The application of prepaid cash card for consumers

Undoubtedly, prepaid cash card has become one of the most important payment methods in this era. For example, the MasterCard prepaid cash card is a popular payment option in the United States and Canada. Prepaid cash card uses not only for payment usage but also make you hard to get credit in order to control your finances.

A prepaid cash card is a plastic card which provides an alternative payment method to cash when making purchases. Before using, consumers will need to preload their prepaid cash card with different ways such as by direct transfer from a bank account, or by paying in cash at a nominated outlet. Therefore, the prepaid cash card is accepted in most of the ways that a normal card be. Nowadays, there are a lot of bank offering the prepaid card, such as, Eon Bank, Public Bank, Am Bank and others. However, prepaid cash card is also divided into Visa prepaid and MasterCard prepaid.

The Visa’s prepaid cash card offers a secure, cost-effective, and convenient alternative to paying by checks or cash. These products enable many consumers to access their pre-funded pool of funds to make everyday purchases, pay bills, and even receive direct deposits with a Visa prepaid cash card. However, the MasterCard Prepaid card gives consumers the added flexibility of loading an amount of money with up to a preset limit into an account associated with the card. The cardholder then uses their MasterCard Prepaid card to make purchases or cash withdrawals at an ATM. Those purchases and cash withdrawals are deducted from the account balance. As the balance is spent, the cardholder can reload additional funds on to their card.

There are several benefits in using it which bring convenience to the consumers. The cardholders can use Visa prepaid cash cards to securely pay for groceries, fuel, and even utility or household bills. Prepaid cash cards can also be used for making payments on the phone or line, and, in some cases, withdrawing cash at ATMs. Moreover, it’s also a safety for the cardholder. Cardholders can make purchases or get cash whey they need it, rather than carrying large sums of cash. Finally, it’s also has provided a protection to the cardholder, while the cardholder can replaced if lost or stolen and carries the same liability against unauthorized purchases as other Visa cards.

Following are some popular prepaid cash cards:

NexG PrePaid MasterCard

NexG prepaid MasterCard is the product of prepaid cash card of Am Bank in Malaysia. It can be obtained in all 7-Eleven shops in Klang Valley. Consumer who wants to get it just needs to sign his name on reverse of the card and submit registration form in the Starter Pack, along with a photocopy of NRIC. The starter pack is RM25. The monthly fee is RM3 per month, which will be deducted automatically.

Touch ‘n Go card

Touch ‘n Go card is an electronic purse that can be used at all highways in Malaysia, major public transports in Klang Valley, selected parking sites and theme park. Touch ‘n Go uses contactless smartcard technology. Users can reload the card at toll plazas, train stations, Automated Teller Machines, Cash Deposit Machines, Petrol kiosks and at authorised third party outlets. Reload denomination is ranging from RM20 to RM500.

PB UTAR Debit MasterCard

PB Utar Debit MasterCard is one of the products of prepaid cash cards of Public Bank in Malaysia which is just applicable for UTAR students. The card is a free for life card with no terms and conditions. Users can enjoy 1 TAR point for every ringgit charged to the card which can be used for redemption of reward.

By:

Wong Zheng Hwa 0701815

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

Mobile payment is new and rapidly-adopting alternative payment method, especially in Asia and Europe. Instead of paying with cash, check or credit cards, a consumer can use a mobile phone to pay for wide range of services and digital or hard goods. There are four primary models for mobile payments which are premium SMS based transactional payments, Direct Mobile Billing, mobile web payments and contactless NFC.

Cash payments in Malaysia still account for a large portion of the number of transactions in the economy. Going forward it is expected that its use will level off and stabilise with the increased use of electronic means of payments. Credit cards, ATM cards, debit cards including the e-purse application embedded in the MyKad are among the card payments possibilities in Malaysia. The increased use of cards is an international trend and is expected to gain significance 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.

