E-Commerce

Mobile payment is the collection of money from a consumer via a mobile device such as their mobile phone, Smartphone, Personal Digital Assistant (PDA) or any devices. Mobile payment known as mobile web payment or WAP billing.

A credit card is part of a system of payments named after the small plastic card issued to users of the system. It is a card entitling its holder to buy goods and services based on the holders promise to pay for these goods and services. The issuer of the card grants a line of credit to the consumer or the user from which the user can borrow money for payment to a merchant or as a cash advance to the user. A credit card is different from a charge card, where a charge card requires the balance to be paid in full each month. In contrast, credit cards allow the consumers to 'revolve' their balance, at the cost of having interest charged. Most credit cards are issued by local banks or credit unions, and are the same shape and size as specified by the ISO 7810 standard.

Credit cards, when used properly, are convenient and a great budgeting tool. If abused, though, credit cards can be the start of a years-long nightmare and unbelievable stress. Nowadays, most households and even students have credit cards. Below are the causes and prevention of credit card debt:

1) Less Income, More Expenses

Nowadays, people like to spend a lot due to attractive advertisement and lack of self control. The problem is most of them are less income especially economic downturn recently. It so happens that the main breadwinner of the household loses his job but monthly expenses are not cut down in line with the reduction in income. This obviously leads to a rise in debt. The family is forced to use their credit cards for groceries, utilities, etc.

2) Saving little or not at all

Majority people are lacking finance management plan. Some of them save little or not even save before. They just use their money they had earned. You should save for at least 4-6 months of living expenses in case an unfortunate tragedy happens. For example, if you lose your job on June 1st, you shall have enough money to maintain your current lifestyle till December 1st of that year. Until December 1st, you can find yourself new employment or open your own business. 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)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.

4) Poor Money Management

Poor money management is one of the best reasons why so many families accumulate lots of debt. Not having a monthly spending plan and not keeping track of your monthly bills makes you unaware of where your money is going. You might be spending hundreds of dollars every month towards items that are useless and have no value in your life, yet you do not realize it. While your money is going towards purchasing useless items, you might also be charging your necessary purchases on your credit card, forcing you to pay interest on these purchases every month. To read more about creating a household budget to reduce debt, read the articles on Do It Yourself Debt Reduction.

5) Hoping to win the lottery

Most people hope to win the lottery but the chances of that happening are 0%. Do not spend tomorrow's saved money today just because you expect a promotion in your job or are expecting an inheritance from a deceased grandfather. We all know life is unfair and things can go wrong more easily than going right.

6) 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. Forget about driving a BMW if you are working only 30 hours a week at the Home Depot making minimum wage. However, if you are a Financial Controller with a local Corp, then you should think about driving a BMW.

7) Big medical expenses

The cost of obtaining cures and medicine in our country is increasing every year. Government is cutting down healthcare spending every single year. Almost all doctors accept credit cards in this day and age. 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.

8) Financial Ignorance

Important topics such as saving and investing your personal finances are not taught in school. It's on you to learn to save for a rainy day, as well as manage your money so you can own a house over the longer term.

9) Non Financial Communication

Communicate your current financial health with your spouse and your children and make them aware that if you cannot afford a certain item, they should not ask for it. For example, if your 18 year old son wants a new nice hot sports car, communicate to him that you cannot afford it. Instead, he should go for a smaller car that gets him from Point A to B. You and your spouse should promise to each other that you will not hide your spending habits. One of the most common reasons why so many couples undergo divorce is because they rack up huge credit card debts without the other spouse's knowledge. This then leads to divorce which can help in racking up even more debt.

Many people put not only their own disposable income on the line when gambling, they also borrow loans to gamble! You see, Casinos would not exist if every one person won money in it. Probably 1 in every 100 people wins money in the casino over the long term. Another huge boom in the gambling industry is the emergence of Party Poker and online gambling websites that are illegal. Online gambling is so easy that you don't even have to step out of your house, you can do it right in your bedroom with a small PC!

Preventions

Avoiding credit card debt is a priority for those who seek to maintain solvency.

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

2. If you can afford it, 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.

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. This will boost your confidence and make it easier to tackle the higher balances.

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.

References:

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

http://ezinearticles.com/?Why-Credit-Card-Abuse-Causes-So-Much-Debt&id=1018899

http://video.google.com/videosearch?hl=en&client=firefox-a&channel=s&rls=org.mozilla:en-US:official&q=credit+card+debt+prevention&um=1&ie=UTF-8&sa=X&oi=video_result_group&resnum=4&ct=title#

Real physical cash, used in everyday transactions, is totally anonymous. The buyer or seller in any transaction does not have to exchange details, the transactions are instant & completed in real time and finally the exchange is not reversible.

