Electronic Currency

Electronic Currency

Also known as e-cash, e-money, electronic cash, digital money, digital cash or digital currency. An online payment transaction method using a card, comprising the steps of: preparing a prepaid card meant to be purchased by a user; the prepaid card containing an activation code and at least one secret code; activating the prepaid card on the part of the user by transmitting the at least one secret code, together with a password, to an operator of the prepaid card; when the user makes a purchase online, receiving, from a retailer from which the user wishes to make the purchase, a unique reference code which identifies the retailer, and sending the reference code to the card operator together with the secret code and the password; the card operator enabling the purchase at the retailer.

Paypal and Webmoney, which the systems will sell their electronic currency directly to the end user. However, some of the system sell only through third party digital currency exch angers, such as Liberty Reserve.


E-commerce credit card processing

The term 'e-commerce credit card processing' simply put, is the process of e-commerce websites processing credit and debit card payments online and in real-time. This is essentially the same process as online credit card processing or payment processing which is also contained within this glossary.

It is best to choose a payment company who specialize in providing e-commerce payment solutions as they will have extensive knowledge and
expertise in this area. Nochex have been providing e-commerce credit card processing solutions for over five years, are integrated within many of the the most popular shopping carts and can have your e-commerce website taking payments within days.

Electronic payment

The term 'electronic payment' is a collective phrase for the many different kinds of electronic payment methods available (also meaning online payment), and the processing of transactions and their application within online merchants and e-commerce websites.

It is essential for all online businesses to be able to accept and process electronic payments in a fast and secure way. Businesses can gain a significant advantage over their competitors by providing an instant electronic payment service as it lets customers pay by their preferred way of credit or debit card.

Internet payment service

The term 'internet payment service’, refers to the range of services available that enable internet merchants to accept and process credit and debit card payments. Whilst being similar to a merchant service, an internet payment service does not necessarily require a separate merchant account and payment gateway.

It is beneficial to find an internet payment service provider who can look after all of your payment needs with just one single account. This can save you a lot of time, effort and money which is vital to new and small internet businesses.

The term 'transaction processing' within an e-commerce environment, is the process of an online shop or e-commerce website accepting and processing a customer’s credit or debit card payment online and in real-time, in return for goods or services.

During the online transaction process, the Merchants payment systems will automatically connect to the customer’s Bank or Credit Card Company, carry out security, fraud and validity checks and subsequently authorize and take the payment.

The application of pre-paid cash card for consumers

Prepaid cash cards

Prepaid cash cards are a plastic card and given a PIN number when you buy the prepaid cash card. It can use to purchase products and services physically, online, telephone purchases or withdraw cash from ATMs. It is designed to be used as an alternative and convenience.

However, card holders can only spend on the money that has been credited. So, the card holders have to reload some money onto a prepaid cash card at banks, post offices or via bank transfer. In this case, card holders will not run into debts and no interests will be charged. This is because you are not borrowing money from banks or other financial instituions. This is the beauty of prepaid cash card.

Application of pre-paid cash card for consumers:-

• Convenient- The users can shop anywhere as long as the card is accepted by the retailers. Besides, users can use to pay fuel at the patrol station, purchase by phone, and shop on the Internet.

• No debt risk – There is a limited amount on our card that the users have no chance or unable to overspend by using prepaid cash card. It is because users are the one who load the particular amount onto the prepaid cash card.

• Controllable – It is an ideal way to control the users on purchasing. It helps the users in managing the money and eliminate the habits of overspending. Thus, users will always create a budget, make a list of items that are necessary to be purchased and able to save up some money for emergency use.

• Withdraw cash at ATMs - The cash can be withdrawn any time. It enables the users to pay by cash when making payment. This is because some places do not accept prepaid cash card to make payment. Examples places that require cash are eating at hawkers' stalls, markets, mart and etc.

• Money transfer – Some prepaid cash card provides money transfer service via bank wire transfers. Its flexibility is users can send or receive money via bank wire transfers between two cards. It is so convenient and meet the users' needs.
  


• Payment – For an example, Touch n Go. It is widely used in Malaysia and can be used at paying toll of all highways in Malaysia, major public transports in Klang Valley such as Rapid KL and LRT, selected parking sites and theme parks.

• Pay bills – Bills such as rent, utilities, insurance, car payment, and cell phone bills can be paid instantly.

Since prepaid cash card is benefiting and convenience, consumers do not have to worry of carrying so much cash in their pockets and fear of paying debts. Consumers can happily use the cards anytime, anywhere.

