Archives For prepaid card

COMPETITION~18

Known as one of the oldest and trusted motoring and traveling service house in South Africa, AA (automobile association) is now giving current and new clients an opportunity to win with AA.

You can now shop at one of the largest retailers in the country, with one of 150 gift cards with R500 loaded on each one.

AA LOGO

The competition will close on 16th March (there are only a few days left). It is open to all South Africans who use the services that the AA offer. You can stand a chance of winning a voucher from AA by doing one of the following:

Partnering with Makro, a large retailer/wholesaler of consumer goods, AA aims to offer clients something back for completing any of the processes above. These gift cards can be used at any Makro countrywide, and does not have any restrictions on the type of goods that it is used to purchase.

The winners will be drawn on 7th April, and all terms and conditions can be found on the competitions page of the AA website.

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4real

We usually see rewards programmes being issued for the everyday consumer. Benefits on swiping your card here, there and in return receive a portion back on your spend etc. A segment of our country which could also benefit from a rewards programme is students. 4real rewards have created a card that targets students and tertiary institutions, who can benefit from a range of different services if signed up to the rewards programme.

A student who has one of these cards, can present the card at the 4real retail network, which all have different discount structures to 4real card holders. When a card is swiped, a discount value is split 50/50 between the cardholder and the student’s tertiary institution who signs up with 4real rewards.

Some of the benefits of the 4real rewards card include:

  • Usage as a student card
  • Discounts at retail partner stores
  • Benefit’s structures for students
  • Access to discounted airtime

4real rewards, takes a rewards platform to a market that will benefit every day from discounts at retail stores, discounted airtime from mobile app’s, and a host of future benefits for students. Making money go further is always a key factor for students, this could be a rewards card that students can incorporate into their daily spending to gain great rewards from. 4real aims to assist the education sector with further benefits from student funding to even low price insurance. You can have a look at their offering here.

As millions turn to prepaid cards to help them manage their finances the American government has all but moved to remove cash for certain payouts. March 1, 2013, marked “the end of cash” for the U.S. government. Starting on that date federal payments such as Social Security, Supplemental Security Income, also known as SSI, veterans’ benefits, and retirement benefits for federal employees were, for the most part, no longer available in cheque form, and instead were only made available electronically.

In practical terms, this means that recipients of federal payments have two options: They can elect to receive their payments by direct deposit to a bank account of their choice, or they can use a government-issued prepaid card called the Direct Express Card. This is an easy decision for the vast majority of Americans, given the fact that they have had bank accounts their entire lives and just need to set up direct deposit. But for the millions of adults in America who do not have bank accounts, including seniors and the poor, this is a much tougher choice. These individuals can open an account at a bank or credit union, or they can go with the Direct Express Card. Consumers also have the option of switching to another prepaid card if it meets certain requirements. Without bank accounts, the unbanked have traditionally relied on cash-based financial services such as check cashers, money orders, and in-person bill payment to handle their transaction needs; expensive options that often carry a premium.

The usage of prepaid cards has grown significantly among the unbanked. In 2009 only 12 percent of unbanked consumers used prepaid cards; by 2011 18 percent did. And among the previously banked—those who once had a traditional bank account but no longer do—usage increased from 19 percent in 2009 to 27 percent in 2011. This suggests that prepaid debit cards are being used as substitutes for traditional bank accounts.

There are four types of prepaid cards worth focussing on:

Government-issued prepaid cards

Government-issued prepaid cards have been available for more than a decade both to access in-kind benefits. In the United States forty-one states currently use these cards to distribute unemployment benefits. In 2012, six states used prepaid cards to distribute tax refunds. These cards offer more protection from theft and loss making them more appealing.

Prepaid payroll cards

A growing number of employers issue prepaid cards—known as payroll cards—to workers who choose not to enroll in direct-deposit programs. One such employer is WalMart, which in 2009 began issuing payroll cards to its employees. Similar to government prepaid cards, payroll cards have regulations that are more comparable to bank accounts.

General-purpose reloadable prepaid cards

Our favourite type of prepaid cards, these cards are issued both by traditional brick-and-mortar banks and by other prepaid-card distributors. These types of cards have been marketed as a way to properly manage spending and, in some cases, as a bank account substitute.

Gift cards

Another favourite, these cards that can only be used in one store or a set of related stores are considered gift cards, not general-purpose reloadable cards. These cards can also often be used at a specific mall in any of the stores in the center. According to the Consumer Protection Act these cards need to have their balances stored for three years meaning you’ve got a high level of protection.

As we can see, prepaid cards are very much the future of payments for companies. With the move by the American government to no longer use cash or cheque’s it’s only a matter of time until governments around the world start following this lead. It’s an exciting time for prepaid!

travel 4

While holidays are a distant memory we’re still hearing horror stories of people that were stranded without cash while overseas. No matter how many times a traveller get ripped off at the airport or abroad, travel money always seems to be at the bottom of a holiday list. For many travellers, a casual approach costs.

