February 19, 2007

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  NEWS: NZ Welcomes Prepaid Debit Cards

  The nation of New Zealand is a very new player in the world of prepaid debit cards. With the cooperation of Visa New Zealand, the nation's postal service recently rolled out its prepaid Visa "Prezzy Card" to what all polls indicate is an eager consumer public. In the first few months of "Prezzy," a whopping 40,000 cards have been sold. By all accounts, the card is popular, and, ostensibly at least, a potential booster for the nation's commerce and economy. But "Prezzy" has detractors, who fear the very lack of strings attached (like minimum age, credit history, and cursory background check) that have made the concept of a prepaid debit card so hot all around the world.

  
  The "Prezzy" card is available in denominations from US$25 - $500, and is available at any postal outlet without proof of age, residency, or basically, anything. Some detractors fear that teens (and even younger kids) may use the access "Prezzy" gives them –acceptance to the global Visa network- to buy memberships to adult websites, or, much worse, allow criminals and/or terrorists to conduct business with near-total anonymity. Already, 10% of "Prezzy" transactions have been made online.

  
  One safety measure that the NZ postal service implemented towards this end is prohibiting any more than $100 in cash purchases of "Prezzy" cards, ensuring that untraceable card purchases are, at least, kept to small amounts. They admit that there is no way to keep undesirable types from amassing huge stores of low-amount cards to use for whatever unsavory purpose they might devise, but argue that putting additional restrictions on card purchases will counteract the very freedom that draws gift-givers and those unable to conventional obtain a credit card to "Prezzy" in the first place.
   

  
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