E-Commerce



Corporate Blogging: A new marketing communication tool for companies

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Corporate blogging is commonly published and used by an organization to reach its organizational goals. It become one of the most cost-effective Internet marketing tools due to companies’ growing need to interact with potential and existing customers. One of the earliest and the most influential company blogs was Fastlane which is a company blog in General Motors (GM) managed by Bob Lutz, the vice president of the company. It was created in January 2005 to listen customers’ complains about one of GM’s car brands, Pontiac.


Corporate blog enable that posts and comments are easy to reach and follow due to centralized hosting and generally structured conversation threads. Currently, there are some major browsers (including Firefox, Opera, Safari and Internet Explorer 7) support RSS technology, which enables readers to easily read recent posts without actually visiting the blog and it is very useful for low-volume blogs. However, certain corporate blogs might have a very high number of subscribers. Marketers might expect to have product evangelists or influencers among the audience of an external blog. Once they find their audience, they may treat them like VIPs and asking them for their feedback on exclusive previews, product testing, marketing plans, customer services audits and etc.




One of the successful blogs is Dell. Though Dell’s corporate blog, the company posts with a great conversational voice which often breaks news on their blog (which keeps people coming back) and listens and responds to customers. Dell also updates their posts regularly (at least 1-2 posts per day) which keeps content fresh and encourages repeat visits. Another successful blog is Adobe as they offers a huge collection of employee blogs and many of it is great to reads. By allowing employees to blog, Adobe has empowered them to evangelize their products for them as many post tutorials, advice and reviews in promoting Adobe products



Pros of corporate blogging

Corporate blogging is a way of promoting anything that may be public relations, marketing a new product, improving their brand image and also for research. It can be mean that corporate blog is a great tool for promoting a business as it can help in interacting with users easily and display their feedback. And when other people view the testimonials made by the customers, they may be satisfied that the company is listened to their opinion. Besides that, corporate blogging also able to achieve the goal of organization because the company expands as it caters the online customers who come across it and deal with them in a less formal environment, providing feedback and comments. The blog become a new less time consuming and less expensive way to reach potential and current customers. It also breaks down the wall between the business and the customer, creating a stronger relationship and greater responsiveness.

Furthermore, corporate blogging can provide additional value by adding a level of credibility that is often unobtainable from a standard corporate site. And as a result, the informality and increased in timeliness of information posted to blogs will assists with increasing transparency and accessibility in the corporate image. It also can interact with a target market on a more personal level while building link credibility that can ultimately be tied back to the corporate site. Further it also will enable company to do public speaking, build trustworthiness for them and also boost up the company credentials.

Moreover, instant feedback and communication can be reaching by using corporate blogging. As it can be see that if a customer has something to say or ask, it is easy to do it in the comments of the blog. Besides that, it is also a good way for a company to deal with criticism and other crises in order for the blogger to respond instantly. It can prove that they are genuinely interested in communicating with customers and bettering their services or products. And as a result, it can change overall perceptions of a brand.

Next is new content can be made ready available at a fair regular rate. This is because with RSS readers, it is easy to stay on top of their favorite blogs. And with a corporate blog, it is the best way to reach a lot of readers quickly so that their brand can stay fresh in their customer’s mind. It is also an easy way for them to update their content regularly without having to fuss with HTML or the actual webpage itself.



Cons of Corporate Blogging

The most common risk is that negative comments may arise and companies are often very sensitive to the criticism. This is because negative comments can be offset somewhat with a consistent and clear comment and also moderation policy. Further, readers tend to more trust on a site that includes both positive and negative information.

Besides that, corporate blog may lead to misunderstanding the audience. This is because blog audience is not same as the company typical customer base and properly they are universally more tech-savvy and up-to-date on industry news. They also may be more passionate about the company products and the organization itself and also likely to be highly critical of dishonesty or insincerity.

Furthermore, the strengths of corporate blog may be considered as the roadblock to starting the blog itself. 'Costs in terms of man hours' was seen as the biggest potential roadblock to starting a blog. This is because in the nature of blogs, the requirement to post a lot of comments will requires a lot of discipline to post those comments on a regular basis. Therefore, before starting a blog, it is important to develop good solid content strategies such as conducting interviews, reading other blogs, surveying your audience and employees on a regular basis and also keeping current on industry trends.

