E-Commerce - Exploration of Blogging 09'

Sunday, July 5, 2009

Application of prepaid cash card

What are the Prepaid Cash Cards ???
Prepaid cash cards are the cards, which mostly made up from plastics that can be used to make payment for goods and services and even to withdraw money. However, before using it, the user needs to load the card with a sum of money. Therefore, a prepaid cash card allows the consumers to purchase something even when they don’t have the cash to pay for it. It has benefited the consumers in their everyday life.

Prepaid Cash Cards – the advantages …
Nowadays so many people tend or already have their own prepaid cash cards, why is it so? The advantages are vary as below :

1. Remain in control of one’s money, keep track all of activity online or by phone – People can limit their spending and plan how much they want to spend in advance with their prepaid cash card. Thus, spending is controlled by how much one has in the account. Besides that, prepaid cash cards give consumers a better alternative in keeping record of your spending.

2. Prepaid cash cards are always convenient all the time. It can be used at just anywhere anytime. Consumers can use it at their groceries shopping, petrol filling, utilities payment, movie tickets, airline tickets, download songs online, mobile phone bill, fast food or restaurant and even online shopping or any online payment! Or, they can even use it to withdraw cash from the ATM. Besides that, having a prepaid cash card is certainly quick and easy. Transaction can be made just within a minute. All you have to do is hand swap your card on the counter, sign on the receipt and collect your card and a copy of the receipt.
3. Eliminate check cashing fees and enjoy immediate access to your money through direct deposit of your pay check, government payment or other income sources, no bank account needed.

4. Avoid bounced check fees; always know exactly how much money you have to spend. The prepaid card can help protect you from over spending.
5. Having a prepaid cash card is surely safer than carrying cash. Prepaid cash card protect consumers from unauthorized transactions even when the card is stolen or lost. Plus, these cards can also be replaced once it is stolen or lost. Unlike cash, once it’s lost, it’s gone forever.
6. Free balance alerts –Some card providers will inform users on how much cash they have.

Examples of Prepaid Cash Card all around the world
Obopay
It is one of the prepaid cash cards that are similar as debit cards because both are using existing money rather than borrowing. However, personal identification number has to be keyed in for the transaction to be authorized if using prepaid cash cards. It is considered as most secure and safe financial transaction card because can it likes a portable access point to checking account. Nevertheless, it could not use for online shopping and in “quick pay” terminals that have a card reader but no keypad to enter a personal identification number.

Pre-paid Vista Cash Card is issued by Four Oaks Bank & Trust Company that given the opportunity for consumers with poor credit record and young children by not spending more than the balance on the card. Visa permits travelers access to money at automated teller machines in 65 countries and book the train tickets by offering prepaid cash card such as Metro Card in New York City.

Touch ‘n Go (TnG) smart card is used by Malaysian for electronic payment system to toll expressway and highway. It is expanding its business to retail purchase by starting with fast food industry that enables consumers to buy dough nut, burger or fast-food from 21 outlets such as Burger King, 7-Eleven, Dunkin’ Donut. It is imitating the success of Hong Kong’s Octopus Card by setting 5 to 10% of the card holders for retail purchase as current target of the company.

Octopus Card was launched in Hong Kong on year 1997, September. It is a rechargeable contactless stored value smart card to transfer electronic payments in online in offline system. It is widely used in payment system for transportation, supermarkets, fast food restaurant, car parks and other pint of sale application such as service station s and vending machines that have achieved good outcomes.

In a nutshell, prepaid cash card is indeed a good invention that makes life easier, it contributed a lot in eliminating debt risk with no chance to spend too much as the balance is limited to the amount reloaded, and the convenience that it provide is indeed great.

Friday, July 3, 2009

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

Touch n Go card is well known as a pre-load cash card which is mainly use for transportation and toll collection purpose. Recently, Touch n Go Sdn Bhd (TNGSB) has been introduced in both KL International Airport (KLIA) and Low-Cost Carrier Terminal (LCCT) since February 2008.

Touch n Go card, famous for its usage as a pre-load cash card used mainly for transportation and toll collection, is now expanding their applications and services towards the retail purchase, starting with particularly the fast-food industry.
One of the application offered is enable the user to buy burger, doughnut or fast food from 21 outlets involved in a pilot scheme for Touch n Go card. Among the participating outlets are A&W, Burger King, Dunkin' Donut, 7-eleven, Carrefour hypermarkets, Caltex convenience stores and Cineleisure. The company is targeting 5-10% of the carholders to use the card for retail purchase, emulating the success of the Hong Kong's Octopus card (20% usage for retail purchase.)

In my opinion, TNG card has been move forward to fast food industry. However, this facility only available in Klang Valley, which means most of people, especially those not around Klang Valley, has no chance to really participate in the usage. This will lead to lower usage in current and also future. I suggest that they should try to speed up in expanding this facility as what they have planned. So this will give benefits to everyone including TNGSB by increasing the usage of TNB card in retail purchase.

Electronic currency

Electronic currency (also known as electronic money, digital money, digital money, digital or digital currency) refers to money or scrip which is exchanged only electrometrically. Typically, this involves use of computer networks, the internet and digital stored value systems. Example of electronic currency such as Electronic Funds Transfer ( EFT) and direct deposit also. It is a collective term for financial cryptography and technologies enabling it.

