The application of pre-paid cash card for consumers

Electronic cash cards are often confused with credit cards and debit cards. However, they are some very key differences between the two primary types of financial transaction card. Credit cards are the least like prepaid cash cards because with a credit card the fund are essentially borrowed from the lender, and then you pay the funds back. If the balance of the credit card is not paid back in full by the next statement, the remaining balance is charged interest. Basically, with a credit card you borrow the money and then pay it back later. Debit cards and prepaid cash cards are similar because they both use your existing money, rather than borrowing. Both debit cards and prepaid cash cards draw funds from your bank account, usually a checking account. The difference is that debit cards can be used without a personal identification number to make purchases where the card is not present. This is the case for online purchases where you enter your debit card information into an online form or Email it to the merchant. Debit card transactions usually need a personal identification number to be keyed into a terminal in order for the transaction to be authorized, but not always. This is why online merchants do not need your personal identification number and why you may come across a terminal or point of sale merchant that allows you to use your debit card with a simple swipe and no personal identification number entry.

Since prepaid cash cards always need a personal identification number to be keyed in for the transaction to be authorized, unless you tell someone your personal identification number, no one else can ever use your card. This means that if someone steals your card information, or your physical prepaid cash cards, you do not need to worry about them using your money. This is why prepaid cash cards are considered the most secure and safe financial transaction cards. The downside of prepaid cash cards is that you cannot use them to make "card not present" purchases, such as by buying something online. You can also not use prepaid cash cards in "quick pay" terminals that have a card reader but no keypad to enter a personal identification number.

The great thing about prepaid cash cards is that they are like a portable access point to your checking account. Automated teller machines are everywhere now, and you can use prepaid cash cards at automated teller machines to withdrawal funds from your checking account in cash, deposit funds into your checking account, and even make an account balance inquiry. You don't have to go to the bank anymore to get money out of your checking account, and you don't need to have a personal computer handy to check your balance. While you are "on the go" at the mall or running errands you can use your prepaid cash cards to see how much money you have left in your account, and get that money out as cash. This helps keep you from overspending and overdrawing your account. While automated teller machines usually charge your account a convenience fee, this fee is much smaller than the fee your bank charges you if you spend more money than you have in your account.