Moreover, 'Legal liability' was the next most important factor that arise the corporate blogging risk. Companies are thinking about and seeking advice from colleagues or industry bloggers that will help them to mitigate any posts that might cause liability. They are now developing corporate blogging policies based on blogger experience and legal advice. They are also tending to review the other company blogging policies which can help them to develop their own policy in order to mitigate any liability.

http://www.scoutblogging.com/2006/04/what_are_the_benefits_of_corpo.html
http://en.wikipedia.org/wiki/Corporate_blog
http://www.proceedings2008.imcsit.org/pliks/127.pdf
http://blog.precedent.co.uk/unprecedented/2008/06/16/br-blog-relation-a-new-way-of-marketing-communication/
http://money.cnn.com/2006/02/28/news/companies/pluggedin_fortune/index.htm
http://www.corporateblogging.info/2006/04/this-is-now-archive.asp

Review a local e-commerce site

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Electronic Commerce, commonly known as (electronic marketing) e-commerce or eCommerce, consists of the buying and selling of products or services over electronic systems such as the Internet and other computer network.

In today's global economy, more businesses sell products online, in more markets and in more languages, than ever before. One of the local e-commerce sites is MAS Airlines. Malaysian Airline System (MAS) brings the world to Malaysia and vice versa through its main subsidiary, Malaysia Airlines, the nation's primary international carrier. From its hub in Kuala Lumpur, Malaysia Airlines serves about 100 destinations on six continents, some via code-sharing. In fact, MAS has incorporated online booking system to its website www.malaysiaairlines.com. In other words, people can purchase flight tickets or select Holiday Packages through Malaysiaairlines.com at anytime from anywhere.





As we could see from the home page, MAS Airlines has designed its background in such a way that it makes people feel warm and friendly when first entering into the website as there are two stewardesses smiling and an attractive colorful background. In addition, customers are served with care because MAS Airlines provides different selections of languages and countries to enable customers to select their country of residence and preferred language. The page loading speed is considered very fast which about 12 milli-seconds on average. MAS Airlines has chosen Times New Roman as its text font with the font size of 12 which comforts the readers. The website is simple yet customers can easily identify the important information as MAS Airlines has highlighted them with different colors to draw customers’ attentions.



When entering into the main page, customers can easily get to know the current promotion offered by MAS Airlines as well as the highlights. Besides that, there is a search engine available for customers to search for additional information. Furthermore, it provides a section on the main page which allows customers to book a flight, holiday packages and web check-in. customers can always check the availability of flight ticket by entering some information such as the origin and desired destination, the date of departure and arrival of the flight, flexibility date, the number of flight tickets and the flight classes.

Once customers have entered the flight information, customers will be linked to another page which shows the availability of flight ticket and the total price of the ticket including tax. Before purchasing the ticket, customers could review their purchases to avoid any misunderstanding. MAS Airlines provides several ways of online payment, for example, credit cards (MasterCard or Visa), CIMBClick and MayBank2U when customers have made their final decisions. All the private information and payments made are secured using a VeriSign SSL Certificate. Later, customers will get a confirmation letter from MAS Airlines through e-mail.

On the other hand, MAS Airlines has a good navigation as it provides other related links that enable customers to check on the information for hotels, car for hire, sightseeing locations and others. Additionally, it contains information for flight e-timetable, flight status, the route map, holiday packages in Malaysia and more.




Overall, MAS Airlines’ website has delivered a clean and clear interface to its readers. The easy navigations allow customers to get the information they need about the prices of flights tickets, holiday packages or other related facts. Hence, making flight ticket reservation through MAS Airlines is easy and simple.


Related Links:

http://www.malaysiaairlines.com/my/en/home.aspx

A discussion on E-learning offered in Malaysia universities: Pros and Cons from the student’s perspective

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E-learning is the use of computer or electronic device to create, foster, deliver and facilitate learning at anytime and anywhere via the internet, intranets, audio and videotape, satellite broadcast, interactive TV and CD-ROM to provide training, educational or learning material. Basically, people use it to communication, education and training. E-learning also is a broad set of applications and processes which include web-based learning, computer-based learning, virtual classrooms, and digital. Besides that, e-learning lessons are generally designed to guide students through information or to help students perform in specific tasks. It can provides faster learning at reduced costs, increased access to learning, and clear accountability for all participants in the learning process.