Digital money is a system of debits and credit, used to exchange value, within another system. Also sometimes the term electronic money is used to refer to the provider itself. A private currency may use gold to provide extra security, such as digital gold currency like e-gold and c-gold. Many systems will sell their electronic currency directly to the end user, such as Paypal and Wedmoney.

Advantages

Banks offer many services to the customer that transfer funds, contribute to their retirement plans and offer a variety of other services without having to handle physical cash or checks. Customers do not have to wait in lines and this provides a lower-hassle environment.

Debit cards and online bill payments allow immediate transfer of funds from an individual’s personal account to a business’s account without any actual paper transfer of money. This offers a great convenience to many people and businesses alike.

Disadvantages

Although many benefit to electronic currency, there are also many disadvantages. Three include fraud, failure of technology, possible tracking of individuals and loss of human interaction.

Fraud over digital cash has been a pressing issue in recent years. Hacking into bank account and illegal retrieval of banking records has led to a widespread invasion of privacy and has promoted identity theft.

Future evolution

Furthering network evolution in terms of digital cash development, a company names Digi-Cash is at the focus of creating an e-cash system that would allow issuers to sell electronic coins at some value. When they are purchased they come under someone’s own name and are stored on his computer or under his online identity. At all times, the e-cash is linked to the e-cash company and all transactions go through it, so the e-cash company secures anything that is purchased. Only the company knows your information and will properly direct purchases to your location.

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

Mobile payment is also referred to as mobile wed payment or WAP billing and it is the collection of money from a consumer via a mobile device.

One of the mobile payment in Malaysia, Mobile Money, is guided by Mobile Money International Sdn Bhd. Mobile Money provides any handphone users the convenience to pay anyone, on any time, at anywhere. This system is a PIN-based Mobile Payment solution. It unlocks the power of the mobile phone to make payment, allowing registered users to pay for goods and services at anytime, anywhere using only a mobile phone coupled with a 6-digit security PIN (Personal Identification Number) via SMS (Short Messaging Service). This gives the freedom to shoppers to buy product online and pay the merchant using his/her mobile phone without being physically present at the store.

There is a great potential for mobile payment services in Malaysia since it is changing the behavior of users and increasing the demand over time. Supportive actions and collaborations with banks and handset vendor will helps in speed up this demand. Beside, mobile money might replace cash or face to face transaction since it is so convenience and safe to deal with. Furthermore, people now a day become more and busier, mobile payment will helps them to save time and sometime also the transportation fee.

A consumer adoption is necessary for the success of mobile payment, yet consumer may be not familiar with this payment technology. Mobile money has adopting three strategies to increase consumer adoption in this system:

i) Secure Mobile money provides highest security to protect their user while doing payment.
ii) They conform to best practices in industry, participating bank and regulated relevant authorities.
iii) Rewarding Mobile Money rewarded user while shopping or purchasing using Mobile Money System

http://www.mobile-money.com
http://www.neowave.com.my/mobilemoney_overview.asp

Wednesday, July 1, 2009

Credit Card debts: Causes and Prevention

The more people charge to their credit cards, the greater the profits made by the credit card companies. The credit card company receives a percentage of each transaction as a merchant fee. But the big money comes from the credit card users: the more you spend using your credit cards the higher the probability you will borrow money from the credit card company at steep interest rates, get hit with fees for exceeding your credit limit, and incur larger penalties for late payments.

The psychology of credit cards themselves makes it easy for you to spend more money than you should. If you're going to use credit cards wisely and profitably, this is crucial to understand.

When you charge something to a plastic credit card, it doesn't feel as though you're really spending money. Why not? Because when you spend cash, you tend to withdaw an amount from your checking account to cover multiple purchases over a certain time period - say a few days or a week. When you spend that cash, you're aware that you are using up that informal budget. If you use the cash faster than you had planned, you're immediately aware that you might be overspending.

Reasons why consumer overspend

Poor financial management-(spends first, manage later)

Consumer is facing lack of knowledge and understanding about the nature and forms of money, how it is used and the consequences of consumer decisions in manage their major portion of income will spend on important stuff such as basic needs e.g. food, shelter and clothes rather than unimportant stuff such as desire wants e.g. luxury car, cigarettes and alcoholic beverages.

Lack of patience-(want own it now)

Some people want instant gratification. They see something and they want it immediately, regardless of whether they have the money to afford it. They lack the patience to wait even a short amount of time, and therefore they spend even when they don't have the money available to cover the purchase.

Sense of power-(buy anything)

Spending money actually makes many people feel more powerful. Whether it is handing over a wad of cash or pulling out a gold card to charge money, the simple act of spending a large amount of money gives them a rush of false power.

How to control Credit Card debt

Understand how to keep personal financial records.

For example, know that records of income, expenses are necessary for income tax purposes; understand the consequences of poor financial management.

Evaluate the relationship between spending and using credit responsibly.

For example, recognize impulse buying behavior might limit future choices; factors such as debt levels and essential expenses should be considered when deciding a reasonable credit limit.

Make sophisticated choices when comparative shopping.

For example, develop personal spending criteria based on income and needs, access information from a variety of sources (including the internet), about goods and services and apply criteria.

Teens Must Be Taught How Money and Credit Cards Works