S-Karta Social Card Debated in Czech Republic

• In Czech Republic, as the social reform is still making its way, 5,000 people have been testing a new means of payment designed for social benefits since the beginning of July. The S-Karta (Sociální karta) aims at limiting the risks of fraud and optimising benefits transfers. It should apply to all social beneficiaries as of January 2013.

• Only social benefits are to be transferred to this card displaying the same features as a traditional bank card.

• Transferred volumes should reach over three billion euros per year and service implementation-related costs are to be undertaken by the &;268;eská spo&;345;itelna bank, in charge of providing these cards to an assessed number of one million people.

Source: www.radio.cz

• Considered as means for most fragile customer segments to access cash, these cards are however criticised by anti-discrimination associations for instance. In fact, unlike original plans, no limits have been set on these cards (spending limits, kinds of purchases, etc.): as such, they cannot be viewed as efficient budget management tools.

• In France, the social card project could be a means for cardholders to save some time, avoid being robbed off their cash or, simply, to address the needs of fragile customers.

• According to the Caisse Nationale d’Allocations Familiales (French national family allowances offices), 61.9 billion euros benefits have been transferred by their services in 2011: in December 2011, over 11.4 million persons have received at least one social allowance from the CAFs (1.2% annual increase).