Bank launches credit vouchers

New pre-paid credit vouchers will make shopping online available to the two-thirds of Irish adults who do not own a credit card from next month.

Permanent TSB bank has joined with Irish companies 3V Transaction Services and Alphyra, as well as international credit card company Visa, to launch what it says is the world's first pre-paid disposable credit voucher.

Consumers will be able to buy 3V vouchers ranging in value from €20 to €350 from convenience stores and other outlets from mid-September and use them to purchase goods and services over the internet or by telephone.

Niall O'Grady, head of marketing for Permanent TSB, said the 3V vouchers were aimed at three groups of consumers: those who have a credit card but are nervous about entering their security details online; people who don't have a credit card and have up to now been restricted in how they purchase certain goods such as flights; and people who have a credit card but want to control their spending.

Permanent TSB estimates that at least 600,000 Irish consumers will use the vouchers, which do not require credit checks or application forms and are not liable for the Government's €40 stamp duty on credit cards.

Users must first register online at www.3V.ie. They are then sent a card that they can use to buy vouchers in participating outlets. The vouchers, which cost €5 each, have a 16-digit number printed on them. At the same time, a text message or e-mail is sent to the customer with the expiry date and three-digit security code they will need to make purchases. Retailers treat the vouchers the same way they would treat a normal Visa card.

The prepaid credit voucher was initially developed and patented by 3V Transaction Services, which was set up by Irish entrepreneur Kieron Guilfoyle. Electronic transactions company Alphyra is the major shareholder in the company and it developed the software.

Unlike pre-loaded "smart cards" available in other countries, the pre-paid credit vouchers cannot be used at the point-of-sale (over the counter) but are restricted to online, telephone or mail order purchases.

The Permanent TSB-led consortium, which plans to launch smart cards in the UK and other European countries, yesterday said the Government's stamp duty made it uneconomical to offer this product here.