The application of pre-paid cash card for consumers

Pre-paid cash card is a type of scratch card, where customers need to pay first before purchases. Prepaid values are stored on cash card, the values will be deduct when purchases or other usage. By using prepaid cash card, customers do not have to wait for the bill statement because the money used is preloaded. Pre-paid cash card is a perfect way to keep track of spending to ensure overspend.

Once the money for the card is finish, you can't spend any more until you make another deposit. It has the same principle like debit card linked to a savings or checking account. But, pre-paid cash card doesn’t require credit bank account; therefore it is an option for people with a poor credit history. Pre-paid card works like a bank account. First, customers need to deposit money into the company of that card then he/she can spend that amount of money like traditional debit card. Pre-paid cash card have the ability to reload the balance through automatic deposits from your own bank account.

Pre-paid cash card for Malaysia

The Touch 'n Go smart card are used by Malaysian toll expressway and highway operators as the sole electronic payment system (EPS). The credit card sized smartcard made of plastic with Philips' MIFARE microchip technology embedded in it. Touch 'n Go systems designed to process up to 800 vehicles per hour to ease the queue congestion at toll.
Besides that, Touch 'n Go also can use for public transportation, ticketless parking, retail outlets and admission fees for Bukit Merah Lake Town Resort.

References:

- http://en.wikipedia.org/wiki/Touch_n_go

- http://www.advanceamerica.net/otherservices_cashvantage.php

Prepare By: Chee Seng

Credit Card debts: Causes and Prevention

A credit card is a system of payment named after the small plastic card issued to users of the system. In the case of credit cards, the issuer lends money to the consumer (or the user) to be paid later to the merchant. It is different from a charge card, which requires the balance to be paid in full each month.

Do you know what all of the possible causes of bad credit are? There are many different things that can negatively affect your credit score. Make sure you know all of negative credit marks and how you can avoid them:

1. Late Payment

Late payments are probably the most common bad credit marks you'll find on a credit report. Typically there are different degrees of late payment, for example your score will go down more if you're 90 days late compared to being 30 days late.

2. Bankruptcies

Bankruptcy is usually the last resort for someone who cannot possibly pay back the debt they've accumulated. While it will help you get out debt, it will completely ruin your credit score for a very long time.

3. Poor Money Management

Poor money management is one of the reasons that easy accumulated many credit card debts. The people are no planning how to use their money on spending. Thus, it has lead to a rise in debts by using credit cards.

4. Judgments

A judgment usually occurs when you do not pay a creditor and they are forced to take action through the legal system. If a creditor successfully takes out a judgment against you, you'll likely have your wages garnished until you're paid off.


Keeping control of your spending and having a sound financial plan can help you prevent debt or bankruptcy and achieve peace of mind about your financial future. Here are some ways to prevent such as:

1. Create a Budget

A clear budget that includes all of your monthly bills, food, entertainment and miscellaneous items will prevent you from spending thoughtlessly and buying on impulse.

2. Shred or Tear Up Credit Card Applications

Destroying the application will prevent you from using it and protect you from potential identity thieves.

3. Maintain insurance coverage

Health and home insurance are absolute musts in order to avoid bankruptcy. Unexpected medical bills, flood damage and fire damage can lead to ruin if you aren't properly covered.

4. Pay taxes correctly and on time

Unpaid tax debt that accumulates can cause bankruptcy.


References:
- http://news.savingadvice.com/Debt_prevention_advice_20074316125.html
- http://www.insolvencyhelpline.co.uk/debt_advice/the_causes_of_debt.php
- http://www.credit-land.com/articles/articles_page_68600_1881780_120.php
- http://www.bankrate.com/brm/news/debt/debt_manage_2004/top-10-causes.asp
- http://www.ehow.com/how_2080761_avoid-bankruptcy.html
- http://www.creditf.com/bad-credit-causes.php


Prepared By: Lee Boon Keat

Electronic Currency

Electronic currency also knows as e-money, electronic cash, digital money or digital currency. Electronic currency refers to money or scrip which is exchanged only electronically. Electronic currency is simply its own form of currency that has been developed and utilized on the internet. It’s also known as ‘Internet money”. Which mean the currency used on the internet related field just like email. Normally, this involves use of computer networks, the internet and digital stored value systems. Electronic currency also includes internet-based purchase and sales transactions involving almost anything to be safely conducted at lightning speed. A private currency may use gold to provide extra security, such as digital gold currency.

