Electronic currency

Electronic money (also known as e-money, electronic cash, electronic currency, digital money, digital cash or digital currency) refers to money which is exchanged only electronically. Typically, this involves use of computer network, the internet and digital stored value systems. On the other hand,electronic currency includes electronic fund transfer,direct deposit,paystone technology, pay loadz, big pass, first gate’s click and buy, pepper point and so on.

Let us look at a few an examples of electronic currency

Electronic Funds Transfer is an electronic payment method that you use to pay your tax liabilities. Beside that, it is a safe and efficient process for making tax payments. All transactions are governed by strict, nationally established security procedures and occur between financial institutions only at your request.

EFT payments allows you to pay your taxes automatically from your bank account and simplifies the payment of taxes. Beside that, it also saves you time and money on postage and mailing checks and ensures timely tax payments, so consumer need not worry anymore.

Related Electronic Funds Transfer links:
Federation of Tax Administrators (FTA)

National Automated Clearinghouse Association (NACHA)

Electronic Data Interchange (EDI)

TEXNET

Nowadays, consumers are convenient to use online payment on the internet. No sign up fee, no monthly fee, no fee to buy online and easy to load funds from the comfort of your own home.On the other hand,no fraudulent credit card charge backs and you control your refund policy and easy cash out process and so on.

Paystone provides secure, quick online and is an inexpensive online payment method without the risk of charge backs from fraudulent credit card use.Paystone can efficiently handle small financial transactions (micropayments) as low as $0.25. The ability to process micropayments opens a whole new world for entrepreneurs of all sizes.Paystone also provides an email money transfer option.Beside that,a Paystone account holder can send funds to the email address of anyone in many countries around the world.


On the other hand,Pay loadz provide a service to sell download able items such as software, eBooks, music, movies, digital art, manuals, articles, certificates, forms, files, and anything else that can be downloaded.
It will automated delivery of your digital goods immediately after payment.Consumer can get it easily because it sells anywhere online, your own site, our Store, eBay and more.

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

Mobile payment is a rapidly-adopting alternative payment method, especially in Asia and Europe. Instead of paying with cash, cheques or credit cards, a consumer can use a mobile phone to pay for wide range of services and digital or hard goods such as music, ringtones, online games, transportation fare, books and others.There are four primary models for mobile payments:

1. Premium SMS based transactional payments: This is where the consumer sends a payment request via an SMS text message to a shortcode and extra premium will be charged against the phone bill.
   
2. Direct Mobile Billing: This is where the consumer uses mobile billing option to check at an e-commerce site such as an online gaming site to make a payment. After two-factor authentication, the consumer's mobile account is charged for the purchase.
3. Mobile web payments (WAP) :This is where the consumer uses web pages displayed or additional application had been downloaded and installed on his mobile phone to make a payment. It uses WAP (Wireless Application Protocol) as underlying technology.
   
4. Contactless NFC (Near Field Communication): It is used mostly in paying for purchases made in physical stores or transportation services. A consumer uses a special mobile phone equipped with a smartcard near a phone reader module.

Malaysia first mobile payment system is called TeleMoney -the first mobile payment service via multi-channel access for Internet and wireless transactions. Consumer can enjoy a secure and convenient way to conduct mobile commerce using a GSM cellular phone. All one needs is a GSM phone and a TeleMoney personal identification number, connecting it to a credit card, debit card, stored valued card, bank account or even the phone account to make a e-payment. Celcom subscribers signing up for TeleMoney can use the telco's micro-bill mode of payment which allows them to charge transactions below RM50 (US$13.16) to their phone bill.

Cash payments in Malaysia still account for a large portion of the number of transactions in the economy. The increased use of cards is an international trend and is expected to gain significance in Malaysia. Credit cards, ATM cards, debit cards including the e-purse application embedded in the MyKad are among the card payments possibilities in Malaysia. Giro transfers, other credit transfers and direct debit are also gaining significance by both individuals and businesses. Finally, Internet banking has also begun to experience stronger growth. There are several merchants of mobile payments such as Maybank, BNM, and some more.

MM wallet is one of mobile payment systems in Malaysia. It is a PIN-based Mobile Payment Solution designed by Mobile Money International Sdn Bhd. It unlocks the function of the mobile phone to make payments, allowing registered users to pay for goods and services at anytime, anywhere by 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 products online and pay the merchant using his mobile phone without physically present at the store.

Mobile Money will encourage more consumers to shop online. This will definitely be a great boom to the e-commerce industry in Malaysia. It will surely encourage more merchants to adopt online selling as this extra online sales channel can complement perfectly with their offline sales channel. This can help the merchants to sell more their goods and services. For exmaple: the 1'st shopping cart software provider who has integrated Mobile Money as a payment method in webShaper e-commerce software. This feature allows merchants to accept payment via Mobile Money and process the payment in real time within clicks.

In order to pay using Mobile Money, a shopperor consumer must have either a savings, current or credit card account with the participating banks. It functions like a Credit Card if a shopper applies for a "Pay by Mobile Phone" credit card account e.g. Hong Leong Mobile Credit Card. The shopper will be billed by the bank accordingly by month's end. In addition, it functions as a Debit Card if it is tied to shopper's savings or current account. The amount will be deducted instantly from the account upon successful transaction.

