Time to learn how to spend wisely with single-purpose prepaid cards

Shanghai is guiding consumers to spend rationally and wisely on single-purpose prepaid cards.

A monthlong campaign kicked off on promoting single-purpose prepaid cards during the city's annual shopping festival to improve the credit of the industry and boost consumption.

Guidelines were released on Thursday on the rational consumption of single-purpose prepaid cards, aiming to optimize the consumption environment and protect the legal rights and interests of consumers.

The guidelines suggest consumers check the compliance information of the card issuers before purchasing. Such information can be found on Shanghai's single-use prepaid card service platform.

Consumers can also check the credit histories and ratings of card issuers via various channels such as the service platform mentioned above, the official website of the Shanghai Single-Purpose Prepaid Card Association, and the "shssca" WeChat account.

Also, signs showing the credit rating of the company's prepaid card business are available at most stores selling prepaid cards, on which a QR code is for consumers to scan to check detailed credit information before purchase.

Of note, the guidelines clarified the limits for the amount consumers can add to prepaid cards, which are, no higher than 5,000 yuan (US$740) for each registered card and 1,000 yuan for each unregistered card.

It is not recommended to buy a long-term prepaid card with a duration of more than three years.

Consumers should sign a card purchase contract whenever possible, read the terms and conditions carefully before signing, and keep written evidence such as invoices and receipts.

It is also suggested that they ask the merchant for a breakdown of costs after each purchase, and keep a good record of consumption.

During the monthlong campaign, the association has selected 102 stores of 13 compliant offline card issuing enterprises as the first batch of sites to publicize and demonstrate the compliant prepaid card business.

A total of 566 prepaid card regulation propagandists have been trained, according to the association.

There will be more than two such promoters at each site who can explain the regulations on single-use prepaid cards and give some advice, and remind consumers to spend rationally.