Prepaid credit cards.

Could you imagine being able to load a card......if you were a thief?

That capability would be like plates are to the mint...

Ok I am sorry you caught me....savant has larceny in his heart....

Michael B.
 
Quote from ElectricSavant:

Would you need a magnetic card reader at home to order on-line?

Michael B.
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Not if they have numbers like a credit card that you could manually type in, but I would not be surprised if that is coming soon.

I ordered some keyboard wedge card readers for the client who is setting up a gift card solution....$68.00 each.

They have keyboards for P.O.S. systems with card swipes built-in, so the thought that these card swipes becoming standard fare for the home/office computers is not unreasonable.

However, what I think we will see is fingerprint/thumb-print readers in all keyboards within a decade....and our credit cards/gift cards may also have fingerprint ID built in.

Bloomberg systems come with a thumb-print reader via usb connector, which keeps anyone but authorized parties from logging on to the Bloomberg terminal.
 
Wait....I buy something online......how does my chip in my card know this? If I type it in....dont I physically need to update the chip?

Michael B.


Quote from ARogueTrader:



Not if they have numbers like a credit card that you could manually type in, but I would not be surprised if that is coming soon.

I ordered some keyboard wedge card readers for the client who is setting up a gift card solution....$68.00 each.

They have keyboards for P.O.S. systems with card swipes built-in, so the thought that these card swipes becoming standard fare for the home/office computers is not unreasonable.

However, what I think we will see is fingerprint/thumb-print readers in all keyboards within a decade....and our credit cards/gift cards may also have fingerprint ID built in.

Bloomberg systems come with a thumb-print reader via usb connector, which keeps anyone but authorized parties from logging on to the Bloomberg terminal.
More...
 
Quote from ElectricSavant:

Wait....I buy something online......how does my chip in my card know this? If I type it in....dont I physically need to update the chip?

Michael B.
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My understanding is that the amount of money available in these pre-paid cards is not actually stored in the information on the card itself.

What happens is you buy a blank card that has a serial number on it. The magnetic card actually contains the serial number of the card, and maybe some anti-theft info.

They you "charge" the card, and the amount "charged" to the card (pre-paid) is stored on an internet gateway of a company like Shift4. The "charged" amount is the pre-paid amount of the card.

When you go to swipe or use the card, the internet transaction runs through the following steps.

1. The swipe is made or the number is inputed.

2. This info is sent via the internet to a server that tries to capture an amount requested from the account where the funds are stored (the pre-paid account).

3. The amount is deducted (if sufficient funds are available) and the balance post sale/capture is recorded for the next transaction. The sale is rejected if the amount of the sale exceeds the amount in the pre-paid account.



Not unlike a credit card, is it?
 
Whole foods checks my receipt when I use my Debit Card....

I asked why? They were checking to see what number printed from the magnetic strip to the cash register receipt.

They said there were some white collar fraudsters who were able to alter the mag strip on the card to use another account number other than the one on the card....

These same fraudsters would be able to load a pre-paid card without a paper trail perhaps...

Michael B.
 
Ok so shift 4 is my checking account for my debit card right? Same thing right?

Michael B



Quote from ARogueTrader:



My understanding is that the amount of money available in these pre-paid cards is not actually stored in the information on the card itself.

What happens is you buy a blank card that has a serial number on it. The magnetic card actually contains the serial number of the card, and maybe some anti-theft info.

They you "charge" the card, and the amount "charged" to the card (pre-paid) is stored on an internet gateway of a company like Shift4. The "charged" amount is the pre-paid amount of the card.

When you go to swipe or use the card, the internet transaction runs through the following steps.

1. The swipe is made or the number is inputed.

2. This info is sent via the internet to a server that tries to capture an amount requested from the account where the funds are stored (the pre-paid account).

3. The amount is deducted (if sufficient funds are available) and the balance post sale/capture is recorded for the next transaction. The sale is rejected if the amount of the sale exceeds the amount in the pre-paid account.



Not unlike a credit card, is it?
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Quote from ElectricSavant:

Ok so shift 4 is my checking account for my debit card right? Same thing right?

Michael B
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Same thing, but a debit card doesn't have a fixed normally tied to the life of the card, or is it tied to perhaps a line of credit.

Also, the pre-paid cards likely don't pay interest, which debit cards tied to bank accounts do.

I don't' see pre-paid cards replacing debit cards, but they will have their place in replacement of cash.

Think of a company who can issue this card to an employee who is traveling on business and doesn't want to give out the company credit card.

If the debit card is lost or stolen, the amount at risk is only the amount in the account.

Those who have had their credit/debit cards lost or stolen know the hassle involved in getting set up again.
 
Could I load my card from any retail location? Will they give paper check writing privileges?

If so I might see that the prepaid card could be more convenient.

I would like to earn interest from shift4 though....even if its just 1.75%....just for the thought of it....

Michael B.
 
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