Nowadays, most universities students use it as a specific mode to attend a course or programmes. It has provide its great advantages to all students which allow them to communicate with their tutors, get clarifications regarding their subjects and study and access teaching materials through e-libraries. Therefore, student’s interactions have become easier than face-to-face communication. However, e-learning have consists of some pros and cons.



Pros:
1. Time flexibility. E-learning provides access to learning materials at any time, therefore, students have flexibility to schedule around families, jobs and other activities. Moreover, students can access to the internet to get the most latest online resources, communicate with his tutor or class mates, and send his query and write term paper at any time. However, it also provides an opportunity with 24 hours available for students to fit studying into their own schedule which can be more self-motivated and disciplined. Besides that, they can make decisions about how a class should be structured and when they should do the coursework.

2. Save cost. E-learning can offer such students much easier and affordable way by allowing them to get a good education such as students can save extra expenses for traveling, accommodation, food and high fees for tutor.

3. Reduces preconceived notions based on students age, gender, race, background or level of experience. Through online discussion are allow students to receive and give feedbacks to each other and learn from different types of people with less judgment than might be found in a face-to-face situation.

4. Provide individualized attention. E-learning encourages reflective learning opportunities which are allow students have time to reflect before responding. Besides that, students can have their quiet space and time without interruptions and more concentrate or think about the readings before participating in the discussions.

5. Capability. Sometimes students need to finish their assignment within a particular period of time, therefore, they can study at their own pace whenever they are free or can finish their projects at any time that are feasible within that particular deadline.

Cons:
1. Lack of face-to-face communication. Online student settle all their tasks via internet, therefore, they will lack of face to face communication with others and caused teachers contributes lack of understanding between a student and a teacher. While a teacher cannot easily feel a student’s demands, interests and motivations.

2. Required self-discipline. When students prefer to study with their own pace or own place, it will create for students who have difficulty with time management and procrastination. Because they are always just follow their own pace.

3. Technology involved may caused some people do not have ready access to a computer and Internet connection and some who do have the required equipment feel ill-equipped to use it.

4. Scams. E-learning has increases the availability of educational opportunities. Unfortunately, it also will create the scams related to online education such as racket.

Related links:
http://www.answerbag.com/articles/Advantages--Disadvantages-of-eLearning/3f3013fa-e6c3-4052-38ae-1c9b67bfdf20
http://en.wikipedia.org/wiki/E-learning
http://derekstockley.com.au/elearning-definition.html
http://www.elearners.com/resources/elearning-faq5.asp
http://www.ecsd.net/online_courses/pros_cons.html

E-Government in Malaysia: Its implementation so far and citizen’s adoption strategies

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Many countries, including Malaysia, are implementing electronic government. It generally known as ‘e-government’. The implementation of electronic government started since the initiation of Multimedia Super Corridor (MSC) by the Malaysian Government.

E-government will improve the government operates internally as well as how it delivers services to the people of Malaysia. It seeks to improve the convenience, accessibility, and quality of interactions with citizens and businesses. Simultaneously, it will improve information flow and processes within the government, improve the speed and quality of policy development, and improve coordination and enforcement. This enabled the government to be more responsive to the needs of its citizens.

The objectives of these applications are:
• Jump start development of MSC
• Make MSC global test bed for innovative solutions
• Increase Malaysian productivity and competitiveness
• Reduce Digital Divide

Under the e-government flagship, seven main projects are identified to be the core of the e-government applications as follow:

1. Project Monitoring System (PMS)
2. Human Resource Management Information System (HRMIS)
3. Generic Office Environment (GOE)
4. Electronic Procurement (EP)
5. Electronic Services (E-Services)
6. Electronic Labor Exchange (ELX)
7. E-Syariah

However, they are four main barriers could affect Malaysia’s e-government implementation.

