A smart card is similar to a magnetic stripe card but contains a microprocessor chip. The first smart cards were prepaid telephone cards, which operated on stored prepaid values. They have moved on from this to be used for things such as library cards, credit cards, student cards, and electronic purses.

Today, there are three smart card types with different access methodologies.

Contact cards
With a contact smart card, the user inserts it into a reader in order to access the information on it. The data is then transferred once physical contact is made. The reader supplies power to the chip in the card through the contacts. These cards are used in financial applications such as store-value, debit, and credit cards because of their reliability and the high power available to the microchip processor. Contact cards are slower and require more servicing than contactless cards.

Contactless cards
Contactless cards communicate with the card reader using radio frequency technology. They are implanted with a radio antenna. No physical contact is required with the reader. Contactless smart cards are suitable for application in fast paced transactions. Proximity, close-coupled, and vicinity cards are sub-types of contactless cards. Vicinity cards are used in industrial tagging, car-park access, and library book tagging. Contactless cards cannot support encryption techniques and are expensive to manufacture.

Hybrid or combi cards
Hybrid or combi cards combine elements of contact and contactless cards. This is done in three different ways. Firstly, there is a hybrid card that has two chips. Each chip has either a contact or contactless interface. This method offers high security but is expensive to produce. The combi card has one chip, but with a contact and contactless interface. The combi card is cheaper than the hybrid card. There is a third type that uses an RF sleeve with an inbuilt antenna. This enables the card to contact the reader, thus making a contact card into a contactless one. This card type has low security.

Focus on Mondex
Mondex is a contact smart card that holds the equivalent of cash. It is an electronic purse. A Mondex card behaves exactly like cash and unlike other payment cards requires no signature, PIN, or transaction authorization. Cash is stored on an integrated circuit (IC) on the smart card. Cash can be securely transferred from one IC to another. Value is stored in a purse in the IC. The Application Carrier Device (ACD) holds the Mondex purse application. In a Mondex payment, value is transferred from one purse to another. Mondex transactions take place by inserting the card into a card reader.

Mondex cards offer a low cost, secure solution to unattended point of sale transactions, for example in parking meters or reality television voting. It is reliable and secure because no cash needs to be stored, low value transactions are efficient, and the Mondex cards are available to the majority of consumers. Mondex has been applied to different markets. For example, it is used in company cafeterias, where employees pay for meals using value on their Mondex cards. A Mondex card can hold a variety of currencies and be used in the respective countries. In Norway, the national lottery company and post office jointly offer Mondex card holders online gaming with winnings paid directly to customer’s cards.

Electronic Funds Transfer (EFT)

EFT operates on the basis of two systems. Both systems do not always occur at the same time or in the same place.

Clearing house system.

The clearing house system is where transactions between members of a clearing channel are recorded. The Clearing House Interbank Payment System (CHIPS) is an example of a clearing house.

Settlement
Settlement is the transferring of funds from a payer’s account to a payee’s account. This can only occur between banks. The central bank of each country usually acts as the primary settlement agent. Settlement can occur immediately on a gross basis or be delayed on a net basis.
Fedwire, CHIPS, and ACH are examples of EFT methods employed in the US.

Fedwire
Fedwire is a real-time gross settlement (RTGS) system guaranteed by the Federal Reserve of the US. More than 11,000 members are linked by online terminal, host-to-host computers, and other technology. It is the main payment system used for high value US payments.

Fedwire offers same day value, no settlement risk, finality, guaranteed payment, speed, and security. The only drawbacks are the cost, limited linkage, and restriction of transactions to credits.

In a typical Fedwire transaction between company A and company B, company B sends an invoice to company A, which sends a payment instruction to their bank (bank A). Bank A debits company A and sends a payment message to the Federal Reserve. The Federal Reserve debits bank A and credits bank B. Bank B credits company B’s account and sends the credit advice to company B.

CHIPS
CHIPS is an RTGS system. It is a computerized telecommunications network owned by New York Automated Clearing House. It links 56 banks, both domestic and foreign, that have offices in New York City. Payments on this system are generally international US dollar payments between countries. These payments include interbank movements, Eurodollar payments, and the settling of foreign exchange transactions.

The system supports the growing e-commerce needs of the business community through the use of Extensible Markup Language (XML). CHIPS offers same day value, minimal settlement risk, finality, speed, security, and the ability to transmit up to 9000 characters of data. The disadvantages are the high cost, its restriction to credit transactions, and the limitations of direct membership.

