The Application of Pre-paid Cash Card for Consumers

A prepaid cash card represents money on deposit with the issuer, and is similar to a debit card. One major difference between stored value cards and debit cards is that debit cards are usually issued in the name of individual account holders, while stored value cards are usually anonymous.

The term stored-value card does not necessarily mean the funds data is physically stored on the card. In many cases the data is maintained on computers affiliated with the card issuer. The value associated with the card can be accessed using a magnetic stripe embedded in the card, on which the card number is encoded; using radio-frequency identification (RFID); or by entering a code number, printed on the card, into a telephone or other numeric keypad

Besides, Prepaid cash card such as prepaid credit card can help you control your spending. It also a reload able debit card allows you to only spend up to the amount you have pre-deposited into the account. Hence, if you tend to overspend or would like to control you’re spending then a pre-paid cash card could more suitable for you rather than the traditional credit card with "attractive" credit limits. Moreover, a prepaid credit card can help the user to save the interest charge on the previous spending which is unsettled.By using the prepaid concept, you can now have greater control of your spending because the budget and limits are in your hand.With prepaid credit card, who else are gonna to queue for almost half hours at Sungei Wang Plaza to withdraw their cash to shopping ?

Touch N Go is another prepaid cash card which is broadly use in Malaysia. Touch N Go is an electronic purse that can be used at all highways in Malaysia, major public transports such as KTM( Keretapi Tanah Melayu), LRT and Monorail. Nowadays, Rapid KL are also accepting Touch N Go as one of their payment method.

Touch ‘n Go uses contactless smartcard technology. The card's size are similar to a credit card. User can continue using the card as long as it is pre-loaded with electronic cash. User can reload the card at toll plazas, train stations, Automated Teller Machines, Cash Deposit Machines, Petrol kiosks and at authorised third party outlets. Touch ‘n Go enhances the speed of paying for low value but high frequency transactions. Apart from the speed, it is also very convenient because user no longer need to prepare for small change or wait in queue at the cash lane to complete the transaction.

Reference

1.http://www.wisegeek.com/what-are-prepaid-credit-cards.htm

2.http://www.touchngo.com.my/WhatTNG.html

Prepared By Ruiz

All right reservced by EnT02 Group Rui,Ean and Agu™

Electronic Currency

Well, electonic currency is also known as e-money, electronic cash, electronic currency, digital money, digital cash or digital currency which is exchanged only electronically. The transactions involves use of computer networks, the internet and digital stored value systems. As for example are Electronic Funds Transfer (EFT) and direct deposit. As for security, the private currecny may use gold as extra security, such as digital gold currency.

Electronic currency is precious metal-backed internet currency. Individual open an account to deposits money with an online electronic currency company that then converts the amount into gold bullion. The account holder can transfer ownership of some or all of that gold into someone else's electronic currency account. Ownership can be repeatedly transferred. Electronic currency has been widely used by perpetrators of pyramid scams. Swindlers demand payment in e-currency because, unlike with checks or credits cards, the charges clear instantly and cannot be cancelled. Experts estimate that about half of e-currency transactions are related to scams or online games.

An electronic currency system may be fully backed by gold (like e-gold), non-gold backed, or both gold and non-gold backed. Two major types of electronic currency their backed base. One is backed by precious metal such as e-gold is backed by gold .Another type of electronic currency is backed by hard currency like Pay Pal. Both of them are all called electronic currency.

Untraceable digital cash is here. It will become easier to use and more established in the next several years. It is indistinguishable from speech, so any laws intended to control it will almost certainly impinge on speech in general. While scare tactics may work to drive average users away from using digital cash, those operating on the margins have the most to gain and lose and will likely not be dissuaded by such laws. Not only have criminals rarely been dissuaded by tax and banking laws, but here the chances of getting caught are nearly zero. Boom markets in information of all kinds can be expected.


References:
http://osaka.law.miami.edu/~froomkin/articles/tcmay.htm
http://en.wikipedia.org/wiki/Electronic_currency


Prepared by Agu

All right reservced by EnT02 Group Rui,Ean and Agu™

Credit Card Debts : Causes and Preventions

A credit card is a system of payment named after the small plastic card issued to users of the system which allows the owner to obtain goods and servives without the requirement to pay cash and on credit terms.Or a card (usually plastic) that assures a seller that the person using it has a satisfactory credit rating and that the issuer will see to it that the seller receives payment for the merchandise delivered. It is a card that may be used repeatedly to borrow money or buy products and services on credit. Its issued by banks, savings and loans , retail stores, and the other busimesses giving consumers the right to charge purchases and pay for them later.

