Worried about cashless transactions using debit card for fear of theft but want convenience of a card.
Worried about cashless transactions with the demonetisation of high value currency notes and shortage of cash people are opting for prepaid or preloaded cards to make small transactions as they do not want to use their primary debit card issued by the bank for the fear of skimming or data theft and I am afraid of using my primary debit card at small shops for the fear of scanning so I have bought a preloaded card from my bank for the daily use said Sayan Banerjee a software skillful.
Conferring to RBI the prepaid cards issued by the banks can be used to withdraw cash from an ATM purchase of goods and services at Point of Sale or online purchase and for national fund transmission from one person to another and such prepaid cards are known as open system prepaid valentines.
Though the prepaid cards issued by authorised non-bank entities can be used only for purchase of goods and services at physical or online stores and for inland fund transfer from one person to additional and such prepaid cards are known as semi closed system prepaid cards and these cards can be used only internally, and prepaid cards can be issued for an amount ranging between 500 rupees and 50000 rupees.
As per the information Prepaid cards allow secure transactions without carrying cash and remove the fear of compromising security as the card holder can only use it till the money preloaded in the card is beat said Adhil Shetty the CEO of BankBazaar.com, as he said.
Separately from prepaid cards people can use different type of cards such as gift cards travel cards and petro cards depending on their obligation.