1. Legislative and Regulatory Barriers – in order for e-government services to gain widespread acceptance, they must have the same standing as the equivalent paper processes and ensuring the privacy and security before advancing the online e-government services.

2. Budgetary Framework – to finance seamless government services and shred infrastructure, budgetary regulations should facilitate co-operative funding mechanisms such as coordinated bids for new funds and the pooling of funds.

3. Lag Behind Technological Change – since technological developments are moving very fast, it is very difficult to anticipate future impact in detail.

4. Digital Divide Impedes the Benefits of E-Government – generally, the most disadvantaged have the lowest level of access, yet they also often have high levels of interactions with the government. If these individuals cannot access e-government services, they will lose the benefits of e-government.

Current application of E-government in Malaysia

One of the e-government projects is Electronic Services Delivery or known as e-Services. The e-Services is accessed through multi channel service delivery such as the Internet and kiosk machines.

As of now, Malaysia citizen can renew their driving license and pay their summons, or even settle their utility bill payment online. There are several websites and kiosks that have offered e-Services application. For example, Rilek services allows members of the public to access general information and information on their outstanding summons through specially touch screen infokiosks or www.rilek.com.my website. These website and kiosk allow the public to make online payment to RTD or the Police by credit card. The government also allows the public to take their driving theory tests at approved Rilek centre.

Another e-government application launched by the Internal Revenue Department (IRD) is companies online tax. By using MyKey digital signature, which was offered by MSC Trustgate, these companies are able to digitally sign their C form and submit their document electronically to IRD. MyKey is a digital signature embedded into an individual’s MyKad. It identifies and authenticates MyKad holders over the Internet, providing the ability to sign digitally a document or transaction.

Other than that, the electronic procurement system, better known as ePerolehan, streamlines government procurement activities and improves the quality of service it provides. It converts traditional procurement processes in the Government machinery to electronic procurement on the Internet and can be accessed at www.eperolehan.com.my. With ePerolehan, all suppliers can obtain tender documents and submit bids through the Internet. The suppliers are equipped with smartcards that enable them to transact with the ePerolehan system. Modules in ePerolehan system include suppliers’ registration, central contract, direct purchase, tenders and contract and have been fully functional and used by the government in its procurement exercise. With the introduction of the ePerolehan system, it is hoped that the system could streamline the processes and procedures as well as improve efficiency and productivity, while lowering the government's operational cost over time. For the suppliers, it could translate into new markets, additional revenues and higher margins. Besides that, ePerolehan also allows suppliers to present their products on the Internet, receive, manage and process purchase orders and receive payment from government agencies via the Internet.

Common problems encountered by consumers:
1. Many consumers do not know how to use the services provided or thinking that it is hard to be used as there is no manual guide which could assist them to transact over internet.

2. Many citizens in Malaysia are reluctant to transact or utilize the applications of e-Government through internet as there is risk of inaccurate data transferred, potential fraudulent, phishing, stolen of privacy data and etc

3. Do not have the accessibility over internet due to the factors such as those in rural area or poor families do not possess internet access at home.

4. Public are not aware of the e-Government services provided as there is lack of advertisements, notice and promotions regarding the services. Most of them, especially those computer illiterate still using the traditional method.

Citizen’s adoption strategies

E-government allows citizens to interact with computers to achieve objectives at any time and any location, and eliminates the necessity for physical travel to government agents sitting behind desks and windows. Hence, citizens expect and demand governmental services with a high degree of quality, quantity, and availability in a 24-hour, seven-days-a-week, and year-round fashion.

The government should increase the awareness and gain more attention from citizens in its existing services that provided in e-government. Then, e-government adoption requires that citizens show higher levels of satisfaction and security with the online services provided by the government. A higher level of customer satisfaction will increase the rate of e-Government adoption because the citizens are comfortable of the protected privacy and confidentiality of the user's information. Moreover, the service quality should be competitive with the other developed countries in terms of speed, problem serving approach, and ease of use of the website. This is important as it provides and encourages long-term users to use the website frequently and cut-off paper work when the payment process can be made through online. Lastly, the government should do more advertising through radio and television, and organizing workshop in a strategic location in order to create awareness and convenience for problem solving as they are fully focus in providing the best services to its citizens.


