Electronic Currency

Posted by quatre-Ecomz Tuesday, July 7, 2009 comments (0)

Money used in physical marketplace is in physical substance, such as coins, bank notes, cheques and other trading form of currencies; however, electronic currency is also a newly introduced form of payment method.


Electronic Currency

Electronic Currency, also known as several names such as e-money, electronic cash, digital money, digital cash and many other names, are money that is exchanged electronically only. It is a complete computerized monetary system that is proposing to replace the present paper currency system. It is believed that the initial plan of the launching of the system is to use as a substitute for credit or debit card system.


Usage of Electronic Currency

Example of electronic currency system could be seen in many developing countries.


For example would be the most successful Octopus Card in Hong Kong. It could be used in transits payment and also convenience shops. The store value card has grown into a widely used electronic cash system.

Another example would be from our neighbor country, Singapore. EZ-Link card is the contactless stored value card in the country which currently used by public transport commuters in the country. Recently, bank had upgrades their ATM machines to allow store valued card top up procedure to be done more conveniently.

While in Malaysia, Touch ‘n’ Go is a very good example of electronic currency. It could be used for some public transport, convenience shops like the 7-11. Some parking facilities used this system to eased users parking payment method too.


Impact

Economic impact when Electronic Currency system is exclusively implemented as a replacement to paper currency system would be noticeable. Some of it would be, saving cost in most of the procedure of producing paper currency. Printing and minting costs of paper currency would be saved. Moreover, it will be eco-friendly too as less papers are used for printing of paper currency. Thus, it helps saving high quality of wood and vast jungle areas.


Real wealth could be created as standard of living of the people will be increased. Transactions could also be done at any decimals of currency and the processing period would be faster and effectively done. But, of course, banks would have to play an important role in this system implementation if electronic currency is to replace paper currency.



However, in my opinion, although this system is an effective control over cyber crimes, theft relating to money transfer systems, stricter security and pre-cautions method would have to be implemented together with this system. This is a result of human knowledge changed as things around them evolved. Thieves will maybe think of another way to succeed in their fraud and theft activity.

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A review on an e-tailing post from My E-Commerce blog

Posted by quatre-Ecomz Monday, July 6, 2009 comments (0)

Of all the e-tailing topics on My E-commerce blog, the one interested me the most is a post of Selling fish online in Malaysia.

This post is telling us about 2007 trend of bidding fish via e-mail. The action seems to be initiated by Fishermen in Tanjung Dawai. By selling their fish up to worldwide Internet, they are literally having an international business. People from all over the world who are interested in buying their fish may register their name and be given code number as an ID to auction the fishes bid.

Auction is open everyday from 3 pm to 7 pm Malaysian time. The fish can be sent anywhere as long as the buyer bears the transportation costs and also 5% surcharge to Tanjung Dawai Fishermen Association. During the bidding time, the fishermen of Tanjung Dawai will gather at the auction hall and watching three 29-inch televisions which show the latest bidding list from buyers. When there’s an agreement, the bidder will be e-mailed for further transaction.

As I read the mentioned system, I can’t help but questioning about how it works. There seems to be several flaws on this online bidding system. It was stated that buyers may put their bid and email it to pnktdawai@yahoo.com and the bid will be shown on TV at fishermen auction hall. Tanjung Dawai Fishermen Association doesn’t seem to have a website yet. It is unknown how the bidding fishes are exhibited to the worldwide buyers. That the buyers might buy Tanjung Dawai fishes without confirming the quality of the fishes first. And it is also not explained how buyers monitor updates on their bidding item price, so that they can bid even more when desired. It is also a challenge to advertise the system to new potential buyers out there when all the association are not able to post their email address and phone number on a website, when they don’t have a website.

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Credit Card debts: Cause and Prevention

Posted by quatre-Ecomz Sunday, July 5, 2009 comments (0)

Credit card the solution of shopping, it makes anyone who holds the card ease of purchasing any items in an instant. All customer have to do is take out the card, let the cashier slash it on the machine, sign, done. You can also use its serial number to shop on any of e-commerce sites on internet. But beware, there is never free of charge on having all the comfort on your side, moreover, if you’re using someone else money for that comfort.


