Electronic Currency

The Evolution...

Over the years, money as we know it has been undergoing transformation. The shape and form of money has changed from precious metals to metal coins and paper money with no intrinsic value and today it presents us with a formless form in the name of digital or e-money. Electronic currency is also known as e-money, electronic cash, electronic money, digital money, digital cash or digital currency.

Electronic currency allows consumers to pay for goods and services by transmitting a number from one computer to another. These numbers function much like the serial numbers on "real money." They are unique, and represent a specific amount of actual cash. Unlike credit-card transactions, electronic-cash transactions are anonymous. E-cash works just like paper cash. Once it is withdrawn from an account it does not leave a trail of digital crumbs. E-cash by its nature is portable and therefore more convenient for mobile commerce (Internet-capable cell phones and personal digital assistants).

The Pros

1) Convenience-With the introduction of online banking, debit cards, online bill payments and internet business, 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.

2) Ease of transter-Banks now offer many services whereby a customer can transfer funds, purchase stocks, contribute to their retirement plans and offer a variety of other services without having to handle physical cash or cheques.Customers do not have to wait in lines, and this provides a lower-hassle environment.

The Cons

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

2) Failure of technology- There is also a pressing issue regarding the technology involved in digital cash. Power failures, loss of records and undependable software often cause a major setback in promoting the technology.

3) Possible tracking of individuals and loss of human interaction- There is a fear that the use of debit cards will lead to the creation by the banking industry of a global tracking system. Some people are working on anonymous ecash to try to address this issue. The issue of providing anonymity to users itself introduces more problems, where there is a possibility that a fully anonymous digital cash system could induce people to commit the “perfect crime” to occur, where a criminal uses someone else’s electronic cash to make a payment, but cannot be traced.

Electronic Cash Payment Systems

Examples of providers:

Pay Pal- an e-commerce business allowing payments and money transfers to be made through the Internet.
eCash- a computer generated system which allows items to be purchased by credit card, check or by money order, providing secure on-line transactions and processing.
First-E – an Internet-only bank.

Credit:

• en.wikipedia.org/wiki/Electronic_money
• www.projects.ex.ac.uk/RDavies/arian/emoney.html
• -http://http//www.murdoch.edu.au/elaw/issues/v6n3/ishman63.html
  

THE APPLICATION OF PRE-PAID CASH CARD FOR CONSUMERS

Pre-paid cash card is a card that has similar function as a credit card, but the only difference is a certain amount of money must be deposited or reloaded before it can be used. It is better known as a stored-value card that gives the consumer the ability to purchase the products and services by just swapping the card at the counter. Basically, a prepaid card, limits consumer’s spending by the amount of money that has been loaded onto the card. It is a good way to keep track of our spending so that we don’t overspend. Whenever, a consumer make a purchase with the pre-paid card, the purchase amount will be deducted from the card balance. A consumer can add more money whenever the balance runs low because he or she can’t spend more than the balance left in the card. Infact, a pre-paid cash card is very convenient as a consumer no need to carry cash with them.

An example of pre-paid card widely used in Malaysia is Touch 'n Go which was used to pay the highway toll payment. It is very convenient for highway user as they don’t have to go through the long queue congestion at toll plazas. Users just need to tab the card on the sensor and the amount will be automatically deducted. User can reload the card at many places such as toll plazas, train stations, Automated Teller Machines, and Cash Deposit Machines.

Nowadays, touch 'n Go card usage becoming wider as it can be used for parking services, public transport, theme park and cashless payment at retail outlets. Another extension of Touch’n Go card is Smart Tag which has slightly advanced technology whereby the card is inserted into reader device installed in the vehicle for fully non-stop payment at toll plazas. All you have to do is just drive through the toll and the sensor will automatically read the device installed in the vehicle. More on Touch n Go...

Another foreign example of pre-paid cash card is the Octopus cash card used in Hong Kong. Basically, the application of this card is similar to Touch’n Go card. The people in Hong Kong use this card to pay public transportation fees whereby it only take a couple of seconds and even easier as they no need to carry coins(Yes!it is the card that you always see in HK drama). Octopus card can also be used in some retail shops that accept this card, such as convenience stores, supermarkets or even restaurants. The user only need to wave the card over the Octopus Reader (even if it's in your wallet or handbag), payments will be deducted instantly (provided there is enough money in the card). The reader will also show the new balance of the Octopus Card. It is very convenient to use Octopus cash card as it can be purchased from any public transportation company's customer service centre, such as MTR's or KCR's and infact, can top-up the card easily.

