Pre-paid cards reassure net shoppers

Companies such as Splash Plastic, Global Internet Billing and Smart Creds are introducing pre-paid cards as an online alternative to credit cards.

The new cards could be the answer to those who are wary of shopping online because of security concerns - a whopping 46 per cent of people, according to a recent Mori poll.

Splash Plastic dispatches cards free once they have been requested via the company's website. Consumers can then 'charge up' the card to whatever value they want at shops around the country. Once online, they can buy goods to this value at a wide range of participating websites.

Global Internet Billing's cards work in a similar way, except that each card is website specific.

Smart Creds' offering works in the same manner as pay-as-you-go vouchers for mobile phones. They can be bought in units of £20 from post offices throughout the UK.

As each of these pre-paid cards has a finite value, the risk attached to using them online is minimal. If someone steals your card, you only lose the money you have credited to the card. If someone does the same with your credit card the damage can run into thousands.

Pre-paid cards are also handy for people who, for one reason or another, do not have a credit card. Another advantage of the pay-as-you-shop model is that it is less conducive to impulse buying and can help you keep a cap on spending.

See also:

Internet payment cards target teens

Payment cards have been launched that allow teenagers to buy goods over the internet without using a credit card.  22 Nov 2000

Pre-paid cards aim to boost online sales

A new payment system for buying goods and services online for as little as a fraction of a penny was unveiled at the ECTS video games trade show in Olympia today.  04 Sep 2000

Secure payment system for carriers

Mastercard and Motorola have developed a secure credit card payment system for wireless carriers.  26 Jul 2000

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