The application of prepaid cash card for consumers

The pre-paid cash card represent money and is similar to a stored-value card. A pre-paid cash card is just a plastic card which provides an alternative payment method for purchasing goods. Its function is just like ATM card, it's withdraw direct from either bank account or remaining balance on the card. The card also can use on the internet. Nowadays, pre-paid cash card has become wide-spread in many countries and it is taking over the cheque and some instances cash transactions by volume. The value associated with the card can be accessed using a magnetic stripe embedded in the card, on which the card number is encoded; using radio-frequency identification; or by entering a code number, printed on the card, into a telephone or other numeric keypad.

Pre-paid cash card have typical application, there is closed system card, semi closed system cards, open system purchasing cards and open system cards.

“Closed system cards”
The cards for replaced the traditional "gift certificate" and are commonly known as "gift cards". Purchasers buy a card for a fixed amount and can only use the card at the merchant that issues the card.

"Semi-closed system cards"
Cardholders are permitted to redeem the cards at multiple merchants within a geographic area. These types of cards are issued by a third party, rather than the retailer who accepts the card.

"Open System Purchasing Cards"
Cards is not really a credit card, although they are often marketed as "prepaid credit cards", as no credit is offered by the card issuer: the card-holder spends money which has been "stored" on the card via his own prior deposit.

"Open system prepaid cards"
There are the most regulated of all the stored value cards. An example is the Payroll card. Payroll cards are used by employers to pay employees. The employee is issued a card that permits access to an account established by the employer.

- ALVIN POON CHEE HAU -