For any cash transaction, it is either the sender/buyer’s or receiver/seller’s responsibility to disclose material facts about each other and the transaction. No outside record of the transaction is kept unless disclosed by the buyer, seller or third party privy to the transaction details. Additionally, the source of funds for any cash transaction is not disclosed.

With the creation and evolution of the Internet, users around the globe demanded ‘Electronic Currency’. After all, how does anyone pay for a purchase online? So, there are a few popular examples of Electronic Currency.

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Electronic currency is also known as electronic money, electronic cash, digital money, digital cash or digital currency. It refers to the money or scrip exchanged electronically through the use of computer networks, the internet and digital stored valued systems.

Electronic Currency has the same distinguishing characteristics as a cash transaction but it is accomplished online. Using electronic currency, you can transfer funds to anyone, in any country at anytime. It’s just like cash.

There are several consistent characteristics which define “Electronic Currency”.

1) Real Time, Not Reversible

The transfer is instant and ‘real time’ plus the transaction cannot be reversed. For instant, the receiver of your online digital currency transaction is your daughter. Since she knows you, she can voluntarily send it back if she chooses, but once the transaction is completed you as the sender cannot reverse it. All cash sales are final and that goes for digital currency also.

2) Private, Anonymous

The transfer of digital currency is private and anonymous for the sender and receiver. Generally, the account titles shown during transactions are numbers, nick names or e-mail addresses. You can usually specify your actual name if you like but most accounts are titled something like “Advertising Payments” or “Jane’s Account”.

Additionally, just like actual cash, the source of the funds is never disclosed to the receiver. No one knows where the actual money is coming from and nor does either party have an name, address or phone number.

• Advantages of Electronic Currency Payment Systems

i) Confidentiality or Privacy

One of the most attractive features of electronic currency is that, unlike real cash, it is anonymous. That is, when an electronic currency amount is sent from a customer to a merchant, there is no way to obtain information about the customer. This is one significant difference between electronic currency and credit card systems. Unlike credit card companies that collect a customer's spending habits and sell this data to third parties, the bank will have no record of the customer involved in the electronic currency transaction. Thus, by using electronic currency, the bank is unable to obtain personal information about the consumer. Therefore, this adequately protects the privacy rights of the customer.

ii) Security
The security of electronic currency is provided by the use of encryption. Many commentators point out that the manufacturers of cryptographic technology will eliminate all risks of code breaking by developing longer keys. Additionally, the enacted digital signature statutes require a certification authority to use a trustworthy system. Therefore, even though there is speculation about the security of the Internet, electronic currency consumers are probably more secure in their transactions than the more traditional ways of doing business.

• Disadvantages of Electronic Currency Payment Systems

i) Fraud
A major disadvantage to electronic currency is fraud. If a consumer somehow misplaces his private key and a perpetrator uses it to withdraw funds, the bank would never know and the consumer would be liable. Credit cards on the other hand, limit the consumer's liability for unauthorized activity. Additionally, if the security code is broken and the message is intercepted, the hacker will be able to perpetrate fraud on the recipient of the message.

However, if either of these scenarios occurs, the consumer is protected by the Computer Fraud and Abuse Act. In addition, due to the advanced technology, the likelihood that these scenarios would occur is far less than the unauthorized use of a credit card. Thus, although fraud is a potential drawback of electronic currency, this risk is no greater than the traditional forms of payment.

ii) Peer-to-peer double spending
Double spending of digital coins is another potential disadvantage of electronic currency. However, this is only a potential drawback if the consumer chooses a peer-to-peer transaction. In all other transactions in the electronic currency system, the bank is able to check the serial number of each coin in a transaction against its database of spent coins, and if the coin has been spent, the transaction will be denied.

Therefore, the consumer has a choice of whether to include an intermediary (bank) in the transaction. If the consumer chooses not to include an intermediary, and then the coins are intercepted or sent to the wrong recipient, the consumer has no recourse. However, if the consumer included the intermediary, the bank checks the coins for double spending thereby protecting the consumer. Thus, the potential for the double spending of coins is only a drawback if the consumer chooses to bear the risk of the transaction.

After evaluating the risks and benefits of electronic currency, this system has a great opportunity to transform today's economic world. The electronic currency systems presently in operation provide greater privacy and security than most present forms of payment. Furthermore, the risks involved with these transactions are risks that the consumer chooses to bear. The remedies for potential fraud and double spending have already been accounted for in the systems presently in operation. Therefore, combined with speed of transaction and the availability to the consumer, the privacy and security aspects of electronic currency far outweigh the potential risks.

Hence, once the electronic currency industry is able to ensure consumers that these transactions are secure and trustworthy, it will change the way we conduct our daily lives.

Here are some links where you guys can view for more information ^^ :

http://projects.exeter.ac.uk/RDavies/arian/emoney.html

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

http://www.ecom.jp/ecom_e/qecom/demo/elemoney.htm