So what is the danger of using credit card carelessly? First, we will briefly review of how credit card works. Credit card is a cash advance tool which let consumers to revolve their balance, at the cost of having interest charged. When a purchase is made, the cardholder will have to sign a receipt or entering personal identification number (PIN) to confirm the purchase. Once verified, purchase will be made and you’ll be put on debt to the bank or financial institution which issued the card, with interest. From year 2005 to May 2009, 1774 out of 3548 people declared bankrupt for credit card debt are under 30 years old, which is roughly 50%.

So, here are several causes of credit card debts:

1. Feeling of shopping for free
Unlike shopping with stack of cash in hand, which will make you feel guilty to hand those out at cashier, with credit card, all you need to know is how to slash the card and enjoy

2. Poor money management
Many of cards holder, doesn’t really realize the process behind paying with credit card. They don’t know where the money comes from and where their money is going, how much taxes and interest behind the payment, if there’s any administration fee for the credit card, and other things that might put them on debt. Slowly, but stacking high to turn customer’s business to bankruptcy.

3. Pay it forward
It is one of the most dangerous risks of using credit card. While you don’t have enough cash in saving, but you pay for something, the interest will keep increasing once you fail to pay back the debt in time, more and more as time goes by.

4. Urgent need of money
There’s no think twice of using credit card or getting any money you could use to pay for emergency issues such as medical expenses. In condition where a beloved family member in danger of life, you might used up big amount of credit card money without second consideration which leads cardholder to credit card debts.

5. Gambling
Another popular use of credit card which leads to debt is gambling. There is a smart method of buying gambling money using credit card. As addicting as the game is, without sufficient capital for it, credit card debt will haunt you severely more than the feeling of losing from it.


Even though it is listed of many scary causes of using credit card which leads to debt and bankruptcy; it is actually a very convenient and useful tool of having business transaction when the cardholder is being more careful and smart. There are ways to hold your credit card and step up the ladder of success.

1. Money management
The most essential of problem solving is started from one own self. There’s no blame to credit card issuer or credit card merchant when a credit card holder is the one to lead himself to debts. Plan your saving ahead, calculate your income and taxes, create budget of monthly expenses and extra expenses, and always save for emergency money.

2. Knowledge on credit card system
Study at least on what you have to spend for the credit card service. If there’s an annual fee, how high is the administration fee, cash advance fee, late payment fee, and any other finance charge. Keep them in mind before choosing a suitable credit card issuer and every time you use the credit card service.

3. Contacting and dealing with creditor
Communication is the way of peace and understanding. Address any credit card problems and wonders to creditor and ask for help whenever needed. There’s sometime a special finance solution for customer to pay off another debts or other needs. You might consult about fair debt collection practice act and propose modified payment plan.

4. Set a proper credit limit
Most of credit card can be put on usage limit to prevent cardholder from spending too much in a short time. Put credit card outcome limit as already stated on budget you planned.

5. Consider of using any alternative money solution
For example emergency and medical expenses might be better to be put on insurance for financial safety.

Take your time, be wise and think twice. By applying smart credit card solutions, your lifestyle and business may improve significantly. Spend to gain, not spend to lose.

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The application of pre-paid cash card for consumers

Posted by quatre-Ecomz comments (0)


A prepaid cash card is similar to debit or credit card because it enable us to make purchases without cash or checks. The different between prepaid card and credit card is prepaid card no risk of running into debt as it has no credit or overdraft facility. Besides that, prepaid card cannot connected to our bank account like debit card.

We shall be give a Pin number when we purchase a card, and once money has been loaded, it can be spent in the same feature as a debit or credit card for online or telephone purchases, as well as cash withdrawals from ATMs. Money can be credited onto a prepaid card by cash at a bank, Post Office or via a bank transfer.

