The application of pre-paid cash cards for consumers
People have been frantically looking for newer ways to make payments. One of the few types created is using Prepaid Cash Cards. This card is not to be mistaken for credit cards or debit cards. Though their concept is the same, all of them allows you to purchase items without literally handing in cash, there is one major difference.Credit cards allows people to buy first, and pay for the items later. Debit cards on the other hand is directly linked to the user's bank account and if any purchases is made, it would be deducted through the amount in their bank account. Which also means that one should not be able to purchase anything if their bank accounts are empty. Pre-paid cash card is a whole different thing altogether, it does not give you a loan (like credit cards) or neither is it linked to your bank balances (like debit card). It has a whole account by itself. In order to buy something using a prepaid card, money must first be deposited or pre-loaded into the account of the card.
Prepaid cash cards are not new in Malaysia. One of the most highly used prepaid card in Malaysia is the TouchNGo card. Thanks to having many many tolls in Malaysia, this prepaid cash card becomes a necessity in order to not slow one down while travelling. The TouchNGo card was firstly created for the purposes of tolls payment which then later started to expand. Now they are allowed to be used in KTM's and so on. Of course prepaid cash cards have their advantages such as they provide control to people so that they don't over spend and at the same time removes the risk of becoming in debt like credit cards. But at the same time they too bring their little disadvantages. Imagine yourself in a supermarket after a long queue to purchase some groceries, then when you've reached the counter, you realised there is not enough credit in your prepaid card or the counter does not accept the prepaid card you are holding. One word.. "pissed".
As much as many different ways have been formed for payment, nothing feels more secure than cold hard cash in your pocket. It certainly makes me feel safe because cash can bring you everywhere and cards without a reader is nothing more than mere plastic. Till Malaysia is equipped with a card reader at every store even a mini market or grocery shop, I prefer to always have papers with Agong pictures in it by my side.
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2 comments:
I admit, the prepaid cash card does sound like a good idea. After all, it does come with less adverse effects than its counterparts, the credit card and the debit card. On one hand, it does not allow for overspending and on the other it does not come with that nasty fineprint in which you get charged for spending a little more than you have in your accounts. Speaking from experience, my debit card has looted me of close to a hundred dollars in fines for spending more than I have in that account. Imagine paying $34 for each transaction that goes red. Unlike the credit or debit card, the prepaid card only lets you spend what you have topped in. But again, regardless of its perks, the idea of pre-paid cash cards would never fly till the day the customers can be confident of strolling out without cash and still being able to purchase items at any place to their liking
couldn't agree less.. I use to listen to how people had complained about their debit cards "overspending" charges were non other like rates of loan sharks
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