the application of pre-paid cash card for consumers.

A pre-paid cash card is similar to a debit card, credit card or smart card. As we know, what debit cards and credit cards are because it is normally used by the consumers but we seldom hear about smart cards. Smart cards is an electronic card containing an embedded microchip and looks like a plastic payment card. It is usually a “read-only” card, similar to a credit card. There are many types of application pre-paid cash that can be made by the consumers but I will choose two most common ones to discuss.

Firstly, it is applied for retail purchases. It is a purchase similar to credit cards. It also can be extended with other payment services. In the retail field, many of these services are aimed at those establishments where payments are usually made in cash, speed and convenience. For example, E-purses and contactless payments represent this type of value-added service. With an e-purse smart card application, money is loaded into the card from the cardholder’s bank account and the cardholder’s account is immediately debited. The value is transferred to a floating account at the bank or the system operator. This transaction is carried out online and is PIN protected, just like a cash withdrawal from an ATM. Cardholder’s can use their e-purses anywhere where e-purses are accepted. When an e-purse is being used, the value is transferred from the e-purse to the terminal and the value remaining in the e-purse is adjusted. Therefore, consumers can enjoying shopping with this pre-paid cash cards without bringing any cash in hand

Secondly, it can be used for transit fares. This program started in US in 1999 and is a permanent, contactless, rechargeable fare card that can hold up to $300 in fare value. This card can be used with 17 different transit systems including Metro-operated parking lots, the Metrorail, Metrobuses and other regional rail services. These transit cards also can be combined with payment cards that can be used to purchase goods and services such as snacks, bridge tolls, parking fees, or food in restaurants or grocery stores located near the transit stations. In addition, to handling transit fares, smart cards and other e-payment are being used for other transportation applications.

by Ng Pei Qi