The application of pre-paid cash card for consumers

Monday, June 29, 2009

Pre-paid cash cards look like credit and debit cards and they offer the same ability to purchase goods and services. It also designed to be used as a safer alternative as compare to cash. User must reload a credit with a sum of money before them start to using the card. This means there is no risk of running into debt as it has no credit or overdraft facility.

The prepaid cash card can be use in several ways,

1. Get cash-Withdrawing cash from ATM in anywhere and anytime of the day.

2. Transfer money - provide the convenient such as send or receive money via bank. This system is normally use to remittance money to friends and family either in the different of countries

3. Shop anywhere –can buys fuel at any petrol station such as petronas,shell,esso as long as the card using is accepted at different retailers.Thus,it also can be use to purchase good and services on internet such as ebay and amazon
1.Paying bills -can paid any bills immediately such as phone bill, rent, utilities, insurance, car payment, water and electricity

4. The card of travel –Traveler can buy prepaid debit cards denominate the currency in that countries .It can be used as a replacement for travelers’ cash
by using them to pay for goods and services. This is a best way to keep their money save and more secure than carrying large amount of cash

5. Pay for toll – Use card as an example"Touch n Go" ,by just top up the credit ,it can be used at all highways in Malaysia, major public transports in Klang Valley, selected parking sites and theme park .

Reference link

http://www.moneysupermarket.com/c/prepaid-cards/guide/

Credit Card debts: Causes and Prevention

With credit cards easily obtained in nowadays, a number of people burdened by unpaid credit card debts were increasing .That is a major cause of declare bankruptcies because people never consider consequences from their financial situation when using a credit card.

Causes for credit card debts

Less Income, More Expenses
It so happens when the people losing their job but monthly expenses are not cut down in line with the reduction in income. This obviously leads to a rise in debt. They are forced to use their credit cards for their daily spending to maintain their lifestyle

Poor Money Management
People are like to spending hundreds every month towards their daily entertainment life such as smoking, clubbing, and drunk. They do not realize it and unaware of where money is going on. This a a reason why so many people accumulate a lots of debts due to not having a planning for their spending.
Gambling
Gambling has become part of entertainments for many people in life. It is hard to stop when it becomes addictive. Thus, it will surely lead to a financial disaster if borrowing money through credit card. it so happen because most people hope to win back the money when suffer a loss in gambling

No saving culture in life
Due to the developing of e-commerce in internet, people are like using credit cards to purchase goods and services on internet. They would like to use the future money and have not extra money to save in bank. When people are spending more than their income, they will be very hard to manage their savings accounts.

reference link
http://www.3debtconsolidation.com/top10-causes.html




Prevention for credit card debts

Manage your finances
When using credit card to purchase goods and services, we must determining our monthly income and expenses. It will help to keep on track before you ever even pull out the credit card .Thus, we also need some savings to avoid having to put large amounts of debt on a credit card in times of a crisis.
Early Education
Due to the growing in e-commerce field, credit card payment has become a common way payment in daily life. It’s imperative to teach our younger generation very early about the value of money and how to manage finances. This is a best way to prevent them will be to fall into credit card debt problems in future

Use it like Cash, Not a Credit Card
Credit card is not cash. It is just a plastic card slides right out of your wallet with little effort at the checkout counter. Each time you pull it out it looks and feels the same. You cannot physically feel your charges climbing higher and higher. But with cash on hand can physically feel how much or how little you have. So, they have a self control with their money when spending for goods and services.

Pay on time
Due to universal default clause in credit cards’ terms and conditions, credit card companies can raise your interest rate if you are late paying any creditor. Thus, we must never make a late payment to anyone including car and house payments. This is a best way to reduce credit card debt.

reference link
http://www.cardratings.com/howtoavoidcreditcarddebt.html

e-currency

Electronic currency refer to money or cash in a which is exchanged only electronically in a digital form. In general, this involves use of computer networks, the internet and digital stored value systems. These technologies enabling collective system for electronic currency by implemented Electronic Funds Transfer (EFT) and direct deposit in internet .




E-currency was providing several service benefit the user on the internet like e-gold and paypal.

1. The e-currency can be used to make payment for goods and services in Internet shops such as shopping on the internet and doing personal investment via internet.

2.The using of the e-currency services for example e-gold and paypal brings people a new way not to use their credit card as the only payment method on the internet.This service provide a safely store money funds on electronic account .After using this services, users does not have to provide their credit card information to the stranger merchant who most of them are far away in the other side of the earth .

3.The e-currency service companies such as e-gold ,paypal and can perform money transfers between both the buyers and merchant in the convenient way to send and receive the payment in various business projects in Internet.The users can just by clicking the confirm button and the deal is done.



In Malaysia, we have develop a electronic purse which call “touch N Go” .It is a smart card use to store money and transfer it to electronic payment .This smart card can be used at all highways in Malaysia, major public transports in Klang Valley . Besides that,This services has growth into a widely used electronic cash system in convenience stores, supermarkets, fast-food restaurants, on-street parking meters, car parks, and other point-of-sale applications such as service stations and vending machines.

reference link
http://www.giexc.com/

Mobile payment

Mobile payment (also referred to as mobile web payment or WAP billing) is the collection of money from a consumer via a mobile device such as their mobile phone, Smartphone, Personal Digital Assistant (PDA) or other such device. Consumer can easily to make a transaction by using their mobile device to purchase goods and services at anytime,anywhere without cash on hand,,cheque,or physically present a store.

As nowadays, many companies in Malaysia are implementing mobile payment to convenience their customer .The common services they provide to customer are include payment for transportation, parking, restaurants, convenience stores, retail outlets, e-ticket.For example, Maxis ,DIGI, CELCOM are the telecommunication companies that provide many type of mobile payment services to a customer. One of the services normally use by customer is top-up their phone credit via the mobile phone without physically present in counter to pay their phone bill..




Besides that, customer also can easily to get their digital goods such as ringtone, games and the wallpaper for mobile phone through by SMS based transaction payments or mobile web payment (WAP)

Mobile payment system have a great potential for to become an important electronic payment channel in the Malaysia considering most of the Malaysian population are subscribing to mobile phone services. The adoption for this service can help to save a lot of time without physically queuing up for bill payment in counter. It definitely benefits a people who busy routinely in a lifestyle. It will growth consistently and developing due to improvement

Strategies:
1. Educate consumers about mobile payments, how to use and introduce its functions (e.g. bill payment, mobile purchase)
2. Enchance security and confidence to mobile users
3. Collaborate with more banks and companies to widen the ability to pay via mobile at the same time it helps to increased customer’s satisfaction and confidence
4. Maintain customer’s loyalty



In Malaysia, most of the company adopt reward strategies system by provide free gift to consumer at certain level of purchasing goods and services or giving redemption of reward. For example, DIGI company reward their customer with double credit for who during a birth.