Related links:
• http://www.intanbk.intan.my/psimr/articles/Article1%20-%20Full.pdf
• http://www.american.edu/initeb/ym6974a/egovernment.htm#E-Government
•http://www.mait.com/admin/enews_images/MAIT%20Country%20Intelligence%20eNews96_37.pdf
• http://www.archives.go.jp/news/pdf/MrShaidin2.pdf

Electronic currency

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What is e-currency?


The first letter “E” of E-currency represent electronic in which means the currency used on the internet related field just like email and “currency” is a money system. E-currency is the money exchanged on electronically through buying and selling products and services on the Internet at lightning speed and most importantly with a high level of security. It is also known as e-money, electronic cash, electronic currency, digital money, digital cash or digital currency. Nowadays, many people prefer buying and selling online, but there are still some risks involved. The most popular example of e-currency is credit cards which is people used for online payment. There are two types of e-currency in the world which is backed by precious metal such as e-gold is backed by gold and backed by hard currency like Paypal.

However, there are several benefits of using e-currency service on the internet like e-gold and pay pal. First, we can use e-currency through the internet that is related to any commercial applications such as shopping and investment. If you cannot get away from your businesses, you can buy and make payment any item by credit card via internet. Second, sometime make payment by credit card have some risk when provide your credit card information to the merchant you do not know them very well and most of them are far away in the other side of the earth. Therefore, we can choose to use another types of e-currency services such as e-gold and pay pal which can brings people a new way not to use their credit card as the only payment method on the internet. Lastly, e-currency services such as e-gold, pay pal and EMO are provide an efficiency capability on the whole process which allow both the buyers and merchant with the convenient way to send and receive the payment just by clicking the confirm button.

Moreover, there are many types of payment methods, one of the payment methods ofe-currency is click and buy. Since 1999, click-and-Buy represent as a leading internet payment system and a quick, secure and simple solution to process the payment systems on the internet. It also is one of the trusted payment systems in the internet and has positive feedback from customers. For examples, UK customers can buy online without ever providing personal bank or card details and can top up click-and-buy account with cash at any stores. Besides that, it makes safe and convenient purchases of internet content and services and provide many benefits to customers which are secure payment, one time free online registration, convenient monthly payment through direct debit, credit card, invoice or prepaid account and provide customer service on 24 hours.



5 reasons why should get into e-currency trading

1. Liquidity
E-currency makes a superior liquidity caused more efficient price stability and better trade execution in the market. However, there are also a number of benefits to making money by trading in e-currency, otherwise, the outstanding liquidity occur in the market bring the biggest benefits and makes it convenient for the traders with trades becoming easier to open and close transactions.

2. Geographical versatility
E-currency represent as a multifunctional tools that can help people to make money on the internet when it comes to where you can trade and when you want to trade. E-currency makes it extremely convenient to anyone, as long as you have an internet connection, you can enjoy to do your business at anywhere in the world, even though enjoy traveling or if cannot get away from your business when on vacation with your family.

3. 24-hour markets
E-currency is a non-stop business at any time anywhere, as they describe e-currency like “the internet never sleeps”. Because of this benefit, you can create a schedule that suitable for your own and trade within any time zone as you needs. In respect that, there are always people trading somewhere around the world and can join each other together.

4. Low minimum investment
With e-currency trading, there is a low minimum investment opening the door to a much more diversified group of people and it costs an arm and a leg to get into certain markets on the Internet. It is also creates a lot of opportunities to make money without spending much on it.

5. Low transaction costs
E-currency considered as a low transaction costs which allow you to do business with minimal fees giving you more profit and more money for you. The only major transaction costs that have to deal with are the spread, which is the difference between the buy and sell price of each currency.


Related links:
http://en.wikipedia.org/wiki/Electronic_money
http://ecommercesite.wordpress.com/2008/06/24/electronic-currency/
http://www.swisscom.ch/res/internet/clickandbuy/index.htm

Mobile Payment Systems in Malaysia: Its potentials and consumers' adoption strategies

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Mobile payment is a new and rapidly-adopting alternative payment method. In fact, this mobile payment has been adopted well in many countries. 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 such as:


Ø Music, videos, ringtones, online game subscription or items, wallpapers and other digital goods.