Our solution: the prepaid card.

Prepaid cards, with Chip & Pin secure are made for use abroad.  You get a multi-currency prepaid card (which looks like any other bank card, displaying the MasterCard Acceptance Mark) and then get your four-digit pin number. Finally, just load money onto the card and you’re set to travel.

The handiest part is the fact that you don’t have to worry about looking after a wad of cash that you’ve taken out at the airport. There are many occasions, especially for backpacker, when it’s debatable whether it’s safer to keep money on your person in a travel body wallet, in a rucksack or back at the hotel/hostel. The benefit of having the prepaid card is that all you need is the card itself. And, if it gets lost or stolen, you can cancel your card like any other bank card; your prepaid card has the same Chip & Pin protection.

The other benefit is that you can take cash out as and when you need it. In the past users have been known to take out a reasonable amount of cash in one fell swoop, if using a debit card abroad, to avoid a series of ATM fees. With a prepaid card, this is no longer an issue.

Standard Bank has a great solution for prepaid, the TravelWallet.

You can also register to get an SMS every time you use your card, allowing you to keep track of activity on your account. You also have access to a free online statement. To take advantage of these services, simply visit http://www.standardbank.co.za/travelwallet and click on TravelWallet account status.

With TravelWallet your money is safe. In the event of theft or loss, your card can be stopped and replaced as soon as you have reported it by calling the lost card call centre on 0800 020 600 from South Africa or +27 11 299 4114 whilst abroad.

You also have the assurance of a fixed interest exchange rate if you use the card in the same currency as that loaded on your card. If you run out of money whilst abroad, your TravelWallet card can easily be topped up.

For travelling you cannot beat a prepaid card for both the safety and cost control abilities. Bon Voyage!

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It’s a wild thought: get paid into a prepaid card rather than a traditional cheque or savings account. The opportunity is interesting not only from the perspective of an individual with the account but also from the bank. A cheque or savings account doesn’t make a bank much money, they usually make their revenue of home loans and savings accounts. In the United States this is especially true as, for years, banks have given free checking in the hopes you would also take out a mortgage, run up your credit card balance or stash away a tidy sum in your savings account. Instead, you’ve been content to use your checking account and bypass the bank’s other offerings. In short, you aren’t making them any money.

Interesting stats about banks aside, for the consumer and especially the underbanked a prepaid card is a perfect solution. For the consumer they can be assured of a certain level of costs and for the bank they can be sure of a certain level of income per month from a prepaid card.

A salary on a prepaid card isn’t a perfect concept yet: how would you make car or house payments? However, for companies that have previously paid their staff in cash, the prepaid card presents a future of safety and security for both the company and staff. The company can either provide a new card monthly or recharge a single card.

While we wont be seeing a prepaid card replacing a bank account for most, for the underbanked it is a perfect solution to cash and the expense of a bank account.

Win with Tutuka

Rowan —  December 6, 2012 — 4 Comments

Christmas Tree

Just in time for Christmas Tutuka are giving away five R100 prepaid cards to help you understand the simplicity and joy of using a prepaid card over the festive season.

There are two ways to enter the competition, follow us on Twitter or comment on this blog with what you’d use your prepaid cards to buy these holidays. The beauty is, you can use a prepaid card for gifts, travel, fuel or anything else your heart desires. Comment on the blog and follow us to double your chances of winning.

TutukaMan

The competition ends on the 21th and we’ll contact winners soon afterwards.

Prepaid is a rapidly growing card payment alternative to traditional credit / debit cards and bank account transfers.

Providing the convenience of debit and credit cards, but without the need to hold a bank account, undertake credit checks, and be liable for overdraft charges or face the nasty end-of-month bill surprises.

Prepaid card market is expanding, as it gives an array of benefits over and above the traditional payment options.

• It’s safer than carrying cash

• It provides flexibility of payment

• Is a more secure online payment method

• Provides a business an alternative method of employee remittance

• Be used for Corporate benefits

• Be used for rewards and incentive schemes

• Provide online accounts facilities and secure payments

• Is more convenient, safer and quicker than issuing and cashing cheques

Prepaid cards can provide a variety of payment solutions for your customers, which include:

• Salary payments

• Expense reimbursement – cost saving and improved efficiencies

• Travel card – more secure and convenient alternative to cash and travellers cheques

• Youth cards – giving payment choice and awareness of money budgeting

We have invested heavily to develop our sophisticated in-house systems and capabilities and gained the accreditations necessary to quickly move forward to offer one of the best end-to-end prepaid solutions in the marketplace.