The application of pre-paid cash card for consumers

The pre-paid cash card’s design is same as debit card and users can make cashless payment but only can spend the balance that has been topped-up. There are many countries implemented the pre-paid cash card, such as, Touch N GO in Malaysia, Octopus in Hong Kong and Ez Link in Singapore. Users are able to use the card anywhere as it is accepted. It is more safety instead of carrying too much cash.

Touch N Go in Malaysia is mainly used in highway tolls, public transportations and some selected car parking space. It uses contactless smart card technology and users can continuously use the card as long as it pre-loaded with electronic cash. Users can save time and need for being waiting in queue and prepare small change.

Octopus is widely used in Hong Kong and it was launched in year 1997. The card is an electronic fare card that used to transfer electronic payment in online or offline system in Hong Kong. The card is used for payment at convenience stores, supermarkets, restaurants, car park, public transportation and so on. Users still can travel n purchase stuff by the card instead of carrying cash on the hand.

The application of the pre-paid cash card is good to implement as it does not provide credit facility and prevent users run into debts. Touch N Go is in process of advancement as it expanding their application and services towards the retail purchase, such as, fast food store, Caltex convenience stores, Cinema and so on. Therefore, in our opinion, the application of Touch N Go will be more advance and provide more functions in order to simplify our daily life in future.

1. Mobile payment systems in Malaysia: Its potentials and consumers’ adoption strategies.

Mobile payment is a payment method which is still developing with the growth of WiFi and 3G cellular phone systems. Instead of paying with cash, check or credit card, a customer can use the mobile phone, Smart phone or Personal Digital Assistance to pay for several services. There were quite a number of mobile payments that available in Malaysia such as moneyMe, Mobile money and etc.

Mobile payment has brings some advantages to the consumers and has the potential to growth in Malaysia. Mobile payment has the ability to pay the services without having to carry cash or line up in a long queue or present in the store.

There are many company has also coming up with the same concept and even with more functional such as Near Field Communication(NFC) technology was introduce by Visa, Maybank, Maxis, Touch n’ Go. This contactless technology has allows the users to pay for their goods and services by waving their phone over an electronic reader. Visa has already adopted this technology in its payWave contactless credit or debit cards.

Other than the potentiality of Mobile Payment, the consumers will also comfortable with the advantage of mobile payment. Mobile payment is fast and easy because it is ubiquitous, the consumers can pay for the services anytime or anywhere. Besides that, the mobile payment paired with reliability and safety as the payer and payee can authenticate and record the transaction.For moneyMe, the records are controlled with a personal PIN and the account is not stored on the mobile phone, so if the customers lose the phone, the moneyMe will freeze the account until further notice.

Mobile payment is the convenient technology that makes life easy. Consumers can pay for the goods and services anytime, anywhere or to anyone. By the way, this will reduce the risk of theft also.

For more information about mobile payment, can visit the following links :
http://www.mobile-money.com/index.html
http://www.com2u.com.my/transaction.html

Electronic Currency

Electronic currency, also known as electronic money, electronic cash, digital currency, digital cash as well as digital money. The use of the electronic money is done through the computer networks, the internet and also the digital stored value system. This money is only exchange electronically. It assisted in the online-based purchases and sales transaction conveniently.

Electronic benefit transfer (EBT)
--one of the examples of the use of electronic currency.
--It is the business-to-business E-commerce
--use to made payment electronically.

E-Check
--is also one of the electronic currencies.
--function as the paper check.
--an electronic version of a paper check with some additional function as compare with the traditional paper check.
--an useful tool for online shopping payment.

Advantages

Fast

It serves as a universal media of exchange which allowed users to make quick online payment ubiquity at anywhere anytime provided that there is an internet connection. With the speed of transferability, it enables the users to send and receive money instantly from anyone all around the globe.

Confidentiality

Privacy Current electronic currency systems vary in their effects on privacy from total anonymity, in which personally identifiable records are not created (blinded coins), to audited systems that collect and store every aspect of each transaction. One of the most attractive features of electronic currency is that, unlike real cash, it is anonymous. That is, when a electronic currency amount is sent from a customer to a merchant, there is no way to obtain information about the customer.

