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We get lots of queries about topping up your Snapper online, particularly around why you can’t just transfer money from a bank account straight on to your Snapper.

  The simple explanation is that Snapper is a lot like cash, and your money is stored in the electronic equivalent of a wallet, known as an “E-purse”, and not in a “Snapper account”.  With cash, you can’t go online and transfer money from a bank account and make it appear in your wallet.  You have to collect the cash somewhere, usually at an ATM or by getting cash out at a shop.  

The same is true for Snapper; to collect money your Snapper needs to be present at the time of the transaction so that the money can be loaded in to the E-purse.  This is achieved either by using a Snapper Feeder or Snapper USB when you top up online, or using the Snapper reader at a Snapper top up retailer such as a dairy.  

Before going any further it’s useful to consider what “money” actually is.  If you take a look at the definition of money on Wikipedia, you’ll find that it is referred to as: 

“a medium for exchange, a unit of account and a store of value”.  

While we have moved on somewhat from shekels of barley, these three descriptors are still valid in the world of cash, electronic money and online banking.

So in our modern world, what forms does the money we use from day to day take?  One way to to look at this is to break it down in to: physical cash, electronic cash, debit and credit.  Of course, there are lots of other ways to pay these days, but let’s consider these four for now.

Physical Cash – this is the most widely understood.  You simply exchange notes and coins for goods and services.  Cash is usually carried in a wallet or a purse, which can be opened without the need for a PIN (Personal Identification Number, usually four numbers).  If there’s a difference between the cost of goods and what you hand over, then you get some change back.  Cash is a full contact payment, in that it is generally passed from person to person.  The exception is ATMs and “cash out”, where you can use your bank card to get cash and have the amount taken from your account, before you then use it to buy things.

Electronic Cash – This is a lot like cash and is definitely not like your EFTPOS card.  You store money on a “smart card” device such as a Snapper Red or Snapper Sprat.  Each time you use it to pay for things, the correct amount is taken directly from the money on the Snapper.  Getting money on to your Snapper is a bit like getting “cash out”.  You can use cash, or use an EFTPOS card to draw money from your bank account, and transfer it on to your Snapper. 

Snappers work like cash in that the money is stored in the electronic equivalent of a wallet, called an E-purse.  Because paying with Snapper is like taking cash out of your wallet, there’s no need for a PIN, and because Snapper uses contactless technology, it’s even quicker than handing over cash (no fumbling, no counting, no change required).

Debit – This is when you draw money directly from your bank account, using a debit card, in order to make purchases.  The most common way to do this is using EFTPOS. When you swipe the magnetic strip on your debit card the machine identifies who you are and as an EFTPOS card provides a direct link to your bank, you need to tell it which account you would like to use and input your PIN for security.  The EFTPOS machine then uses this information to dial up your bank over a phone line and check your account.  It then checks that you have enough money in your account and decides whether or not to approve the payment.  There is no money stored on a debit card.  The card just provides access to an account with money in it.

Credit – This is similar to debit in that it provides a link directly to an account.  However, a credit account is a short-term loan facility that you pay off on a regular basis (in theory!).  As with EFTPOS, each transaction requires the EFTPOS terminal to dial your bank over a phone line and check you are good for the loan.  Credit card transactions also require a PIN or signature.  There is no money stored on a credit card. The card just provides access to an account with a credit limit.

In summary, the key differences are:

Cash – physical currency that you keep in your wallet.

Electronic cash – electronic currency that you keep in your “E-purse”

Debit – a bank account that you access with your EFTPOS card

Credit – a loan facility that you access with a credit card

Moving funds around between bank accounts is easy.  You can log on to your Trade Me account and move money from your bank account to Trade Me’s bank account.  You can pay your electricity bill by moving money from your bank account to your electricity provider’s account.  

Wallets and E-purses are different though.  As mentioned earlier, you can’t go online and transfer money from your bank account and make it appear in your wallet.  You have to collect it somewhere, usually at an ATM or by getting cash-out at a shop.  The same is true for Snapper; to put money on your Snapper it needs to be present at the time of the transaction. 

Although there are some similarities between cash and Snapper, there are also some key differences.  Because using Snapper is an electronic transaction, it’s possible to see a record of where you have used it.  If you register your Snapper you can see all of your transactions online at snapper.co.nz, including retail use and all of your bus and ferry trips.  Also, if you lose cash, you’ll be lucky if you ever see it again.  With Snapper however, as soon as you report a registered Snapper as lost or stolen we can block it from further use.  If after three working days you’ve still not found your Snapper we can arrange to transfer your Snapper balance to a replacement Snapper.

So next time you need to use public transport, you’ll be glad you’ve got money on your Snapper and that you don’t need to have a wheelbarrow full of barley with you to exchange for a ride into town.