Reloadable debit card is a dual purpose plastic for usage on ATMs and on Point of Sale terminals at merchant locations. The prime purpose of the card is to provide a secure and convenient alternate to carry cash without encumbering the consumer. The main theme of the card is to pay now, buy later.
Target Market
Target market of the prepaid card is students, non-banked consumers, travelers, unable or unwilling to use traditional banking channels such as retail bank.
Key Features
These cards are nameless cards and carry the program identifier on their face instead of the cardholders’ names. At the back end there is an account linked to each card.
Prepaid cards are some sort of demand liability/deposit accounts in which cheque book is not required for transactions. It has instant issuance, with simple processing, saving time for the customers as compare to a deposit account opening procedure at a bank. A Reloadable debit card works on the lines of the concept of prepaid mobile phone and internet cards where the customer acquires/loads a desired amount of the card from readily accessible locations and uses it till expires or is depleted.
Reloadable prepaid debit cards, if VISA enabled, will be used internationally. This extra feature will attract high net worth clients and will facilitate them while traveling abroad.
This kind of card gives ease to the cardholders for cash withdrawals from ATM, funds transfer to/from a checking account, balance transfer to other prepaid card and bill payments. Customers can also shop online at the websites after registering for online shopping through these cards. Reloadable card can also be sold to the employees of corporate entities for salary disbursement and business expenses management. Debit card must have an expiry date on it. Customer will be informed for all transactions via sms on their registered mobile number. Customer can view his statement online and get print out of its e-statement.
Customer Due Diligence
This Reloadable card should comply with the Customer Due Diligence required under Prudential Regulations issued by the central bank and Anti Money Laundering rules and regulations issued by financial Action Task Force (FATF). National Identity card should be verified from the identity card issuing authorities. Card should only be activated upon positive verification of the identity card.
Restrictions
This kind of cards should not be issued to Blinds and illiterate people. Moreover, limitations are also placed on the spending and withdrawal transactions as well as on balance in the card.
Death Of The Card Holder
In the case of death of the card holder, remaining balance will be transferred to the legal heirs upon completion of legal formalities applicable as per law of the land.
Lost Cards
Customer can block his lost/stolen card immediately by contacting tele-Customer services representatives at the contact center.
Card Fees And Charges
There will be card issuance fee, re-loading charges, international usage charges etc. In case of lost/stolen cards, duplicate card issuance fee will be charged. All applicable taxes, duties and levies will be recovered as per laws in force.