machines, public pay phones, car parks, fast food restaurant and so on. It is very convenient because cardholders no longer need to prepare for small change or wait in queue at the cash lane to complete the transaction.


Octopus card application in Hong Kong

The Octopus card is an electronic fare card that used to transfer electronic
payment in online or offline system in Hong Kong. It was launched in September 1997. Furthermore, it is easy and convenience to use, saves time and eliminates need for small change.

It is simply waved over a sensor and the correct amount is either deducted or added to cardholder balance immediately. The cardholders can add money to it when they need. The Octopus card is also used for payment at convenience stores, supermarkets, fast food restaurants, on-street parking meters, car parks and other point-of-sale applications such as service stations and vending machines. However, the primary used of Octopus card is for public transport.

On the other hand, it was further classified into Child, Adult, Elder, and Personalised categories and different amounts of fare concession. For instance, the Octopus card for adult is sold for HK$150 with an initial value of HK$100. Furthermore, Octopus card's standard transaction time for readers used for public transport is 0.3 seconds, while that of readers used for retailers is 1 second. This is one of the reason Hong Kong residents like to use the Octopus card.

The other special-purpose card, the MTR Airport Staff Octopus, is available for the staff of Hong Kong International Airport and Asia World-Expo. Staff who apply for the card may use it for a discount of up to 64 percent for Airport Express single journey fares.


Related links:
http://www.bnm.gov.my/index.php?ch=17&pg=671&ac=581 http://www.moneysupermarket.com/c/prepaid-cards/guide/
http://forum.picantoclub.com/index.php?showtopic=941
http://www.discoverhongkong.com/eng/trip-planner/transport.html
http://en.wikipedia.org/wiki/Octopus_card#Card_usage
http://www.hong-kong-travel.org/Octopus.asp