Mobile payment systems own a good potential in Malaysia and it can be seen below. Bank Negara Malaysia sees tremendous promise in mobile telecommunication networks as an electronic payment channel since mobile phones are already in the hands of most Malaysians, with 88% of the Malaysian population subscribing to mobile phone services. With 25 million mobile phone subscribers in Malaysia, there are immense opportunities to leverage on mobile phones to accelerate the migration to electronic payments, to widen the reach and appeal of electronic payment services, to deliver innovative mobile payment products that offer speed, simplicity and convenience at minimal cost for the public, as well as to provide an efficient and cost-effective method of delivering financial services even in the remote areas. Also of significance is the high level of financial inclusion in Malaysia. With a population of 27 million, the banking system in Malaysia has 55 million deposit accounts indicating that a high percentage of the population has deposit accounts with the banking system. This is confirmed by a survey of a sample of 5,000 in 2003 that indicated 97% of those surveyed have a bank account. There are now only 460,000 subscribers for mobile banking and payment services. This represents only 1.8% of the 25 million mobile phone subscribers in the country. There is, therefore, a significant untapped and potentially lucrative market for mobile payment and banking services.

Following are some examples of mobile payment systems:

Mobile money wallet


Mobile Money is a PIN-based Mobile Payment Solution designed by Mobile Money International Sdn Bhd to address the limitations and bottlenecks created by cash, cheques and credit cards. It unlocks the power of the mobile phone to make payments, allowing registered users to pay for goods and services at anytime, anywhere using only a mobile phone coupled with a 6-digit security PIN via SMS. This gives the freedom to shoppers to buy products online and pay the merchant using his/her mobile phone without being physically present at the store. In order to pay using Mobile Money, a shopper must have a savings, current or credit card account with participating banks. 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 deducated instantly from the account upon successful transaction.

TeleMoney


TeleMoney is an innovative mobile payments service that enables the use of the mobile phone as an identification and authentication device for making convenient and secure payments. TeleMoney can be used over multiple channels including Internet, mobile and proximity (over-the-counter) and it supports multiple payment choices.


By:

Teng Yann Guan 0701652

E-Currency Exchange: The Perfect Home Based Business

Many people looking into a home based business or additional income stream may be new to the idea of e-currency exchange. It is not something that is generally well publicised or read about in home business magazines. However e-currency trading has experienced a rapid growth over the last two years, with more people becoming involved and increasing profits being made for those who choose to invest.

E-Currency exchange was established 3 years ago, when investment companies allowed their users to open up portfolios to watch their capital grow. Since then, many people have made thousands of dollars by orientating their business ventures around this objective.

The idea works by temporarily making funds available to a global financial network through a number of recognized, reputable electronic currencies such as Paypal, E-Gold and E-Bullion. When transactions take place online, using electronic currencies, the user is charged a commission fee, which is typically around 5%. As a reward for your investment you are able to share in a proportionate amount of the profits generated from this financial network.

As an e-currency trader, you are acting as a middle-man. The concept I find most straightforward to explain this notion is to envisage the position of a stockbroker. The stockbroker will always get paid as long as shares are being bought and sold, regardless of whether the price of the shares goes up or down. He acts as the middle-man between buyers and sellers. So as long as transactions continue online, there will always be the opportunity to make money.

It is very similar to having a bank account and gaining interest based on the money you have in there. The most advantageous connection between the two is the fact that your investment never actually physically goes anywhere. It is just used as a bargaining chip by the companies who trade in electronic currencies.

A home business in e-currency exchange is by no means a 'get rich quick' scheme. Programs that offer you these kind of opportunities are rarely genuine. Willingness to learn is a crucial part of making this trade work. However this can be easily overcome with a little training. There are some excellent resources out there that will take you step by step through all the ins and outs of this business so you are able to effectively manage your portfolio and master all the terminology.

The amount of risk involved in a business venture like this forms the basis of one of the most frequently asked questions. I can tell you that anything you do to try and leverage and improve your lifestyle involves some kind of risk, however, when you look further into the e-currency industry and make enquiries of the investment companies used, it will become apparent that there are very sophisticated methods undertaken to reduce any risk for their customers to an absolute minimum. I would still recommend, along with any sensible investor, to never invest more than you can potentially afford to lose.