A prepaid card has a zero balance until money is added to it. While we make a purchase with a prepaid card, the sum is deducted from the balance on the card. When the balance achieves zero, the card is empty and it cannot be used again unless it is a reloadable card which we can add funds and continue using it. Many employers and government agencies employ prepaid cards instead of checks to deliver wages, child support, unemployment and other benefits. Some prepaid cards can have money reloaded on to them so they can continue to be used. On the other hand, prepaid cards such as gift card can be discarded once all of the funds are used up.

There are various types of prepaid cards which available for us. The two major types of prepaid cards are open loop and closed loop cards. Closed loop card is merchant-specific, used for transactions exclusively at a specific merchant's sites. An open loop card is related with and bears the logo of an electronic payment network such as Visa. Open loop card is honored wherever these networks are accepted.

In addition, reloadable prepaid card is one that lets us add funds after our initial purchase, including teen card, travel card and payroll card are reloadable. Teen card allows parents teach teens’ financial responsibility while managing their spending with teen.


Furthermore, travel card is an alternative to cash and traveler's checks when traveling. Some cards provide lost luggage reimbursement, emergency card replacement and zero liability for lost or stolen cards.



While, payroll card is an alternative to traditional payroll methods in which employees’ wages are deposited directly to their card.


On the other hand, gift card is a non-reloadable prepaid card that can be given as gifts and spent until the balance is zero.
Prepaid cash cards offer many advantages for us. Firstly, there are no credit checks for the card, so we can get a card without worrying about our credit history. In addition, prepaid cards are an ideal way to budget for ourselves. Like a credit card, we can get a full breakdown of spending on the card so we can see what has been purchased, from where and when. With a prepaid card, there is no opportunity of spending too much as we are restricted to the amount we put on our card.

Nowadays, prepaid cash card is recommended for consumer because it is a very convenience tool. It is very useful because it offers several features for us such as purchase products and services. By using it, consumers no need to bring much money and checks when processing a transaction.


Useful links

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

Posted by quatre-Ecomz Saturday, July 4, 2009 comments (0)

As technology are being more advance, there is definitely market opportunity for mobile payment system (MPS) in Malaysia as statistic shows that more than 21 millions of Malaysian own a mobile device.


Mobile payment is a new alternative payment system that provides opportune way for consumers to make payment via mobile device. This payment system enables consumers to receive and send money via their mobile device which totally overcome the limitations and bottlenecks created by cash, cheque and credit cards. By just registering yourself at a specific website, consumer are allowed to make payment to goods and services at anywhere and anytime without being physically present at the store by just entering a few digits of security PIN (Personal Identification Number) via SMS (Short Messaging Service).


MPS in Malaysia started since February 2005 by Mobile Money International Sdn Bhd of Kuok group and Mr. Lee Eng Sia. Mobile Money (MM) has provided a convenient and secure Mobile Payment and Mobile Commerce platform for Malaysian since then. As year passed by, there are more options of mobile payment system in Malaysia such as Digi, Maxis, Hotlink, Celcom, Visa Wave Payment and Maybank. For instant, Maxis M-Money allows consumer to top-up their prepaid credit, purchase cinema tickets and recently, Maxis had a joint-venture project with Lelong.com where all successful bidding payment must be paid by M-Money only. In addition, Maxis also began international remittance services but this only with Globe subscriber in Philippines. By using this Maxis remittance service, consumer can save at least 35% of the charges which other bank usually would charge.


By using MPS, it would save time and cost as consumer does not need to spend hours of queuing to settle their bills and this would definitely benefits our hectic daily routine. Furthermore, MPS assures safety of consumers’ data as this payment system is strongly secured by PIN to provide greater security. Through all this benefits, it leads to higher customer’s satisfaction and these causes an increasing trend of using MPS in Malaysia.


However, not many Malaysian are adopting this convenient payment method as they are not familiar with the system therefore, government should work hand-in-hand with private sector to educate Malaysian about MPS, its functions and benefits. Besides that, should provide more security collaborate solution of mobile payment for the consumers so that mobile users will more confident and satisfaction when using mobile payment as merchants take online order without the need for online shoppers to disclose their credit card information. Last but not least, maintaining existing customer loyalty is very important as it can help the company to build up a good reputation by providing good customer service.

Related useful link:

by, melsiew

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