Stored-value prepaid cards are “attractive
to consumers because they are portable, secure and offer
lower fee structures than traditional credit cards”,
says Katherine Carson,
of Performance Systems.
Most stored-value cards can be used at ATM machines to get cash, make money transfers, and to obtain
the balance of a current account. By using the card’s PIN code, cardholders can access the Internet,
make online purchases or conduct local
and long-distance calls, while making
purchases at any Visa or MasterCard retailer. With merchants now waking up to Point-of-Sale
Activation (POSA) systems, vendors
of stored-value products will be promoting their products
via the POS systems of distributors
and agents, using incentives such as the familiarity
of an existing distribution network, and the reduction of inventory.
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