THE APPLICATION OF PRE PAID CASH CARD FOR CONSUMERS

PRE PAID GIFT CARD







PRE PAID CASH CARD

A prepaid card looks like a credit or debit card, and gives users the ability to purchase products and services with a card but it has a crucial difference. That is we can only spend the balance that has been preloaded onto the card and will no has any risk of running into debt as the card itself has no credit or overdraft facility. Example of pre paid cash card is pre paid gift and pre paid mobile phone sim card and so on.

HOW IT WORKS?

The pre paid cash card work exactly like debit or credit card . What we need to do is hand over the card to the cashier , after that we will require to enter the PIN number (supplied with the card) on an electronic keypad or to sign a payment slip so your signature can be matched with that on the back of the card (if there is no Chip on the card). As long as we have enough balance , the transaction is complete and the amount we spend will be taken from our card immediately. Besides normal transactions, pre paid cash card also can be used in online purchasing.

To reload the card we can go to the post office, pay zone, through bank transfer or even using credit card . It is very convenient to the consumers as it can be use and reload anywhere , anytime.

Pre paid cash card can use to buy groceries and petrol, top up mobile phone, use in internet shopping, pay bills and even withdraw cash from an ATM.

ADVANTAGES

There are numerous benefits to the prepaid card. These include:

Availability - There are no credit checks, which means you can get a card without worrying about your credit history. All prepaid card providers will carry out an Identity check to confirm you are who you say you are.

Control - prepaid cards are an ideal way to budget for yourself or help to manage your children's spending. Like a credit card you get a full breakdown of spending on the card so you can see what has been purchased, who from and when.

No debt risk - With a prepaid card there is no chance of spending too much as you are limited to the amount you put on your card.

The card for travel - As well as being able to top up the card, depending on the specific provider, you will be able to use it at ATMs worldwide. Many providers now offer dollar and euro cards and offer a better exchange rate on their travel cards than what is commonly available from bureau de change.

DISADVANTAGES

Consumers might need to pay for some fees when using them . For example, card application fee, monthly services charge, card replacement fee , card renewal and so on. Besides that, it is not suitable for the consumers who do not have enough money and credit card is more suitable for them as they can repay it later.

LINKS:

http://www.moneysupermarket.com/prepaidcards/prepaid-cards-guide3.asp

www.fcac-acfc.gc.ca/eng/publications/other/Prepaid/PDFs/Prepaid-eng.pdf