Pre-paid cash card for consumers

What is a prepaid cash card?

Basically, pre-paid cash card is an alternative way to make payment. It works by loading money into the card and you can use the card for various or specific paying purposes. It does not require deposit account and there is no credit or overdraft allowed. The limit of the card depends on how much electronic cash you have loaded in.

The application of prepaid cash card could be broken into a few categories:

1. Substitution of cash

- Prepaid cash card can be used as a paying or purchasing mechanism. We can pay by using this card rather than cash. It is convenient for the consumers because they do not need to carry much money when shopping. Other than that, it is safer than cash because we can recover the money loaded inside the card if the card gets stolen but stolen cash is usually not recoverable.

2. Purchase online

- Pre-paid cash card acts similarly with credit card which allows us to purchase items online. Online purchasing will be the future trend and it is usually not convenient for those people who are unable to register for a credit card. Pre-paid cash card can solve this problem as there is no requirement for salary or credit check during the application.

3. Accepted worldwide

- Usually, currency like Ringgit Malaysia can only be used to trade in Malaysia. However, present pre-paid cash card with Visa service allows us to pay for goods or services all over the world. A very popular example will be the Rush Visa Card in America.

4. Withdraw cash

- Most of the pre-paid cash card allows us to withdraw the balance in the card at ATM machine. However, it does not apply to all pre-paid cash card. The example of non-refundable pre-paid cash card will be the Touch and Go card of Malaysia.


Reference:

No Checking Or Savings Account? Use Prepaid Cash Card

Master Prepaid Card