The application prepaid cash card for consumer

With a debit card, the money for a purchased item comes directly out of the holder’s checking account (called demand deposit account). The actual transfer of funds from the holder’s account to the merchant’s takes place within 1 to 2 days. Master card, Visa, and EuroPay are the predominant debit cards.

Traditional debit cards are associated with bank checking accounts held by bankable people Visa/ MasterCard and member banks cannot issue normal debit cards to “Un-banked” people without checking accounts.

In the recent years, the “Prepaid Debit Cards” came into existence and popularity. The biggest distinction with “Prepaid Debit Cards” is that no checks are associated with Prepaid Debit Card accounts.

Prepaid Debit Cards are much safer for the banks to issue because:

• All transactions for these new debit cards are authorized online against account balances
• There are no “Floats” from written checks that can cause overdrafts

One of the examples of prepaid debit card is Visa card. Visa card is a stored value card designed to handle small purchases or micropayments. This chip-based card can be used in the physical (off-line) world or on the internet. When a purchase is made, the cost of the purchase is deducted from the cash loaded on the card. Visa Cash can be used only at vendors having special terminals displaying the visa cash logo.

The prepaid debit card applications are:

• General Spending Debit Card
• Payroll and commission payout Card
• Remittance - Funds Transfer within and across borders
• Affinity Group Card
• Travel Card
• Student Card
• Gift CardElectronic Benefits Payment Card – Government benefits