Ø Transportation fare (bus, subway or train), parking meters and other services


Ø Books, magazines, tickets and other hard goods.



There is a tremendous potential for mobile telecommunication networks to become an important electronic payment channel in Malaysia considering that about100% of Malaysia’s 27 million people had a mobile telephone service by early 2009.


According to Bank Negara Malaysia Governor Tan Sri Dr Zeti Akhtar Aziz, the high penetration rate affirmed mobile phone networks as an increasingly popular channel for Malaysians to perform a plethora of activities beyond voice communication, encompassing all forms of digital communication, commerce, banking and payments. Certainly, payment via text messaging has the potential to grow in importance.


With 27 million mobile phone subscribers in Malaysia, it is believed that there are huge opportunities to leverage on mobile phones to accelerate the migration to electronic payments, to widen the reach and appeal of electronic payment services, and to deliver innovative mobile payment products that offer speed and convenience at minimal cost for the consumers. Besides that, it also provides an opportunity to enable cost-effective method of delivering financial services in the remote areas.





In addition, there is increasing attractiveness of the mobile network as a payment channel because it is a shared integrated network with common security level and common messaging standards which would make it easier to attract consumers. Furthermore, it is also more cost-effective and convenient for consumers, vendors and service providers to execute and receive payments.


With mobile payment, consumers are believed to be more comfortable with low-value transactions because it allows everyone to make payment or receive money at anytime and anywhere with just one text messaging (SMS). In fact, this helps the consumers especially when the consumers are in need of cash but they do not have any in hand, therefore, with mobile payments they do not need to withdraw money from ATM machine which is time-consuming.


As for vendors and business, they can easily do their businesses at anything from anywhere with mobile payment system. This will increase their business opportunities as mobile payment system can be done with lower maintenance cost and transaction.


In Malaysia, there are mobile payments available to citizens such as Redtone, Maxis, Digi, Maybank, Hong Leong Bank, Mobile Money International Sdn Bhd, and mobileExec Sdn Bhd.





In order to encourage consumers to adopt mobile payment system, first and for most, we must know what kind of benefits a mobile payment system can deliver to the users. The following are some of the benefits of the mobile payment system:


1. Compatibility: Compatibility captures the consistency between an innovation and the values, experiences, and needs of potential adopters.


2. Complexity: Complexity and problems with usability have contributed to the low adoption of a variety of payment systems, including smart cards and mobile banking.


3. Relative advantages of mobile payment systems: Mobile payments provide consumers with everywhere purchase possibilities, timely access to financial assets and an alternative to cash payments.


4. Payment system security and trust in payment systems providers: In a mobile environment, lack of consumer perceived security and trust in vendors and payment systems is one of the main barriers to electronic and mobile commerce transactions.


After understanding the benefits of mobile payment system, consumers would be more likely to adopt mobile payment system.




One of examples of mobile payments available in Malaysia is Mobile Money (MM 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 allows 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. To know how Mobile Money works, please click on this link




Related Links:

http://www.mobilepaymentsworld.com/

http://www.mohitagrawal.com/2009/04/mobile-payments-will-consumers-adopt.html

http://www.mobilepayment.com/

http://www.neowave.com.my/mobilemoney_overview.asp

www.mobile-money.com

The application of pre-paid cash card for consumers

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The application of pre-paid cash card for consumers


What is pre-paid cash card?

A prepaid card looks like a credit or debit card, and gives users the ability to purchase products and services with a card but with a crucial difference.


How does it work?

Firstly, consumers need to preload some money onto the card and money can be loaded by cash at a bank, Post Office, at Payzone or PayPoint terminals, bank transfer, through your employer or even by another credit card.

When using it for purchasing at a supermarket, they work in exactly the same way as a credit or debit card. You just simply hand the card to the cashier and you will be asked to enter your PIN number (supplied with the card) on an electronic keypad or to sign a payment slip so your signature can be matched with that on the back

of the card (if there is no Chip on the card). The total amount will be taken from your card immediately and the transaction is complete.

