In today’s world, we often heard about plastic payments. What are these plastic payments? Basically, the present day plastic payment can be divided into pay three categories that is pay first, pay now and pay later. Pre-paid cash card for consumers are fall under the pay first category.
Pre-paid cash card or to be known as stored- value card is refers to a card either with a magnetic stripe or with a computer chip that is pre-loaded with cash. A pre-paid cash card can be disposable and reloadable. Anyone with cash can easily obtain a stored- valued card. It enables the cardholders to spend on purchasing in a manner which is similar to spending paper money or coins.
Several applications of pre-paid cash card include:
(i)Payment
-Transit system fare cards
Transit system fare card is the most common applications for pre-paid cash cards. It enables the collection of public transportation’s fare to be collected in an effective manner. Passengers need not to trouble themselves to take out their money in order to pay the fares. There are two types of pre-paid cash cards under this system. Firstly is magnetic stripe card. After each use, the destination, privileges and the fares will be magnetically encoded on the card
For example, the paper ticket with magnetic stripes that we use when we take KTM
and LRT.
Secondly is smartcard. It is typically a credit card sized which embedded with microprocessor or integrated circuit which can process information. Examples for this types of pre-paid cash card are:
In Malaysia we can use the Touch 'n Go card when we take any of the public transportation other than taxis.
-Payment for purchases
Pre-paid can also be used to make payment at convenience stores, supermarkets and fast food restaurant and vending machines. Many of the country already practiced it. The examples that we are familiar with is the Octopus Card which is widely used in Hong Kong and EZ-link in Singapore. The card can be used to make payment after purchases at Watson’s, 7-Eleven, Starbucks, McDonald’s and etc.
-Library photocopier
Pre-paid cash card can also be use to make payment at the library photocopier. For example card that we use to make payment at photocopier in UTAR.
(ii) Access control in building and for school administrative functions
Other than making payments, pre-paid cash card can also use to gain accessed into a building and for school administrative purpose. This is one of the applications of Octopus card in Hong Kong. In Singapore, EZ-link is also use as identification card for students in many institutions and those who are serving national service.
-Payment for purchases
Pre-paid can also be used to make payment at convenience stores, supermarkets and fast food restaurant and vending machines. Many of the country already practiced it. The examples that we are familiar with is the Octopus Card which is widely used in Hong Kong and EZ-link in Singapore. The card can be used to make payment after purchases at Watson’s, 7-Eleven, Starbucks, McDonald’s and etc.
-Library photocopier
Pre-paid cash card can also be use to make payment at the library photocopier. For example card that we use to make payment at photocopier in UTAR.
(ii) Access control in building and for school administrative functions
Other than making payments, pre-paid cash card can also use to gain accessed into a building and for school administrative purpose. This is one of the applications of Octopus card in Hong Kong. In Singapore, EZ-link is also use as identification card for students in many institutions and those who are serving national service.
References:
Prepared by: HO PECK KEE
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