The application of pre-paid cash cards for consumers

What is pre-paid cash cards for consumers?

Pre-paid cash card also known as “stored value” card. It looks like a credit card and debit card and they offer the same function to purchase products and services but with an important difference – you only can spend the balance that you have been preloaded into the pre-paid cash card. As a result, you will not have the risk of running into debt as the pre-paid cash card has no credit to spend.

There are three application of pre-paid cash card:
(1) Closed system prepaid cards

Closed system prepaid cards also known as merchant gift cards. It have emerged and replaced the traditional gift certificate. “Closed system” mean the cards only can use at a single merchant, that means closed system prepaid cards can be used only at the retailers that issue them. For example, the consumers only can use the cards at the particular merchant that issue the cards at the fixed amount of the card. There is a variation on the closed system card, which called semi-closed system card.

(2) Open system prepaid card
Open system prepaid card is a multipurpose prepaid card that can be used at any merchant that accept a card that operates on a particular payment system or network such as an association network and etc. So, it also known as network branded prepaid card. Open system prepaid card has wide range of function than closed system prepaid card. The common example of this kid of prepaid card is aka Network-Branded Prepaid Card.

(3) Prepaid Card Advance
It is a technological advance that enables the cardholder to manage their prepaid card account by using their mobile phone. As a result, it may enable the cardholder to initially load the card, fill-up their account, obtain a balance, transmit funds to secondary cardholder and temporarily block a card easily.