To shop online, you'll find the item you want to buy and click on to the website's "checkout" page before filling in your details and those of your prepaid card. As long as you have enough cash loaded on your card (the website checks this by the usual means of an authorisation), the purchase is completed and your item will be shipped to you.

Uses of pre-paid cash card


The usage of pre-paid cash card is considered as broad as following:

  • Buying groceries and petrol
  • As a replacement for travellers cheques or travel cash for a low cost alternative to paying for goods and services abroad
  • Topping up your mobile phone
  • Internet shopping including eBay
  • Paying bills
  • Transferring money to friends and family either in the UK or overseas (known as remittance)
  • Withdrawing cash from an ATM


Benefits of using pre-paid cash card

It is now available at thousands of retail locations and you can get cash at more than 1 million ATMs worldwide. Furthermore, consumers can only spend up to the amount of cash they have preloaded onto the card. This means there is no risk of running into debt as it has no credit or overdraft facility. It is a more convenient and safer alternative to carrying large sums of cash which means that consumers can enjoy protection against lost or stolen cards and unauthorized purchases.


Octopus application in Hong Kong

The Octopus card is a rechargeable contactless stored value smart card used to transfer electronic payments in online or offline systems in Hong Kong. It was launched in September 1997 to collect fares for the territory's mass transit system, the Octopus card system was the first contactless smart card system in the world and has since grown into a widely used payment system for virtually all public transport in Hong Kong. In the beginning, it aims to develop a simple way to pay fares on public transport in Hong Kong and then they extended their reach into simple micro payments for purchases in retail outlets and a simple way for cardholders to gain access to buildings and schools and to identify themselves.

Now, the Octopus is also used for payment at convenience

stores, supermarkets, fast-food restaurants, on-street parking meters, car parks, and other point-of-sale applications such as service stations and vending machines. Hence, it makes their life easier.


The Octopus card has been internationally recognized, winning the Chairman's Award of the World Information Technology and Services Alliance's 2006 Global IT Excellence Award for being the world's leading complex automatic fare collection and contactless smartcard payment system, and for its innovative use of technologies.


Furthermore, the Octopus card uses encryption for all airborne communication and performs mutual authentication between the card and reader based on the ISO 9798-2 three-pass mutual authentication protocol. In other words, data communications are only established when the

card and reader have mutually authenticated based on a shared secret access key. This means that the security of the Octopus card system would be jeopardized should the access key be exposed. A stolen Octopus card reader could be used with stolen Octopus software, for example, to add value (up to HK$1,000) to any Octopus card without authorization.



Types of On-Loan Octopus cards

Type

Cost and use

Child

Children aged between 3 and 11. This card is sold for HK$70 with an initial value of HK$20. Children's fares are deducted where applicable.

Student

For students attending secondary schools and universities.

Discontinued in 2005 and replaced by Personalised Octopus Card.

Adult

The standard version of the Octopus card. This card is sold for HK$150 with an initial value of HK$100. This colour is also used for the logo of Octopus Cards Limited, the operator.

Elder

Eligibility varies between different public transport companies, and even between operating routes of the same type of service—for example, 60 years of age or above for Citybus, 65 for KMB. If no elder fares are available, adult fares are deducted. This card is sold for HK$70 with an initial value of HK$20.

Personalized

The rainbow-coloured Personalised card is available on registration. This card is sold for HK$100 with an initial value of HK$30 and a handling charge of HK$20. Students may also qualify for this card at HK$90 with their pictures and names.


Touch ‘n Go for e-tailing

What is e-tailing? E-tailing is referring to the selling of retail goods on the Internet. It is synonymous with business-to-consumer (B2C) transaction. With the introduction of e-tailing, many companies are benefited from the convenience of the services. For instance, Touch ‘n Go uses contactless smartcard technology. The card looks similar to a credit card. User can continue using the card as long as it is pre-loaded with electronic cash. It 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.


We can see that it enhances the speed of paying for low value but high frequency transactions. Besides, 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.


