Tuesday , December 6 2016

Plastic and safe: Here are the possibilities for cashless transactions

Worried about with debit card for fear of stealing, but want convenience of a card?

card-limit

Hyderabad: By the demonetisation of high value currency notes and lack of cash, people are choosing for prepaid or preloaded cards to make small transactions as they don’t want to use their major debit card issued by the bank for the fear of skimming or data robbery.

“I am afraid of using my main debit card at small shops for the fear of scanning. So I have bought a preloaded card from my bank for the regular use,” said Sayan Banerjee, software professional.

According to RBI, the prepaid cards give out by the banks can be used to draw cash from an ATM, pu-rchase of goods and services at Point-of-Sale or online purchase and for domestic fund handover from one person to another. Such prepaid cards are acknowledged as open system prepaid cards.”

However, the prepaid cards give out by authorized non-bank entities can be used only for buying of goods and services at physical or online stores and for domestic fund transfer from one person to another. Such prepaid cards are known as semi-closed system prepaid cards. These cards can be used individual domestically. Prepaid cards can be issued for a volume ranging between Rs 500 and Rs 50,000.

“Prepaid cards allow secure trades without carrying cash and take away the fear of compromising safety as the card holder can only use it till the cash preloaded in the card is exhausted,” said Adhil Shetty, the CEO of BankBazaar.com.

Unable to get minor change for Rs 2,000 note, the only notes dispensed by ATMs at most of the places, public are paying wages of house servants through prepaid cards.

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Apart from prepaid cards, public can use different type of cards such as travel card, gift cards and petro cards depending on their necessity. If people want to use plastic currency for giving pocket currency to their children, they could use e-wallet cards like Axis Bank, ICICI Pocket Lime or those offered by your bank. These allow you to handover money from your main account seamlessly. Specific purpose cards like petro cards or those supplied by any commercial creations could be used at places, where the card was planned for use.

Different forms of plastic money

Prepaid card

You need to buy these cards from banks. Cash can be reloaded several times.

It can be used for buying offline or online and also can be used to withdraw cash from ATMs.

Ideal if you don’t want to use main bank debit card or give your servant for shopping.

It could be used to pay

Servants who don’t have bank balance sheet.

Prepaid cards give out by non-bank entities could be used to buy online and offline products but can’t be used to draw cash.

Gift card

Gift card is almost similar to prepaid card in features, except that you cannot withdraw cash and it cannot be reloaded with cash, if you exhaust the available money.

Petro card

This card is issued by oil companies and can be used for filling fuel. This card can get you loyalty points E wallet card

Some banks which offer e-wallet apps issue these cards. These cards allow users to buy products offline by swiping the ewallet card.

Shop-specific cards

Stores like Shoppers Stop, Lifestyle, Cleartrip, Big Bazaar, Dominos, etc issue preloaded cards. Some of these cards can be used various times only at specific store.

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