Related links: benefits Mobile Money has to offer to merchant

how Mobile Money works and interact with our online storefront solution

The Application of Pre-paid Cash Card for Consumers

Prepaid cash card, a card which needs the consumers previously deposited into a secure account and using the card until the funds are depleted or additional funds are deposited, so that the spending can be limited. The consumers can make any purchases by the card at a particular merchant and use it at any store that accepts major credit cards.

From time to time, the strategy of prepaid cash card widely recognized. Percentage of people using the prepaid cash card is increasing slightly while the poor credit is decreasing continuously in this few years.

First minded for prepaid cash card, there is not much different with the credit card. However, the major differences in using the credit card is the consumers will spend uncontrollable as they can pay the debts after make the transactions which similar like spend money in advance. There are a lot of cases those consumers unable to pay the debts when meet the due date, then the amounts owing plus the penalty, consumers choose to escape from their liabilities.

Benefits being a consumer that having a prepaid cash card
Spending under control
It is an easier way to track spending and with the ability to limit the amount for spend since it is depending on the amount in the account. The account activity can be monitored online to help keep within a budget. The balance can be checked or loaded with additional funds online or over the phone.

Secure way
Safety can be ensured if comparing with carry large amount of hand cash especially when want go for a travelling. There must have the security of sign for every purchase, so difficult for a thief to use your card. If the card is ever lost or stolen, just cancel it with a simple phone call. Consumer can replace it by apply again but the cash will be lost forever if stolen.

Ubiguity
It can be used anywhere at any time. As a conclusion, it provides convenient to the consumers all the time. 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. Nevertheless, it can be used to withdraw cash from the ATM.

No extra charges
It provides convenience of using a card to make payments without using credit or incurring interest charges. Consumers no need to worry about extra charges over their card without their knowing since the pre-loaded sum of money is the maximum amount that can be charged to the card.

Prizes and rewards
Competition is very high nowadays and caused the banks offered all sorts of attractive prizes and rewards in order to attract more consumers to apply a prepaid cash card. By an example, the launch of point-collection system as consumers spend more and more points can they collect, better chance they stand on winning prizes.

The prepaid cash cards offered by several financial institutions

Maybank Visa

Ambank NexG

Tune Money Sdn Bhd

Public Bank

Different banks have offered different offers, so that select the pre-paid card that suits you, and apply online.

Related links:

http://www.startecredit.com/creditpages/prepaid-credit-cards-applications-prerpaid-reloadable-credit-cards.htm

http://www.streetdirectory.com/travel_guide/143565/credit_cards/prepaid_debit_card_offers_are_they_right_for_you.html
http://www.moneysupermarket.com/cards/prepaid-cards-guide1.asp

Credit Card Debts - Causes & Prevention

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Credit card is part of a system of payments named after the small plastic card issued to users of the system. It is a card entitling its holder to buy goods and services based on the holders promise to pay for these goods and services. The issuer of the card grants a line of credit to the consumer (or the user) from which the user can borrow money for payment to a merchant or as a cash advance to the user.
Recently, we live in a world where debt is not only acceptable, it is the norm. Almost everyone we meet has debt of some kind. So, in a society that views debt as a way of life, how can we control our debt instead of allowing it to control us? Here are some steps to help you with credit card debts prevention:
· Know Your Interest Rate - If you’re going to use a credit card, regardless if you pay the balance in full each month, you need to know the interest rate. In addition, check the rate on your monthly statements because credit card issuers can raise your rates for little or no apparent reason and with little warning.

· Pay on Time - Due to the universal default clause in credit cards’ terms and conditions, credit card companies can raise your interest rate if you are late paying any creditor or even your utility company.
· Limit the Plastic in Your Wallet - Having a wallet full of plastic can make it tough to keep track of how much you owe on each , which can spell trouble when it is time to pay your statements as every credit card comes with its own set of terms and conditions·

Early Education - The best method for prevention is teaching our youngest generation all about money before they even qualify for a credit card. In addition, advertisers market more to younger and younger children, so it’s imperative to teach them very early about the lure of money and how to manage finances.

Below are some causes of credit cards debts :
· Poor Money Management - Not having a monthly spending plan and not keeping track of the monthly bills makes people unaware of where their money is going. They might be spending hundreds of dollars every month towards items that are useless and have no value in their life. While their money is going towards purchasing useless items, they might also be charging their necessary purchases on credit card, forcing them to pay interest on these purchases every month.
· Saving too little or not at all - The simplest way to avoid unwanted debt is to prepare for unexpected expenditures by saving three to six months of living expenses. With a savings cushion in place, a job layoff, illness or divorce will not cause immediate financial strain and increase debt.
· Financial illiteracy - Many people don't understand how money works and grows, how to save and invest for a rainy day, or even why they should balance their checkbook. The schools don't teach it or parents may not have sat their children down and explained it. It doesn't matter. We are responsible for our life and our money anyway.
· Reduced income/same expenses - Too often we delay bringing expenses in line with a reduction in income for a host of good reasons and let debt fill the gap. The sooner you adjust to your new reality, whether it be temporary or permanent, the better off you'll be.

Related links:
http://www.bankrate.com/brm/news/debt/debt_manage_2004/top-10-causes.asp
http://www.3debtconsolidation.com/top10-causes.html
http://www.cardratings.com/howtoavoidcreditcarddebt.html
http://www.itsahabit.com/
http://www.creditcards.com/credit-card-news/debt-prevention-tips-1267.php