The application of pre-paid cash card for consumers
What is pre-paid cash card?
A prepaid card looks like a credit or debit card, and gives users the ability to purchase products and s
ervices with a card but with a crucial difference.
How does it work?
Firstly, consumers need to preload some money onto the card and money can be loaded by cash at a bank, Post Office, at Payzone or PayPoint terminals, bank transfer, through your employer or even by another credit card.
When using it for purchasing at a supermarket, they work in exactly the same way as a credit or debit card. You just simply hand the card to the cashier and you will be asked to enter your PIN number (supplied with the card) on an electronic keypad or to sign a payment slip so your signature can be matched with that on the back
of the card (if there is no Chip on the card). The total amount will be taken from your card immediately and the transaction is complete.
To shop online, you'll find the item you want to buy and click on to the website's "checkout" page before filling in your details and those of your prepaid card. As long as you have enough cash loaded on your card (the website checks this by the usual means of an authorisation), the purchase is completed and your item will be shipped to you.
Uses of pre-paid cash card
The usage of pre-paid cash card is considered as broad as following:
- Buying groceries and petrol
- As a replacement for travellers cheques or travel cash for a low cost alternative to paying for goods and services abroad
- Topping up your mobile phone
- Internet shopping including eBay
- Paying bills
- Transferring money to friends and family either in the
- Withdrawing cash from an ATM
Benefits of using pre-paid cash card
It is now available at thousands of retail locations and you can get cash at more than 1 million ATMs worldwide. Furthermore, consumers can only spend up to the amount of cash they have preloaded onto the card. This means there is no risk of running into debt as it has no credit or overdraft facility. It is a more convenient and safer alternative to carrying large sums of cash which means that consumers can enjoy protection against lost or stolen cards and unauthorized purchases.
Octopus application in Hong Kong
The Octopus card is a rechargeable contactless stored value smart card used to transfer electronic payments in online or offline systems in
Now, the Octopus is also used for payment at convenience
stores, supermarkets, fast-food restaurants, on-street parking meters, car parks, and other point-of-sale applications such as service stations and vending machines. Hence, it makes their life easier.
The Octopus card has been internationally recognized, winning the Chairman's Award of the World Information Technology and Services Alliance's 2006 Global IT Excellence Award for being the world's leading complex automatic fare collection and contactless smartcard payment system, and for its innovative use of technologies.
Furthermore, the Octopus card uses encryption for all airborne communication and performs
mutual authentication between the card and reader based on the ISO 9798-2 three-pass mutual authentication protocol. In other words, data communications are only established when the
card and reader have mutually authenticated based on a shared secret access key. This means that the security of the Octopus card system would be jeopardized should the access key be exposed. A stolen Octopus card reader could be used with stolen Octopus software, for example, to add value (up to HK$1,000) to any Octopus card without authorization.
Types of On-Loan Octopus cards
| Type | Cost and use |
| Child | Children aged between 3 and 11. This card is sold for HK$70 with an initial value of HK$20. Children's fares are deducted where applicable. |
| Student | For students attending secondary schools and universities. Discontinued in 2005 and replaced by Personalised Octopus Card. |
| Adult | The standard version of the Octopus card. This card is sold for HK$150 with an initial value of HK$100. This colour is also used for the logo of Octopus Cards Limited, the operator. |
| Elder | Eligibility varies between different public transport companies, and even between operating routes of the same type of service—for example, 60 years of age or above for Citybus, 65 for KMB. If no elder fares are available, adult fares are deducted. This card is sold for HK$70 with an initial value of HK$20. |
| Personalized | The rainbow-coloured Personalised card is available on registration. This card is sold for HK$100 with an initial value of HK$30 and a handling charge of HK$20. Students may also qualify for this card at HK$90 with their pictures and names. |
Touch ‘n Go for e-tailing
What is e-tailing? E-tailing is referring to the selling of retail goods on the Internet. It is synonymous with business-to-consumer (B2C) transaction. With the introduction of e-tailing, many companies are benefited from the convenience of the services. For instance, 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. It is an electronic purse that can be used at all highways in
We can see that it enhances the speed of paying for low value but high frequency transactions. Besides, 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.
Related links:
http://usa.visa.com/personal/cards/prepaid/index.html
http://www.moneysupermarket.com/cards/prepaid-cards-guide1.asp
http://en.wikipedia.org/wiki/Octopus_card
http://www.hong-kong-travel.org/Octopus.asp
http://www.octopuscards.com/consumer/general/global/en/aboutus.jsp
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