References:

1. http://www.moneysupermarket.com/cards/prepaid-cards-guide1.asp
2. http://usa.visa.com/personal/cards/prepaid/index.html
3. http://www.mastercard.com/us/personal/en/aboutourcards/gift_prepaid/
4. http://www.electronic-payments.co.uk/solutions/Splash_plastic_card
5. http://images.search.yahoo.com/search/images?&p=touch+n+go+card&rs=0&fr=sfp&fr2

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

Just finished reading on a post titled, OpenTable.com - Online restaurant reservations in e-Tailing from My E-commerce blog. It is about a restaurant which provides an online booking system to their customers. This system is very convenience for the customers and the most important is free of charge. If you want to cancel the reservation, you can just “one-click” for cancellation. This system also allowed customers to leave important messages to restaurant in his or her reservation.

If this e-commerce business model can be implemented in Malaysia especially for high-end restaurants in Kuala Lumpur, I’m strongly agree because it is really convenience to Malaysians. As you know, during peak seasons or special days like Mothers’ day or Valentine's Day, all the restaurants are full with customers and hardly to find seats. For those special days, you may need to have early booking and it is not 100% confirm that you will get a place. Sometimes, it is due to the mistake done by the reception.

If the online restaurant reservations system is used in the high-end restaurants, it can attract more customers and able to enhance their services. Besides, this system can solve businessmen problems. For an example, you are working in the office and plan to bring family out for dinner, you just have to visit the website and follow few steps to complete the application, then the restaurant will reserve a place for you. Thus, you wouldn’t have to worry and no need to call to the restaurant and wait for the reception to check manually for you whether the seats have reserved. It also can avoid the mistake and seats problem such as you have reserved the seats earlier but the reception said no. It is because manually done, sometimes mistakes may occur. In order to avoid those problems, Malaysia can implement this system. I believe that Malaysians will support as nowadays technology replaced the manual and the system is free of charge. You do not need to waste your time and money to call the restaurant for reservation.

Since people are busy working and rushing with the time, online booking system is suitable to implement in Malaysia and restaurants do not have to worry of losing the customers. If the reservation can be made via online, everything will be easy and attract many people to online booking. This will become a greatl e-commerce business model. It is so convenience and ease to everyone, so I will support this system to be implemented in Malaysia and I believe that it will success in Malaysia.

Mobile payment systems in Malaysia: Its potentials and consumer's adoption strategies

Mobile has been emerged in the beginning to make our life easy and convenience. Mobile payment system has adopted and widely in Malaysia. However, as our world is marching into era of globalization and technology, it is definitely not an eccentric scene to see almost every Malaysian own mobile phone and utilize services provided by a communication company, including mobile payment. Hence to say that mobile payment has bright and vast potential in the market.

Payment can be made via mobile at anytime, anywhere. It is so easy and convenient. This is what everyone is craving for. By using mobile payment, payment is no longer necessarily to be done in offices which involved tedious and troublesome steps. Thus, payers do not have to worry of being stuck in a long queue to wait for their turns, either to make payment or to withdraw cash in banks. It can also solve payers’ fears especially unable to make payment on public holidays due to busy working, forgetful or outstation. In short, all payment procedures can be completed feasibly on their fingertips in short time at anywhere, anytime by using mobile payment.

Mobile payment is very efficient that faulty error can hardly occur. All the steps are executed by programmed computer systems when conducting transactions via mobile. Problems such as errors caused by negligence, recklessness and unawareness by both the creditor and payer can be avoided. All information involved is distinctly and clearly stated in SMS (Short Messaging Service). This can minimizes confusion encountered by users.

Besides, mobile payment does not involve cash or cheque transfer in places that exposed to those with evil/greedy intention. This payment system is all based and working on enhanced secure pins which only known by payers. Payers and creditors can safely and successfully do transaction and make revenue. The example of mobile payment are like mobile banking, mobile wallet, pay-as-you go or contactless card technologies. Recently, Maxis had also invented a mobile payment service, Maxis FastTap.

Here is an illustration of how mobile payment being conducted:

(Images taken from http://www.neowave.com.my/mobilemoney_howitworks.asp)

Consumers' adoption strategies to make payment using mobile:

• Educate consumers about mobile payments system which is convenient and easy to use in their daily life, introduce its functions, ways of using it and explain the advantages and benefits to convince and confidence of using it. (Examples are mobile banking, bill payment, mobile purchase and etc.)