Some other, country’s pre-paid cash card are Coinstar prepaid debit card in Canada, Advance Visa prepaid card in America, Just Cash Maestro prepaid card in West Yorkshire and ACE Cash Express prepaid card at United States. In conclusion pre-paid cash card is gaining its popularity among other countries and there is no risk for the user to get themselves into debt as it has no credit or overdraft facility.

CREDIT:

• http://www.touchngo.com.my/
• http://www.hong-kong-travel.org/Octopus.asp
• http://en.wikipedia.org/wiki/Image:AdultOctopusCard.jpg
  
  

Credit card debts: Causes and Prevention

Do you know when and who has invented the credit card? The concept of paying merchants using a card was invented in 1950 by Ralph Schneider and Frank X. McNamara in order to consolidate multiple cards. The Diners Club, which was created partially through a merger with Dine and Sign, produced the first "general purpose" charge card, which is similar but required the entire bill to be paid with each statement. It was followed shortly thereafter by American Express and Carte Blanche.

Credit card debt is a burgeoning problem throughout the world undoubtedly. As a credit card holder you must be one that with budget and good in self-control. Otherwise, you might unable to pay off accumulated debts and then lead to bankruptcy.
what causes credit card debts? Here it goes:
1. Poor money management~ you may encounter problem like over spending, non-payment of the debts without money spending plan. With that, you will know that how much money you can spend on. Thus it is vital to have it.

2. Multiple credit cards ~ there are some people like to show off their social status by having multiple cards which in turn creating sky high credit card debts.

3. Financial illiteracy ~ many people do not realise how money works and grows and how to save and invest money for future needs. Financial mistakes are increasingly expensive and complicated to resolve. Thus, it is essential to learn from expert and get in control.

when comes to debts it is to say prevention is better than cure.
Below are methods to prevent credit card debts:
1. You can pay off smaller balances first. It is common for a person to try to focus on their cards with larger balances first. Pay off the smaller ones. It will take less time and you will feel a sense of satisfaction when you have actually completed your goal. This will boost your confidence and make it easier to tackle the higher balances.

2. You can pay double the minimum payment if affordable. The minimum payment usually pays just enough to cover the interest and a little more that pays down the balance. Paying extra will pay your balance more quickly.

3. You can keep your credit cards to a limited number. It is not necessary to have more than one credit card. If you want to have a card that you can use everywhere, try just having a Visa, MasterCard, or American express card which are all used everywhere

4. You can create a letter to your credit card company stating that you are thinking of switching to their competition because other companies are offering a far more reasonable interest rate. Most probably Credit card companies will match or even offer a lower rate than the competitor as they do not want to lose your business.

5. You can also avoid making any purchases with your credit during peak buying season. As credit card companies charge you more interest during these peak seasons because they know that everyone is buying more items with their credit

6. You can have a direct debit set up. So that you have to pay back full amount each month.

credit:

• WORLD'S FIRST CREDIT CARD


• Diner's Club, Inc. (Early Credit Card Company) - New York1963


• The first credit card was issued in 1951


• Credit Card Debt Prevention

You may also want to have a look at this sites:

• Top 10: Best Credit Cards http://www.askmen.com/money/investing_200/225b_investing.html

Review:OpenTable.com - Online restaurant reservations

Online restaurant reservations
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Have you ever made a reservation trough the net?? Well such e-commerce business model is not something new in the overseas but certainly an innovative idea to be implemented in Malaysia itself.

Imagine, you making a reservation in a single click within seconds? It just spells convenience isn’t it?, what else better than being F.O.C (Free of Charge). All you need to do is to click upon the restaurant ,fill in your particulars, number of seats ,time and date..Voila~..here’s you reservation sir/miss.

I've tried myself by just searching randomly with a keyword "Steaks", pops, here it goes, information on the restaurant just pop out within seconds.Easy,Fast and Useful.OpenTable.com is certainly a recommending site.Our neighbour, Singapore is now starting to implement such concept. If you have any chance to be in Singapore,try to make a reservation online.

Though in Malaysia we don’t own site with such services, we shouldn’t be ashamed of as we had site with similar characteristic, Foodvenue.com which provides food delivery trough the net, reviews on food from hawkers to high end restaurants in Malaysia and listing almost 3000 restaurant in their list. What the site is lacking of is online reservation like OpenTable. Haha, should I make a suggestion to Foodvenue, telling them to include such features? instead of just plainly listing the restaurant's name.
credit:

• http://ecommerze.blogspot.com/2007/06/opentablecom-onlne-restaurant.html
• http://www.foodvenue.com