4. Stored-value cards.
What look like a credit card or debit card act like a credit or debit card
Stored-Value Card
It is indistinguishable from a regular credit or debit card.
It is a card that has monetary value loaded onto it and that is usually rechargeable.
Monetary value is preloaded.
It is a card that has monetary value loaded onto it and that is usually rechargeable.
Monetary value is preloaded.
How it is look like??
Look like credit or debit card:
*it is a plastic and has a magnetic strip on the back ,the magnetic strip stores the monetary value of the card
*sometimes it may not have the holder’s name
*it is a plastic and has a magnetic strip on the back ,the magnetic strip stores the monetary value of the card
*sometimes it may not have the holder’s name
How &where can we use it??
●To make purchases offline and online in the same way as in credit card or debit card.
●You don’t need to have a bank account to get prepaid cards
●You don’t need to have a bank account to get prepaid cards
Two varieties for stored value card
1.Closed loop (single purpose)
Cards are issued by a specific merchants or merchant group.
ex.Sawa Card-Gift Cards -Jarir -extra.
Can only be used to make purchase from specific place.
ex.Sawa Card-Gift Cards -Jarir -extra.
Can only be used to make purchase from specific place.
2.Open loop(multipurpose)
Credit can be used to make debit transaction at variety of retailers
ex.MasterCard -Visa-Payroll Cards -government benefits card -prepaid debit card
Can be used any where the branded cards are accepted.
ex.MasterCard -Visa-Payroll Cards -government benefits card -prepaid debit card
Can be used any where the branded cards are accepted.
How can the user get benefit from Stored –value card??
He can issue them as a payroll or benefit cards or direct deposits
Where can you get your Stored-value card ??
●Merchants or merchant group sell (gift cards) Ex: jarir bookstore
●Financial institution and nonfinancial institution sell(preloaded cards) Ex: Sawa cards
●Financial institution and nonfinancial institution sell(preloaded cards) Ex: Sawa cards
Who is getting the most benefit from Stored-value card??
●Adults who don’t have bank account
●People with low income
●Young adults
●Senior
●Immigrants
●minorities
Major user of prepaid cards
●People with low income
●Young adults
●Senior
●Immigrants
●minorities
Major user of prepaid cards
Examples for Prepaid Card
1.BB&T EasySend Cards
Branch banking and trust
It is the easiest way to send money internationally ,it is simple ,secure card that you send to your recipient out of the country
How it works??
You deposit or transfer funds to your EasySend account and the receipt cardholder’s can withdraw money in the local currency at any ATM with the plus logo anywhere in the word
How it works??
You deposit or transfer funds to your EasySend account and the receipt cardholder’s can withdraw money in the local currency at any ATM with the plus logo anywhere in the word
MuchMusic Prepaid master card
It is a prepaid ,stored value and reloadable payment card that makes every day purchases easy, convenient ,and secure.
Can be used every where (worldwide) Online purchasing.
http://www.muchmusic.com/muchmusiccard/index
Can be used every where (worldwide) Online purchasing.
http://www.muchmusic.com/muchmusiccard/index
3.Visa Buxx
It is a reloadable prepaid card design specially for teen ,they get the freedom to make purchase online or in the stores and any where Visa debit cards are accepted.
Your teen only spend what’s on the card ,if they spend over the balance the transaction will be declined.
You can add the fund any time ,online or over the phone with convenient automatic transfers from credit card account.
Parents can track spending and check the account balance.
*website:
http://usa.visa.com/personal/cards/prepaid/visa_buxx.html
Your teen only spend what’s on the card ,if they spend over the balance the transaction will be declined.
You can add the fund any time ,online or over the phone with convenient automatic transfers from credit card account.
Parents can track spending and check the account balance.
*website:
http://usa.visa.com/personal/cards/prepaid/visa_buxx.html
Difference between prepaid and credit card??
In prepaid card cardholder don’t have a line of credit ,can only be able to access the prepaid amount of money you put in the card.