• Approach and visit information booths available at your place to know more information about mobile payment and guidance will be instructed by professionals on how to use mobile payment system effectively and safely. (Example, the company has promoted, launched many ceremonies and set up information booths to reach the customers and channel their benefits to the customers. It is available in many places such as in Midvalley Megamall, Pavillion, Times Square and etc.)

• Do more research on mobile payment systems and understand the systems progression before register and subscribe to mobile payment service through internet.

• Ask and learn from friends, relatives or families whose have experience using mobile to make payment to purchase goods or services without being physically present at the store.

Mobile payment system is suitable to adopt in e-commerce industry which gives customers to shop online and make online payment easily. In cooperation with government, mass media, communication companies that offer this services and consumers, the aim to make mobile payment as their payment habit will become successful.

Credit Card debts: Causes and Prevention

I’m sure everyone out there know what is credit card. Everyone wishes to own a credit card or more in their hand. Basically, a credit card is a way of payment by using a plastic card. It is issued to the customers to make their payment after a credit card application has been made and approved by authorities. Then the issuer will lend out the money to the credit card holder. After that, the customer can start to buy their lovely things at any outlets on credit up to the limit of credit.

Customers can also use credit cards to enjoy credit card online facilities. It is easy to use, faster than actual procedures of cash transactions and convenient. Examples of online websites that provide credit card payment method are Amazon, eBay, AirAsia and etc. In addition, customers can earn points by using the credit cards for exchanging rewards.

Causes of credit card debts:

• Excessive spending: One of the most common causes and it happened to everyone who owned the credit card. Consumers tend to buy everything with credit cards whether it is necessary or unnecessary needs. This is because they do not have to carry so much money in their pocket. Moreover, consumers can buy expensive things immediately such as mp3 player, plasma television, computer, online songs and etc.

• Do not save funds into savings account: Most of the consumers do not save funds into their savings account and this will cause the consumers to use their credit cards whenever they like including emergency expenses. Unexpectedly, consumers are using the credit cards to pay for all the transactions and increase credit card debts.

• Late payment for monthly credit card bills: Another common cause that happened to credit card holders. Some consumers use credit cards as their payment method for every transaction but they may sometimes forget that the items they purchased are on credit. When the credit card bills arrived, they will have problems to pay for the debts. If the credit card holders are unable to pay the debts on time, interest will be charged due to the late payment.

• Pay medical expenses: Unexpected events may happen in our life and unable to predict. Some credit card holders will use their credit cards to pay for medical bills instead of using cash. Medical costs is high and will increase credit card debts.

• Too much relying on credit cards : It is ease to use and carry credit cards anywhere, anytime. Unfortunately, some consumers think that they have much money to shop by using their credit cards and often using it. It will make the consumers to spend more than their monthly income. This will lead to credit card debts and slowly become a habit to use credit card to make payment.

• Loss of employment: Thousands of people will become unemployed each day and will have difficulty in managing money because unable to find a secure job, especially credit card holders are in credit card debts. They will have difficulties to pay for the debts as they need to spend on montly expenses too.
  

Preventions for credit card debts:

• Create a new budget. Determine how much money you would have for a month and what necessary needs that need to purchase. The most important is to cut out the unnecessary expenses.

• Regularly contribute funds into savings account. Even with the little funds you still can put into savings account and slowly you will have much money to pay for the debts or for emergency use.

• Keep a calendar with you whether it is a hard copy or electronic. This is an effective way that can ensure you never late for paying credit card bills each month.

• Make a list of items that are need to buy. Identify unnecessary items and eliminate it. Always remind yourself that money spend cannot more than monthly income. Be a wise consumers and good at money management.

• Do not rely or treat credit cards as extra income. Tend to use cash to pay for the items which are cheap and can be paid by cash.

• Eliminate the habit of using credit cards. Remind yourself that you do not have much money to buy expensive things and it is same as using credit cards.

• Try to communicate with family about financial situations that you are having. Discuss with them to solve the problems. Parents will help to settle the problem and share the feelings with you.

In conclusion, credit cards are convenient and easy to use which are provided in Malaysia. At the same time, consumers have to be smart in money management and plan which payment methods are suitable to use, whether cash or credit cards. Therefore, consumers will not involve in credit card debts.

Referred links:
http://www.creditcardscities.com/
http://www.3debtconsolidation.com/creditcardmistakes.html (provided 2 videos about credit cards)