Security

The security of electronic currency is provided by the use of encryption. Some experts are weary about the security of online transactions.
Various types of safeguard are there to identify the fraud, charge back prevention, funds verification, PIN verification and others security system.
As an example, the use of RSA cryptography makes it almost impossible to break the code of a digital signature. Additionally, the enacted digital signature statutes require a certification authority to use a trustworthy system.
Therefore, even though there is speculation about the security of the Internet, electronic currency consumers are probably more secure in their transactions than the more traditional ways of doing business.

Disadvantages

Fraud

--is the MAJOR disadvantage of electronic currency.

It is because, if a consumer somehow misplaces his private key and a perpetrator uses it to withdraw funds, the bank would never know and the consumer would be liable.
Additionally, if the security code is broken and the message is intercepted, the hacker will be able to perpetrate fraud on the recipient of the message.

Peer-to-peer Double Spending

--is a potential drawback, if the consumer chooses a peer-to-peer transaction.
Whereas, in all other transactions in the electronic currency system, the bank will be able to check the serial number of each coin in a transaction against its database of spent coins, and if the coin has been spent, the transaction will be denied.

Illegal Activities

--Problem arises when it come to the collection of taxation.
--Additionally, electronic currency also creates the ease of possibility of money laundering.

Therefore, to encourage the implementation of E-currency,
more rules and regulation must be created to solve the disadvantages and problems of using the it, so that E-commerce could achieve its full potential in the future.

References:

http://www.murdoch.edu.au/elaw/issues/v6n3/ishman63_text.html

http://en.wikipedia.org/wiki/Electronic_money

www.amggateway.com/how_it_works-eCheck.html

Credit Card debts: Cause and Prevention

Do you like to use 'Future' money?

How well do you plan your budget?

Do you know many people declared bankrupt due to credit card debts?

Today's people like to purchase and pay by credit cards, as they are using the future money. Many people swipe without thinking, measuring the risk of being blacklisted and declared bankrupt for fail to pay their credit card debts. Many of them never realized the consequences from financial and non financial perspectives when they get a credit card. There are many factors for people incurred credit card debts, lets discuss the factors.

Causes of Credit Card Debts:

Unemployment
One of the major causes is unemployment - Many households use credit card to purchase groceries, utilities and other expenses purposes to maintain their lifestyle. When the credit card holder of the households has loss their job and remain unemployed during short periods, may cause the rise in credit card debts and cannot pay due to reduction in income. This happened especially during the economy crisis and companies start to lay off their employee.

Poor Money Management
This is one of the best reasons for today's households have accumulated a lot of credit card debs. It happened because people didn't planed well for their monthly spending and do not pay their bills in time. Many people never realized some of their spending are useless and unnecessary, this lead to a rise in debts by using credit cards.

Less or no savings
As we don't know what will happen tomorrow, we should have at least saving of 4-6 months living expenses. Nowadays, people tend to spend more than what they earned; so it is very hard for them to have savings. So if they loss their job or any unfortunate tragedy happens, they are unable to pay their credit card debts.

Solutions:

Budgeting
A prevention of incurred huge debt is budgeting, people should always make a clear budget and stick on it, such as monthly bills, food, clothes, entertainment and miscellaneous expenses. Make a budget can helps to prevent from overspending and fall under deeper debt load.

Deal with Creditors
Besides budgeting, we should communicate with creditors instantly when having trouble to pay off our debts to see whether they could give a revised payment arrangement. Running away from debts is not a responsible action and not a good solution. It the money collection from creditors is not fair, we may refer to Fair Debt Collection Practices Act to get solutions.

Self control and discipline
The best way to avoid huge debts is to have a direct set up, which we can settle the spending in full amount for each month and use in emergencies. We should spend on what we need rather than what we want, and do not overspend. The main prevention is to spend less in order to stay with well financial situation.



Referencing:
http://www.mmail.com.my/content/credit-card-debt-and-you-many-unaware-effects-bankruptcy
http://ecommercesite.wordpress.com/2008/06/25/credit-card-debts-causes-and-prevention/
http://www.3debtconsolidation.com/top10-causes.html