Paradise

The function of prepaid cards are just similar to credit cards. They offer the users to purchase products and services in the market but the significant difference is that user can only spend the amount that has been preloaded onto the card but not pay at the end of month.

There various way to reload prepaid cards such as reload through bank, post office or bank transfer. However, it depends on the prepaid provider company policy. Every company mayb have differennt policy, therefore, consumer need compare which will be more felxible while choosing prepaid card.

There are few major Advantages of prepaid card, such as:

i) Availability - Consumer can get a card withoud worry about credit history because there are no credit check available.

ii) Safety issue - Carrying a card will be more safer than carry cash especially when want to pay a huge transaction amount.

iii) Control - Parents can control their children's spending by just reload a certain amount into children card. Besides that, this can also limit consumer spending since the spending amount is just limited to the balance of the prepaid card, so that consumer do not have to bear debt risk.

PreCash had conduct a survey on application of consumer using prepaid card, the result are as follow:

1. To pay bills

2. They wanted a Visa card

3. They wanted direct deposit

4. To avoid carrying cash

5. To shop online

There are some other application that is common seen in Malaysia such 'Touch n Go'. Initially, it is just to use for pay toll fee, but after some time, Touch n Go card holder can use the prepaid card to paid train(KTM) fare also. Besides that, some of the busses company also allow passenger to use Touch n Go to pay the fare for example Rapid KL.

Some of the cafe is also promoting own shop prepaid card to consumer , for example Island Red Cafe(IRC) , but this is only restricted to their member only.

Other than that, some online games company also offer prepaid card to their players, for example i1game company.

Reference:

i) . 5 July 2009, from http://www.i1games.com/index.asp?show=games&link=direct&bid=16

ii) Guide to Prepaid Cards. 5 July 2009, from http://www.moneysupermarket.com/c/prepaid-cards/guide/1/

iii) Why people use prepaid card. 5 July 2009, from http://prepaidexpo.blogspot.com/2008/12/why-people-use-prepaid-cards.html