What is a Cash Card or Cashcard?

What is a Cash Card?

Cash card (or cashcard) in 1994 - 28 years ago was introduced by the local banks as a new form of cashless payment called cash card.

This is a plastic card with smart card technology that allows the holder to make low-value payments.

The cash card deducts the required amount from the value stored in the card and already paid for by the holder. Cash cards can be used at many retail outlets, car parks and vending machines. There is no personal identification needed to use the cash card.

Before we can say more on what is a cash card?, it is better to describe bit more on what is a Smart Card?.

Many people already use one or more smart cards in their daily life. The smart card can be a phone card, a card carrying our health information or health insurance information, or an electronic purse.

A smart card allows us to store digital "money" and to use this money later to pay for a ticket or buy a drink from a vending machine.

The smart card itself is a device, which is able to store data and excute commands. It is a single-chip micro-computer with a size of 25mm most.

This micro-computer is mounted on a plastic card of the size of a standand credit card.

Types of Cash Card

The 3 types of cash cards are:-

1. Common Cash Card - The common cash card may be bought and used by any body.

2. Organization Cash Card - The organization cash card is issued by the organization or associations for use by their members or staff.

It contains the standard cash card functions as well as personal information of the card owner.

It usually bear the unique design of the organization membership brand logo.

3. Cash Card function combines into the Smart ATM card - The smart ATM card combines the cash card function with other banking services like ATM access and NETS EFTPOS on one card. These cards are issued by any of the participating banks.

Cash Card Nationa-wide Launch

The cash card system was developed by the local banks and launch on a nation wide on Tuesday 26th November 1996. And operated by the NETS system.

NETS also introduced the NETS Virtual card which is a payment service that allows users tomake payment to businesses or individuals through online interfaces or mobile phones or smart phones.

A number of globla electronic payments providers now supply a new generation of its contactless payment card Cash Card.

The Cash Card e-purse was originally launched in 26 years ago on a contact-based smart card.

With the advent of new technology, the CashCard is being re-packaged to benefit from user-friendly, speedy and reliable contactless interface.

For example, CashCard is currently used in over 30,000 access points available at more than 12,500 merchants in the Asian country of Singapore.

The new global cash card payment now combines the existing CashCard payment features with Cepass, a new contactless payment standard.

Contactless technology makes it even easier for CashCard (or global cash card pay stubs) customers to make retail purchases and Electronic Road Pricing (ERP) payments, and to pay for services at supermarkets, libraries, gas stations, car parks and kiosks.

NETS pioneered the concept of cashless payment in Singapore. CashCard/Cepass complies with ISO 7816 and 14443 type B standards, which can work in both contact or contactless mode.

Cash Card Electronic Payment Evolution

Banks worldwide are testing and adopting contactless technology, with important trials currently under way in Asia, Europe and North America and Asia.

Several company's now have experience and expertise with dual interface cards, operating systems, manufacturing processes and contactless technology is the driving force in this global payment systems market. Cash Card and Contactless Payment Card is the first banking card that is delivering on a nationwide scale, and it is a sign of things to come.

Banks now works with VISA and MasterCard to develop a customized mask for reliable and fully interoperable contactless smart cards, compatible with all currently installed card readers. Cash Card is based on smart card's advanced technology, enhancing transaction speed and security for dual interface cards used in both contact and contactless applications.

Many institutional banks is today a leading supplier of contactless cards, tickets, RFID tags and readers to the mass transit, access control, banking, ID, supply chain and logistics markets. More than 200 million contactless cards, tickets and RFID labels are already in service worldwide.

Using the Cash Card

The cash card is accepted in many retail outlets, post office, government offices, car parks, vending machines and other service counters.

The process/procedure of using a cash card is relatively simple and is as follows:-

  • The owner hands the cash card to the cashier as if it is a cash.
  • The purchased amount is deducted from the cashcard.
  • A receipt will show the amount deducted and the balance remaining in the card.
  • If the balance is low, it may be topped up at ATMs, cash card terminals or machines.
  • A cash card has memory. At cash card top-up terminals, the user gets a printed statement of the last few transactions, including the place, date, time and amount.
  • Motorists need cash cards for crossing Electronic Road Pricing (ERP) grantries. As thevehicle passes the grantry, the appropriate amount is automatically deducted from the card that is inserted in the IU on the dashboard of the vehicle.

    The cash card system is an electronic money scheme. As it requires pre-payment, it is no different from deposit taking and should only be provided by licensed institutions.