Electronic currency is precious metal-backed internet currency. Individual open an account to deposits money with an online electronic currency company that then converts the amount into gold bullion. The account holder can transfer ownership of some or all of that gold into someone else's electronic currency account. Ownership can be repeatedly transferred. Electronic currency has been widely used by perpetrators of pyramid scams. Swindlers demand payment in e-currency because, unlike with checks or credits cards, the charges clear instantly and cannot be cancelled. Experts estimate that about half of e-currency transactions are related to scams or online games.

An electronic currency system may be fully backed by gold (like e-gold), non-gold backed, or both gold and non-gold backed. Two major types of electronic currency their backed base. One is backed by precious metal such as e-gold is backed by gold .Another type of electronic currency is backed by hard currency like Pay Pal. Both of them are all called electronic currency.

Pro and Con about different types of Electronic currency

Electronic currency backed by hard currency is widely used in the internet as the medium of internet related commercial actions. That will provide users a quick, simple and safe way for shopping instead of showing their credit card information to merchant who they do not know. How been restricted in some regional area which is defined by the currently they choose to be backed. The major reason is the floating character of exchange rate between the hard currency and the local currency often used by the internet users. Most of the electronic currency companies backed by hard currencies become big giant that is just because the number of this kind of currency user is big enough .For example Pay Pal. But no one will guarantee if Pay Pal can do the same good job in the future hard currency such as RMB in China if Pay Pal does not provide RMB base payment service.

References:

- http://ezinearticles.com/?E-Currency-Exchange:-The-First-Bonanza-of-the-21st-Century?&id=62820
- http://www.adl.org/internet/e_currency.asp
- http://en.wikipedia.org/wiki/Electronic_money
- http://giexc.com/

Prepared by: Koh Kah Wang

Mobile Payment systems in Malaysia: Its potential and consumers' adoption strategies.

What is mobile payment?

A mobile payment system is defined as a method of payment that requires the use of a mobile device to conduct a transaction financially. Mobile payment also referred to as Web billing/mobile web payment. Most importantly, mobile payment system allowed us to conduct initial payment at any place and any time. Mobile payment has improved our living standard in daily life.

The Mobile payments model

Mobile payment can be divided into 2 types, which is refers as SMS based and Wap based.

SMS based – The payment request is sent via SMS with a short code in a form of sms messages. The payment is deducted directly from the prepaid system or added into the oncoming bill. The most popular activity conducted via sms based payment is refers to the purchasing of MMS, ringtones, pictures for mobile phones. It is widely applied in Malaysia and it is well known around the market.

Wap based – is a method which the users use web pages displayed on their mobile devices to make a payment. The advantages of using Wap based payment, it can lead to high customers’ satisfaction and it is ease to use. The examples of wap based payment: Credit card payment, Paypal and etc.

The potential of Mobile payments

Mobile payment systems allowed people to make transaction in anywhere and anytime, it brings convenience to us in daily life. Mobile payment industry can be growth dramatically in future because there are millions of potential users are still in the exploring and learning stage. Teenagers are the potential customers because they are more willing to try new products/services compare to older generation.

Adoption of the consumers

Although mobile payment system is popular around Malaysia, there are a lot of users are still having ambiguities. There are some factors which can become inhibitors if does not implicated nicely. Consumers are not fully adapted to the system due to uncertainty towards the systems. The adoption can be affected by the factors such as: lack of consumer trust, less of user friendly infrastructure, price, maturity of payment solutions, technology standards within the country, user comfort level, networks limitation, compatibility, security, and etc. The cost and the security are the main factors which can affect consumers’ decision. Furthermore, the reliability of the system will affect the adoption rate too.

Overall, mobile payment is a useful tools for us.

References:

- http://www.bibsonomy.org/bibtex/17668e643cc8df8fe1b9e83fbc33d7a76
- http://www.kpmg.co.th/Thought%20Leadership/Info.Comm.Ent/Mobile_payments.pdf

- http://en.wikipedia.org/wiki/Mobile_payment

Prepared by: Teo Muh Chow