One can simply start using prepaid cash card when money has been loaded on to a prepaid card by cash at a bank, Post Office, at Payzone or PayPoint terminals, bank transfer, through your employer or even by credit card.
When using for purchasing at a high street store, they work in exactly the same way as a credit or debit card. When purchasing just simply hand over the card and then you will be asked to enter your 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). The total amount will be taken from your card immediately and the transaction is complete.
The examples of pre-paid cash card are General Spending Debit Card, Payroll and commission payout Card, Remittance, Affinity Group Card, Travel Card, and Student Card. There are several benefits by using those pre-paid cash card, such as:
1. The payment quickly and securely moves “Checking Account Like” funds without the hassles or risks involved with paper checks
2. Security features such as personal identification numbers (PINs) protect consumers against theft and fraud
3. Consumers prefer Prepaid Cash Cards because they act virtually the same as cash, only with much more security
4. Consumers who make debit card purchases are free of interest charges associated with credit cards
6. Bill Payment and On-line Purchases – Un-banked consumers can pay bills and purchase products and services on-line or through phone calls.
The application of Smarts Cards in Malaysia are:
1. Retail purchases (purchases using credit cards)
2. Transit fares (paying for bus and taxi rides, parking, and so on)
3. E-identification (smart cards storing personal info, for example Malaysian identity card and Malaysian International Passport)
4. Health care (stores health data about patients, allergies, pass medical records and etc)
Pre-paid Vista Cash Card is issued by Four Oaks Bank & Trust Company that given the opportunity for consumers with poor credit record and young children by not spending more than the balance on the card. It offers a secure, cost-effective, and convenient alternative to paying by checks or cash. These products enable many consumers to access their pre-funded pool of funds to make everyday purchases, pay bills, and even receive direct deposits with a Visa prepaid cash card. Visa also permits travelers access to money at automated teller machines in 65 countries and book the train tickets by offering prepaid cash card such as Metro Card in New York City.
Touch ‘n Go (TnG) smart card is used by Malaysian for electronic payment system to toll expressway and highway. It is expanding its business to retail purchase by starting with fast food industry that enables consumers to buy dough nut, burger or fast-food from 21 outlets such as Burger King, 7-Eleven, Dunkin’ Donut. It is imitating the success of Hong Kong’s Octopus Card by setting 5 to 10% of the card holders for retail purchase as current target of the company.
Octopus Card was launched in Hong Kong on year 1997, September. It is a rechargeable contactless stored value smart card to transfer electronic payments in online in offline system. It is widely used in payment system for transportation, supermarkets, fast food restaurant, car parks and other pint of sale application such as service stations and vending machines that have achieved good outcomes.