The Application of Pre-Paid Cash Card for Consumers

What is Pre-Paid Cash Card?
Prepaid cash card is using our existing money, rather than a credit card, which we borrow the money and then pay it back later. Prepaid cash card draw funds from our bank account, usually a checking account.

The advantages of prepaid cash card are:
1) Secure and safe financial transaction cards. It always needs a personal identification number to be keyed in for the transaction to be authorized. If someone steals the card information, or the physical prepaid cash cards, we do not need to worry about them using your money.

2) Portable access point to the checking account. Automated teller machines (ATM) are everywhere now, and we can use prepaid cash cards at ATM to withdrawal funds from our checking account in cash, deposit funds into our checking account, and even make an account balance inquiry. We don't have to go to the bank anymore to get money out of our checking account, and we don't need to have a personal computer handy to check the balance.

The downsides of prepaid cash card are:
1) Cannot use prepaid cash card to make "card not present" purchases, such as by buying something online.

2) Cannot use prepaid cash card in "quick pay" terminals that have a card reader but no keypad to enter a personal identification number.


Examples of Pre-Paid Cash Card:

Touch ‘n Go Card (Malaysia)

Touch ‘n Go card is an electronic purse that can be used at all highways in Malaysia, major public transports in Klang Valley, selected parking sites and Theme Park.

Touch ‘n Go uses contactless smartcard technology. The card looks similar to a credit card. User can continue using the card as long as it is pre-loaded with electronic cash. User can reload the card at toll plazas, train stations, Automated Teller Machines, Cash Deposit Machines, Petrol kiosks and at authorised third party outlets. Reload denomination is ranging from RM20 to RM500.

Touch ‘n Go enhances the speed of paying for low value but high frequency transactions. Apart from the speed, it is also very convenient because user no longer need to prepare for small change or wait in queue at the cash lane to complete the transaction.


Octopus Card (Hong Kong)

Octopus is an electronic payment system using a contactless smartcard, which use at Hong Kong. Octopus is a trademark of Octopus Cards Limited.

In the beginning they aimed to develop a simple way to pay fares on public transport in Hong Kong.

Then they extended their reach into simple micropayments for purchases in retail outlets and a simple way for cardholders to gain access to buildings and schools and to identify themselves.

Today, over 1,000 service providers accept Octopus, and new uses are regularly being added. Octopus' success is important to Hong Kong people not only because it's part of everyday life - it's also made everyday life so much easier.