    Stored Value Card

    The cash card is a multi-purpose stored vlue card (SVC). It offers consumers a convenient payment mode for small value purchases.

    A merchantselling a product valued at certain price is faced by a number of identical buyers.

    The merchant must accept currency if the buyer offers it, since currency is the (only) legal tender in this economy.

    In addition, each merchant has the option of accepting electronic cash cards and charge cards if they find it profitable to do so.

    The buyers are shoppers who purchase goods and services from merchants.

    A buyer can always use currency to pay for the transaction, and may use an electronic cash card or a charge card only if the merchant agrees to accept these cards. Electronic cash cards save buyers a substantial amount of time associated with currency transactions. Therefore, we willassume that electronic card transactions are instantaneous.

    However, buyers using electronic cash cards still face some other costs: 1, Loss of the card and, 2. Loss of e-cash due to magnetic errors resulting in a loss of reading capability.

    This costs highlights the limitation of the electronic cash card technology.

    Gift Card for Cash

    The Gift Card for Cash (or gift card to cash) giving is an action taken by an individual who purpases an item for another person for (supposedly) no-trade reason. Gift card to cash giving has been observed in all human cultures, countries, at all ages since the biblical time.

    Participation in gift card for cash or gift card to cash giving rituals start in day care, where kids from the age of three and up are being told by their teachers that they should bring a present to each child who celebrates his/her birthday.

    In all countries, gift card exchange for cash or sell gift card for cash or trade gift card for cash are given on wedding dates and some other family celebrations.

    However, all this cannot be compared to the magnitude of presents given on Christmas Day 25th December 2022.

    There have been several empirical studies investigating whether the gift card for cash or cash for gift card or redeem gift card for cash giving phenomenon can be justified on an economic basis.

    These studies found that in general the (money cashcard plus denominated) value to a gift-recipient happened to be lower than the value to the person who is giving the gift card to cash - which equals the price paid in the store.

    The study also found that holiday gift-giving destroys between 10 percent to a third of the value of gifts.

    The most important feature of gift card to cash giving is that the consumption choices are made by someone other than the final consumer.

    Cashcard ATM (automated teller machine)

    The Cashcard ATM (automated teller machine) use case definition is done by the actor.

    The actor represents the cashcard atm system boundary interface and prepares all the use cases for the system boundary interface.

    Note that this cashcard atm system can be done by a single individual or a team of individuals.

    Example of Use Case Definition for a 'CashCard ATM'
    Use Case Name: Withdrawal From Checking         UC ID: ATM-01
    Actor: Bank Customer
    Objective: To allow a bank customer to obtain cash and have the withdrawal taken from their checking account.
    Preconditions: Bank Customer must have an ATM cashcard, valid accounts, valid PIN and their available checking account balance must be greater than, or equal to, withdrawal amount. ATM in idle mode withgreeting displayed (main menu).
    Detailed Description
    ActionModel (System) Response
    1. Customer inserts ATM cash Card1. ATM reads cash card and prompts customer to enter PIN.
    2. Customer enters PIN.2. ATM validates PIN and displays menu with a list of transactions than can be selected.
    3. Customer selects Withdrawal From Checking transaction.3. ATM validates account and prompts customer for withdrawal amount.
    4. Customer enters withdrawal amount.4. ATM validates account balance is greater than, or equal to, withdrawal amount. ATM dispenses cash equal to withdrawal amount and prompts customer to take cash.
    5. Customer takes cash.5. ATM asks customer whether they want to continue.
    6. Customer indicates not to continue.6. ATM prints receipt, ejects cash, prompts customer to take card, sends debit message to ATM Control System, returns to idle mode and displays main menu.
    7. Customer takes card and receipt.
    If ATM cannot read cash card, then ATM ejects cash card.
    If incorrect PIN is entered, then customer is given two additional chances to enter correct PIN.
    If correct PIN mot entered on third try, then ATM keeps cash card and informs customer that they must retrieve card from bank personnel during business hours.
    If account balance is less than withdrawal amount, ATM infoms customer that the withdrawal amount exceeds their account balance and to reenter a withdrawal amount that does not exceed account balance. If amount reentered still exceeds account balance, ATM ejects card, informs customer that amount requested still exceeds account balance and bank policy does not permit exceptions.
    Alternative Courses:
    At any time after reaching the main menu and before finishing a transaction, including before selecting a transaction, the customer may press the cancel key. If the cancel key is pressed, the specified transaction (ifthere is one) is cancelled, the customer's cash card is returned, the ATM returns to idle mode and themain menu is displayed.

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