Related links:

http://usa.visa.com/personal/cards/prepaid/index.html

http://www.moneysupermarket.com/cards/prepaid-cards-guide1.asp

http://en.wikipedia.org/wiki/Octopus_card

http://www.hong-kong-travel.org/Octopus.asp

http://www.octopuscards.com/consumer/general/global/en/aboutus.jsp

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

Credit Card Debts: Causes and Preventions

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Credit card is any card that issued by banks, savings and loans, retail stores, and other businesses that may be used repeatedly to borrow money or buy products and services on credit. It gives credit card holder protection for their purchases, allow them to shop on line, and provide a cushion in case of emergencies. Many people like to use it when they didn’t have enough cash on hands and this made the numbers of credit card debts increase until create the major problems of bankruptcies each year. This is because many people never realized of its consequences of financial and non financial perspectives.


While credit card debt is an example of unsecured consumer debt that accessed through credit cards. Debt results when consumer purchases an item or service through the card system. Debt will be accumulates and increases via interest and penalties when the consumer does not pay the credit card company for the money they have spent. And the late payment penalty itself will increase the amount of debt that the consumer has.



Factors that causes credit card debt


Poor money management is the biggest factor that causes people have accumulated many credit card debts. This is because people are not aware to conduct a monthly spending plan that planning of how much money they going to spent and also do not keep monthly bills or receipt for recording of how much money are left. They also never realized their spending on the items that are useless and do not have any value in their life. As a result, they may be overspending hundreds of dollars each month and end up having to charge purchases on which you should have spent that money. This is because people like to keep on spending with using the credit card without perceived that they are unable to pay back the debts.





Unemployment is the most common factor that causes credit card debt due to the recession of economies. Many people are losing their job and unable to maintain their living expenses, therefore they using the credit card to cover their future living expenses. For examples, households are forced to use credit card for their daily expenses purposes such as groceries and utilities in order for them to maintain their current lifestyle. This is because the main breadwinner of the household has loss his job and could not find a new job for short periods. This may lead to a rise in debt if expenses are not cutting down to cover the reduction in income.


Furthermore, people having credit card debts simply because they do not prepare any money for unexpected expenditures through saving. This is because they using credit card and like to use it for their spending and thereafter left no money to save in the bank. It sounds hardly for them to manage their saving account as they spending their money more than what they have receive. Therefore, without a savings cushion in place, a job layoff, illness or divorce will cause an immediate financial strain and increase in debt.


Moreover, credit card will become one of the sources of funds to pay off the medical expenses if health insurance is not adequate to cover the medical bills due to one of your family members suffers serious illness. This is because the medical industry wants people to make payment at the time service is rendered as they think that the chances of their getting paid will drops if people not make payment. It can be mean that your payment is their income and they prefer more debt for you, less for them. In United States, almost everyone pays their medical expenses through credit cards in order to get immediate treatment.



Prevention of credit card debt


In order to prevent people from overspendidng their budget that they previously set and prevent from debt, people have to make a clear budget and stick on it. It enable them do a realistic assessment of how much money they have take in and the money they have spend. Start by listing their income from all sources and then writing down all their expenses even those that semm insignificant (such as entertainment). It is a helpful way to track their spending pattern, identity necessary expenses and prioritize the rest.



Besides that, the best practices to prevent credit card debts is to have a better self control and discipline so that people able to pay back the full amount each month and use the credit card wisely because they have try to learn not to overspend it. People can control themselves by stop to use the credit card money if their expenses are more than their budget.


Another prevention method will be people can address the problem they face with creditors instantly to identify whether they could give revised on payment arrangement when you facing trouble on to pay off the debts. It can be mean that if the collection money from creditors is not fair, they can refer to Fair Debt Collection Practices Act to identify the debts problems. This is because creditors may approve proposal and accept modified payment plan when hiring a good credit card debt consolidation companies.



Moreover, people have to prioritize their debt repayment in order to prevent from overspendings and fall under deeper debt load. They are advisable to pay off their smaller debts in order to get rid of the highest interest payment first. They are required to list all of their credit card debts and the amount you are paying each month and then pay off the lowest amount first. This is because it will take lesser time and they will feel a sense of satisfaction when you have actually completed their goal and this will boost their confidence. Thereafter, they will use their remaining money to start paying off the second lowest debts.



Related Links:

http://www.bankrate.com/brm/news/debt/debt_manage_2004/top-10-causes.asp

http://www.mozdex.com/prevent-credit-card-debt/

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