To any potential investor, the best and most crucial piece of advice is to find the right training program. Programs with phone and email support are absolutely essential as are training updates, which will keep you up to date with any changes to the industry.

By:
Chua Sin Yee 0701651

Credit Card Debts: Causes & Prevention

Credit card is a type of payments system that a small plastic card issued to users of the system. Most credit cards are issued by local banks or credit unions. It is a card entitling its holder to buy goods and services based on the holders promise to pay for these goods and services.

Credit cards debt results when a client of a credit card company purchases an item or service through the card system. Debt accumulates and increases via interest and penalties when the consumer does not pay the company for the money he or she has spent. The late payment penalty itself increases the amount of debt the consumer has.

There are some causes that bring out the credit card debts,

1. Reduced income/same expenses.
Too often we delay bringing expenses in line with a reduction in income and are not cut down in line with the reduction in income. This obviously leads to a rise in debt. The sooner you adjust to your new reality, whether it be temporary or permanent, the better off you'll be.

2. Saving little or not at all
You should save for at least 4-6 months of living expenses in case an unfortunate tragedy happens. You will often hear the phrase "Pay Yourself First." Having enough savings for a rainy day is always a worthwhile investment. Do it and you shall be better off!

3. Gambling.
Either way there is a guaranteed exchange of money from you to "the house." It can be addictive, hard to stop and loans are freely available. Gambling establishments may be the only place you can mortgage your house while intoxicated and have it be legal. Do not spend tomorrow's saved money today just because you expect a promotion in your job.

4. Poor Money Management
Poor money management is one of the best reasons why so many families accumulate lots of debt. A monthly spending plan is essential. But not having a monthly spending plan and not keeping track of your monthly bills makes you unaware of where your money is going. You will be surprised at how powerful you'll feel when you are making thoughtful decisions about where and when to spend your money.

5. Underemployment
If you are underemployed meaning you are not getting enough working hours at your job, you should also cut down on your lifestyle to match your current income. 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. Those people should get those expenses in line with their current income.

6. Big medical expenses
Almost all doctors accept credit cards in the USA. While you need treatment now, you do not have the cash. So what do you do? You use your credit card because you do not have enough savings in the bank. The medical industry wants to get paid at the time service is rendered. They know that if they don’t the chances of their getting paid drops. This means more debt for you, less for them. To be fair, they are not in the lending business, but this only masks a bigger problem

7. Divorce
Fees for the divorce attorney, division of assets between you and your spouse, proceeds given to children, etc are an easy way to rack up a huge debt. Filing for a divorce may force you to quit working for sometime which leads to reduction in income.

8. No money communication skills.
It is important to communicate with your spouse or significant other and your children about finances. Keep the lines of communication open and discuss financial goals and spending styles. Many people find out that their spouses have racked up thousands of dollars in credit card debt and they had no idea that the accounts even existed.

9. Banking on a windfall

Spending tomorrow's money today is very tempting. Especially if you believe that tomorrow will come no matter what. A planned job bonus may not be a sure thing. The lesson is don't spend the money until the check clears.

10. 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. You are responsible for your life and your money. Financial mistakes are increasingly expensive and complicated to resolve. Get educated and get in control.

To prevent the debts of credit cards, try to keep your cards at a manageable level. There are some preventions:

1. Photocopy the credit card offer, including the interest rate and terms. Create a letter to your credit card company/companies stating that you are thinking of switching to their competition because they are offering a far more reasonable interest rate. Credit card companies do not want to lose your business and they will match or even offer a lower rate than the competition has offered.

2. If you can afford it, pay doubles the minimum payment. 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. 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.

4. Cut up your cards so that you are not tempted to use them. Save one card for emergencies.

5. If you have equity in your home, look into paying off credit card debt with a refinance or fixed-rate home equity loan. Do not use a home equity line of credit, the rates will rise as the prime rises and suddenly you may find it impossible to keep up with your bills.


By:
Lim Hooi Ting 0701396