~ Electronic currency ~

Electronic currency is also known as electronic money, electronic cash, digital money, digital cash or digital currency. It is used over the Internet, email, or personal computer to other workstations in the form of secured payments of "cash" that is virtually untraceable to the user. It is backed by real currency from real banks.

The way e-currency works is similar to that of electronic fund transfers done between banks. The user first must have an e-currency software program and an e-currency bank account from which e-currency can be withdrawn or deposited. The user withdraws the e-currency from the account onto her computer and spends it in the Internet without being traced or having personal information available to other parties that are involved in the process. The recipients of the e-currency send the money to their bank account as with depositing "real" cash.

Other than making purchases on the Internet, e-currency can also be found used in entertainment sites - on "gambling tables" in Internet casinos such as PAF Casino and Internet Casino. E-currency allows the exchange of money to be conducted in the same way as in real casinos.
With e-currency, consumers will be more comfortable with transactions over the Internet as it is a one-time transaction that cannot be traced back to the user, whereas with credit cards, hackers can obtain information of the card holder and commit frauds.

With the appearance of e-currency, the need for commercial banks to be involved in electronic banking and to back the electronic currencies becomes more apparent. However, there remains a skeptical view about having monetary transactions done over the Internet as it is a fairly public domain where there is easy access. Thus increasing and promoting commercial bank's interest in the Internet and conducting business over the Internet is necessary in order to further the development of e-currency and commerce in the Internet, as well as improving cryptography and security features of the systems.

E-currency is not completely anonymous as with hard cash since there is always the computer and the network, which can be traced. Also, there is the issue of possible criminal activity within the system by allowing criminals to spend illegal money easier if e-currency untraceable. These issues may only be addressable by some type of cyberspace regulations or laws that regulate the transactions and watch for signs of trouble.

Credit Card debts : Causes and Prevention

Now days it seems that credit cards are almost a necessity, rather than a luxury, which has caused many people to have a huge problem with credit card debt. Many people now have more than one credit card with a balance and you may even be one of those people. If you are one of the millions of people wanting to get out of credit card debt, then you first need to understand what caused the credit card debt problem to begin with.

Causes Of Credit Card Debts :

=> Spending money before you have it

Nothing in life is certain. Do not spend money that are expecting to get in the near future, but that you do not have currently. Whether it is an expected yearly bonus, a birthday present, an inheritance, or anything else, wait until you have the money in your account before you spend it. Or, better yet, save it!

=> Gambling

While this might not seen like as serious or common a cause of debt as the other reasons listed, gambling actually does contribute to a great deal of individuals’ debt problem.

=> Not understanding money

Even with the best of intentions, one can find him- or herself in debt simply by not being educated about finances. Without understanding how money works for you and against you, how it grows and how to use credit to your advantage, you may find yourself in a bad financial situation.

=> Failed business

It is an unfortunate fact that many start-up businesses fail, and when they do the results can be financially devastating for the business owner. Particularly for small businesses, business owners sometimes become personally liable for debts incurred on behalf of their businesses.

=> Not saving

Well now, this should come as no surprise! Saving even a minimal amount each month will allow you to build up an account that can help to protect against any unexpected costs, or against a loss of income, in the future. Remember the saying “pay yourself first”.

=> Relying on your credit cards

Credit cards should be valued for their convenience, but you should not be using them as extra income. If you are putting purchases on credit cards just to make ends meet, then you may be on the verge of serious debt trouble. If you do not have enough money to pay for something in cash, then you really do not have enough to pay for it via credit card either.

If you have credit cards, but have not yet let your spending get out of hand, then now is the time to take stock of your position and make some decisions about your financial future. Ask yourself what do you want those credit cards for? Do you just want them so that you have a source of payment in emergencies, to shop occasionally online, or when you travel abroad? Or do you plan on going on a shopping spree and spending the rest of the year struggling to clear the balance? Most people do not intend to ever use up their credit limits and max out their credit cards, but it is surprisingly easy to do, and can be very difficult to undo.

Prevention Of Credit Card Debts :

=> 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. Nine times out of ten they will match or even offer a lower rate than the competition has offered.

=> Pay double 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.

=> 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.

=> Cut up your cards

So that you are not tempted to use them. Save one card for emergencies.

=> Pay off credit card with a refinance home equity loan

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.

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

By searching online, Mobile payment ( M-Payment ) is a point-of-sale payment made through a mobile device, such as a cellular telephone, a smartphone or a personal digital assistant ( PDA ). In the business transaction, consumer make a payment by using cash, credit card or cheque. As with the advance techonology, customer in nowaday can make their payment and purchase for a wide range of services and digital goods at anytime, anywhere by using their mobile phone. The example of digital product are ring tones, video, books, magazines, music and other devices. With this services, consumers can make any transaction products without being physically present at the store.

With the rapid development of technology in Malaysia, people can also enjoy a secure and convenient way to conduct mobile payment system as it can be used in anyway and anytime. Nokia and Visa have provide consumers who with a credit or debit card with a cellular phone to register for enjoying this services. Besides that, mobile ATM customers can also make bill payment through their own mobile phone.

The service of mobile payment is safe and secure to the users as there is do not require of any cash, cheque and credit card to conduct their transacation and without fraund. Beside that, it is also confirm to the stringent requirement set by Bank Negara Malaysia and participating banks. Others than that, it provide faster settlement within 2 working days compare with other payments systems which normally take between 3 to 4 days. Further more, it has low transaction rate compared to what typically being charged by credit card.

As the conclusion, it is great to have this such services in Malaysia which can bring more convenient and secure to the users.