The application of pre-paid cash card for consumers

Nowadays, pre-paid cash card are being used around the world. Pre-paid cash card is pre-paid debit card that enables the holder to make purchases and have them deducted from the card’s available balance. A cash card may be branded with a major credit card issuer’s logo, such as American Express, MasterCard, Visa, Octopus card etc, which enables the holder to make purchases wherever those card are accepted. Other types of cash cards that have been widely used in Malaysia are Touch’n go, Smart Tags and etc.

The prepaid cash card can be used in several way:

1. Online payment. Card holders can use it to buy things online and booked airlines ticket whenever they wish.

2. Toll payment. Using Touch’n go or Smart Tag is the expressway of making toll payment at all highways and use for public transports’ fares like bus, LRT and so on.

3. Shop anywhere. As long as the card using is accepted by different retailers such as buys fuel at the petrol station, buy clothes, beauty card product, etc.

4.Transfer money. For some prepaid cash card they provide the convenient such as send or receive money via bank wire transfers, between two cards.

5. Replacement for travelers’ cash. Travelers buy prepaid debit cards denominated in the currency of destination, and then use them to withdraw cash at ATM or pay for goods or services. This is much safer and more secure than carrying around with a large amount of cash.

In a nutshell, pre-paid cash cards are useful payment tool as there is no debt risk because holders will have no chance of spending too much as they are limited to the amount they transfer into the card. It is indeed a good invention for holders to manage their own financial control.

Useful links:

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

http://www.creditorweb.com/definition/cash-cards.html

Credit card debts : causes and prevention

Nowadays, almost everyone can have one credit card on hand. But what is credit card? A credit card actually is a any card that entitling holder of the card to buy goods and services based on the holder's promise to pay for these goods and service later. However, this may caused the numbers of credit card debts increase until create a major problem of bankruptcies each year.

Here are some reason that caused credit card debts:

a) Less income and more expenses - when someone loses his job or and his monthly expenses continued increased, this obviously leads to a rise in debt.

b) Poor money management - people who did not have a monthly spending plan and keeping the monthly bills will lead them unware where the money is going. This forcing you to pay interest on that money.

c) Saving little or not at all - everyone should have saving money habit to face an unfortunate tragedy happens. If you do not have enough money when there is an emergency, you will suffer a much more tragedy.

Even though credit card can caused a seriously debts to somebody but there are still several debt prevention methods:

a) Pay on time - Sometimes, the credit card companies can raise your interest rate if you are late paying to the creditor. Thus, in order to reduce the risk of spending too much money,and it is to better pay on time.

b) Manage your finance - a good strategy will help you control on your credit card using. You must identify your monthly income and the needed expenses every month in order to prevent over spend.

c) Self control and discipline - one of the best practices is to have a direct set up on your own so that able to pay back the full amount of debt for every month. Therefore, self-control and discipline to keep these card is important in order do not over spend.


Related links:

http://en.wikipedia.org/wiki/Credit_card
http://littleangele-commerce.blogspot.com/2009/02/credit-card-debts-causes-and-prevention.html
http://www.3debtconsolidation.com/top10-causes.htmlhttp://ecommercesite.wordpress.com/2008/06/25/credit-card-debts-causes-and-prevention/
http://www.cardratings.com/howtoavoidcreditcarddebt.html

Electronic currency

Today, many business owners are using “e-commerce” to make money and for consumer they get convience dealing with online transaction as they can make the payment by just a simply click on the confirm button and the deal is then completed. The payment paid though online is calling electronic currency. Electronic currency is also known as electronic cash, e-money, digital money, digital cash digatal currency and so on. Normally,its involve in computer networks, the internet, and digital stored value when using electronic currency. It served as universal media of exchange for money and scrip. The common example of electronic currency that everyone similar is Electronic Funds Transfer(EFT) and direct deposit.

Examples of e-micro payment system:





1. Bit Pass (bitpass.com)
Bitpass was founded in December, 2002. This system was one of the online systems for digital content, services, and its can works similarly to a pre-paid telephone card. Furthermore this system also allow their customer to sign up for the services and put money into your account using a credit card or paypal in order towards the purchase of content. Bitpass has an easy integration with paypal. Moreover, Bitpass announced that they were shutting down due to the 'circumstances beyond our control' on 19th of January in 2007.

2. PayPal(paypal.com)
PayPal is a business that carrying out towards e-commerce that allowing online payment, and money transfer service that allows their consumer to send money via e-mail, phone or by electronic debit from a bank account and credit card through the internet. PayPal performs payment processing for online vendors, auction sites, and other corporate users, for which it charges a fee. The fee will charge in added a small portion into the cost per transaction.

Pros of using Electronic Currency
1) Electronic currency is cheaper because it allows transaction to take place through internet at a low costs.

2) Convenient for consumer to shop through online and save their time and effort by going shopping in centers.

3) Faster, because by this Electronic Currency the transaction can be done in a few seconds. (Example: ATM)

4) Confidentiality because customer information will not easily passes or explore to other parties due to the security provided by the use of encryption.

Useful Link:

http://wwwbloggerecommerce.blogspot.com/2009/07/electronic-currency.html
http://images.google.com.my/imageshl=en&q=useful+link&btnG=Search+Images&gbv=2&aq=f&oq= http://www.e-currency-directory.net/definition_e_currency.htm