Pre Paid Card

Pre paid card function testing for a micro finance institution in India

June 2025

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Overview

MFIs carry out their day-to-day customer transactions by engaging field level staff who meet customers for disbursement of loan, collection of repayments, sale of third party products etc. Hand held devices are used for doing financial transactions, which helps in establishing user identity, captures each transaction and also provides receipt to the customers for their transaction.

Business Need

Our client - who is one of the leading MFIs in India was disbursing loan by way of cash to the customers at their branches and handling such higher volumes of cash transactions was leading to operational issues. To improve the efficacy of the system and to cultivate Card based transactions among urban under-privileged class, the MFI decided to implement pre-paid cards for their customers.

Solution

NetBook and Card Readers replaced all Hand Held devices for carrying out transactions. Smart cards are used for loading the Loan Disbursement Value and “withdrawal by cash” has been enabled at ATMs/POS Machines. These cards can also be used as normal Pre-Paid Cards. All types of transactions such as Loan Disbursement, Loan Repayment, payment towards third party products besides normal cash deposits and withdrawals can be handled using smart cards Below processes were identified for the implementation ➢ Issue of Card and Personalization  Loan disbursement ➢ Loan Installment Collection

VSM’s Role in the Project

VSM undertook End-to-End Testing of this Project. Our project broadly covered the following functionalities:
➢ Enrolment of Customer for Pre-Paid Card Issue
➢ Card Personalisation Using Card Printing Application and Card Personalisation Device
➢ Authentication of Customer in Card Reader by swiping the Smart Card
➢ Downloading Disbursement details in the NetBook
➢ Impregnating the Pre-Paid Card with Loan Disbursement Value
➢ Withdrawal of Cash at ATM
Test Scenarios and Test Cases were written by us covering the above functions and executed. Interface testing between Card System, MFI System, Net Book Application and Card Reader were carried out by us.
➢ Test Scenarios and Test Cases prepared by us were exhaustive covering all the processes
➢ Test Execution cycles were planned and executed with care to identify the bugs
➢ Bug rectification were followed up with the developers for timely rectification

Benefits

➢ Pilot Implementation of the Project was completed within a short period
➢ Roll out of the Solution to other Branches helped our client manage their cash operations efficiently