Source: preCharge – Reddit
Recently https://hashcard.io/ had to shut down operations.
Over the last 15 years, many operations go under because of the very same reason. They relied on a single bank for their operations believing they will never get shut down, only to find they did. Fortunately being a global payment processor for 15 years has its perks. We would never risk our entire consumer network to a single point of failure.
The way preCharge debit cards will work is simple, at least on the front end. We are creating an entirely new BIN (bank identification number) class. Your preCharge debit card will have the following format 7xxx xxxx xxxx xxxx so for example, 7123 4567 8901 2345 – almost a marketing play as well because it puts it above all the rest 3(Amex), 4(visa), 5(mastercard), 6(discover). From there, each new card is tokenized. So, when a wallet holder initiates a transaction, depending on the network needed, visa, MasterCard, Amex or discover, is generated at the time of transaction.
Why is this so significant? Simple, it won’t rely on a single point of failure. We already have a bank in the United States, Switzerland, Hong Kong and Australia and more are being added. That means, if any single bank is ever lost, the consumer, aka wallet holder will never see the disruption in their debit card use. Don’t be concerned about the location, Switzerland is our European bank and Hong Kong is our Asian bank, it starts to get confusing but basically card networks are broken up into regions, so even if you are not in Hong Kong, it will work anywhere in the world, we are just using a Hong Kong bank for the Asian markets.
As it stands now, our cards are going to function in North/Central and South America, Europe, Asia & Australia and working now to add a bank in South Africa and Russia. That however will never be seen on the front end because you, the wallet holder will always only see your preCharge card, 7xxx xxxx xxxx xxxx, aka the power of one.
You will find in the coming months, most crypto debit cards will be shut down for the very same reason but as we told them in London, 90% of those ICOs you see will be out of business in a year, whereas preCharge has been in operations for 15 years and will be here another 15 years, changing the way the world spends, one transaction at a time.