Absa and Visa International recently launched a re-loadable prepaid debit card for consumers who want to avoid the security risks of carrying cash.
The Absa Prepaid Debit Card has a one-off fee of R30, and there are no monthly management fees, Venete Klein, the executive director of retail banking at Absa, says.
Each card is valid for only three years to minimise the risk to you if your card is lost or stolen, Klein says.
The benefits of the card include free transactions at till points, one free balance inquiry a month and free prepaid airtime top-ups.
As with other debit cards, you have to enter a personal identification number when you transact at a till point to verify you are the owner of the prepaid debit card.
The card has no minimum balance requirements. You can transfer funds to the card via cellphone banking, online banking and an ATM. If you transfer money from your account to the prepaid card, you will have to pay an inter-account transfer fee, which will depend on the account.
You can use the card to withdraw cash but you will be charged ATM withdrawal fees. If you withdraw cash from an Absa ATM, you will pay R3 for the first R100 or part thereof you withdraw and 95 cents for every subsequent R100 or part thereof.
You can buy the prepaid debit card at any Absa branch. You will have to open an Absa account, if you don't already have one, to take advantage of the debit card.
However, the product is not a fully fledged account because transactions can be done only through the card. Because of this, you need to present only your identity document when you buy the debit card.