The solution is aimed at card issuers wishing to use pre-authorised cards to target new cardholder segments, including the unbanked and those with poor or limited credit history. The pre-authorised funds and smart card security protects issuers from potential bad debt and fraud whilst providing a new payment method for cardholders and merchants.

Pre-authorised cards will also provide new revenue streams in countries where bank account penetration is low or where there is high market demand for alternatives to closed loop payment solutions such as benefits payments or gift cards.

The first of its kind, the platform independent solution is an extension of Aconite’s existing payments portfolio. It can be deployed as a standalone pre-authorised payments solution or as part of a wider EMV migration package, incorporating full EMV transaction processing and scripting. Using adaptable interfaces the solution integrates easily into existing systems, providing a fast track route to processing pre-authorised cards.

Using the Aconite solution, the pre-authorised cards are linked to a "shadow account" on a central system, which could be a standalone or a ring-fenced part of an existing bank account. Funds pre-loaded into the shadow account set a limit value on the card for offline spending. Payments, typically authorised offline, gradually deplete the available funds on the card. The available funds on the card can be topped up by the cardholder at ATM, point-of-sale or online. For added convenience the cardholder can set-up automatic or periodic top-ups. The Aconite solution manages the entire process including shadow account, top up and settlement.

Mike Woods, Aconite's CEO said: "Aconite's pre-authorised payment solution is an exciting new addition to our payments portfolio providing a low risk, highly cost-effective method of payment. Pre-authorisation of funds allows banks to reduce fraud and debt whilst minimising telecommunications and central processing costs through offline transaction processing. For the first time, pre-authorised cards provide an economical alternative to low value cash payments enabling banks to develop brand new card propositions to meet their customers' needs."