Credit card debt is dumb. Most normal people are just plain broke because they are in debt up to their eyeballs with no hope of help. If you're in debt, then you're a slave because you do not have the freedom to use your money to help change your family tree. Debt ocurred when a client of a credit card company purchases an item or service through the card system. Debt accumulates and amount increases via the certain interest and the penalties will be given when the consumer does not pay the money to the company that he or she has spent. The company will charge late payment penalty to the consumer that are not paying the debt on time and also will report the late payment to credit rating agencies. Besides, credit card debts is an example of unsecure consumer debts accesses through the small plastic card.

The causes of credit card debts are stated as the following :

Firtly, the poor money management may caused the debts.The spending plan is very critaical for every month. If u do not have a well spending plan u may face the problem of spending money. You may have no idea where is your money spent.The good planning on spent money may lead you make a wonderful decision on how you spent your money.

Secondly is the underemployment.A close cousin to No. 1, people who experience under employment may continue to think of it as only temporary or if they are coming off unemployment feel a false sense of relief. Yes, you deserve a break, but this is not the time. Get those expenses in line with your current income. Down the road if you increase your income due to more hours, a second job, or a better job, then is the time to start adding in some of the previous spending before you became underemployed.

Lastly, is financial illiteracy. Many people do not understand how money works and grows, how to save and invest for a rainy day, or even why they should balance their checkbook. You have to know that you are responsible for your life and your money anyway. Financial mistakes are increasingly expensive and complicated to resolve or even can't solve it.You need to get educated and get in control to avoid the debts.

Now, im talking about how to prevent the debts.You have to pay off the entire outstanding balance each month to avoid the credit card debts. If you must carry a balance from time to time, pay off most of the balance each month. If you can only make the minimum payment each month, you are in over your head. The best methods is to stop using the credit card until you pay the entire balance off.

Besides, another good way to cut down the debts is not to charge the items like meals, groceries, or going to movies that would not exist on the statement. using cash nmoney to pay all those things, its might you to reduce the debts and save the credit for future or real necessities.

Futhermore, you have to make sure that the sufficient money to pay off the purchases after using the credit card. You have to bank in the money on time to cover the debts. You must have a budget before you make a purchase.If you do not have enough money to cover the purchase, and the item is not for an emergency, you do not used the credit card to charge it.

References :
1. http://en.wikipedia.org/wiki/Credit_card_debt
2.http://www.nolo.com/

Prepared by Lew Pei Ean
All right reservced by EnT02 Group Rui,Ean and Agu™

A Review on a Post on E-tailing from Our Lecturer's E-Commerce Blog

Dell is shifting away from direct sales online

Dell computers to be available in PC superstores in Europe

1st Dell physical store in Malaysia!

After reviewing these 3 topics which is prepared by our lecturer, i found that Dell.Inc, which is one of the big name in E-Commerce, are also strengthening their blick-and-mortar business model.

I was only recognized Dell after i graduated from secondary school. As i know, Dell.Inc is a electronic product such as desktop, laptops, monitor,pda manufacturer and seller. They build their business basis via Internet, which called E-Commerce. After these, I have further study about Information Technology knowledge which is applicable into real world business.Once again, I study much more about Dell. I studied that Dell is sustaining their competitive advantages by using low cost strategy, which they doing their main transaction via Internet, a Business-to-Consumer model. They are cost leadership in the industry compare with its competitors because they save a lot of cost on physical outlets, chain stall and more.

But now, Dell are also expanding their business in physical store. Is that meaning that Online Business are no longer profitable ? Or Dell's management feel that doing business via physical store will boost up their sales in these highly inflation period ?

In my opinion, Dell should construct their physical store without a doubt. Why do i say so ? Let us further discuss about this:

1. For those which is adopting computer technology, they might found that it was difficult to locate and understand Dell's transaction method or even their product. If there was a physical point of purchase, that will be ease for the consumer as they can feel the product and the services by the mechant.

2.There are several agent or company that are doing reseller of Dell's laptop.I am not very sure about whether they are authorized, but i feel that why don't Dell do it their own rather than setting up such more intermediaries to decrease their profit ?

3.Comparing with other competitor which were setting up their Physical store such as Sony Vaio, HP, or even Apple Mac, Dell are losing in the point of Impulse Purchase. When the consumer are making their decision of purchase, they will possibly go to the market and searching for more information to conclude their sales. In these step, they will usually looking for other alternative or another better choice for their final decision. Dell's laptop are seldom can be found or displayed in the store. Hence, the ordinary Dell's buyer might switch to its competitor due to the persuasive service or promotion by the store.

Prepared by Jennifer.

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