ACH
Automated Clearing House (ACH) system was developed as a means for transferring funds, at low cost and in high volume, between US domestic accounts. It is an alternative to checks. The National Automated Clearing House Association (NACHA) was established in 1974. It forms a link between regions for the ACHs and provides a nationwide electronic payment and collection network among US financial institutions. It offers a number of formats for ACH transactions.

The system can be used for debit and credit transactions. ACH credit transactions include payroll, pension, and annuity payments. ACH debit transactions include consumer bill payments, such as utility bills, phone bills, and insurance premiums.

ACH is cost effective, reliable, efficient, deals with both debits and credits, uses batch processing, has accelerated inflows, allows for processing of large amounts of information, and is more secure than paper transactions. The major disadvantages of the system are the delay in settlement, lack of guaranteed finality, start-up and on-going costs, and concerns over debit transactions.

SWIFT
The Society for Worldwide Interbank Financial Telecommunications (SWIFT) is a global telecommunications network. It provides a strict message format for the exchange of financial information between financial institutions. Messages automatically pass through electronic links built between SWIFT and the local electronic clearing systems in different countries.

More recently, SWIFT has been applied to the transferring of the entire letter of credit process onto the Internet and providing Web-based functionality for business-to-business (B2B) transactions with SWIFTNet.

Payment system risks
There are payment system risks involved in the EFT systems. The daylight overdraft (when an account is overdrawn at the Federal Bank) is of concern to the Federal Reserve Bank. They have introduced charges curbing the limit a bank is overdrawn in any one day to address this risk. The second big risk was the delay in settlement in the ACH system. ACH has now introduced “ACH settlement day finality” to lower the risk.

eChecks

An eCheck is an electronic representation of a paper check. An eCheck uses public key cryptographic signatures and secure messaging over the Internet to make payments and perform other financial functions. They function using the same mechanisms as paper checks, but in an electronic format.

eCheck transactions take place in the following way:

• the payer “writes” the eCheck and “gives” the eCheck to the payee electronically
• the payee “deposits” the eCheck, receives credit, and the payee’s bank “clears” the eCheck to the paying bank.
• the paying bank validates the eCheck and then “charges” the check writer’s account for the check

eChecks offer safe bank transactions on the Internet, unlimited information carrying capacity, reduced fraud risk, and automatic verification of content and validity.

The eBill system is powered by eChecks. eBills are a paperless form of bill that are accessed on the Internet rather than delivered by traditional mail. eBills contain the exact same information as paper bills. Customers set up an eBill account with a website from which they can view, pay, and track the history of all bill payments. The system allows customers to set up recurring payments and reminders and guarantees payment direct from the account of their selection.

Mobile payments

A mobile payment is where two parties exchange financial value by means of a mobile device in return for goods or services. Mobile technologies include 2.5 and 3G data networks, and the Bluetooth, infrared, and radio frequency identification (RFID) wireless protocols. All mobile payments should be secure, interoperable, and easy to use.

Examples of where mobile purchases could be used effectively are

• mobile top-ups
• online shopping
• road-tolls
• fast-food drive-through
• service stations
• images or games

Mobile payments can be either Over the Air (OTA) or across wide-area networks (WAN). OTA payments usually operate on a browser-based transfer infrastructure, such as SMS or multimedia messaging (MMS). WAN uses a wireless network and proximity payments that transfer information over short distances. Proximity payments can be made using various technologies including Bluetooth, infrared, RFID, and contactless chips.

The mobile payment life cycle typically involves the following four phases. In phase one, the mobile payment mechanism is configured. This might be the installation of a payment device, such as a mobile wallet, on a mobile device. Phase two is the initiation of the payment by the consumer. Phase three is the authentication of the user, and phase four is the completion of the payment. This life cycle is similar to a typical credit card transaction.
Summary

Proximity payment systems

Proximity payments are transactions that are conducted without having to manually swipe a card through a point-of-sale device. The user must be within a specified range of the wireless-reading device. (This range depends on the device – it could be anything between 2 centimeters and 20 meters.) With proximity payments, unlike mobile commerce transactions, payment details are not sent over the Internet.

Future developments could mean proximity payments will no longer be confined to cards. A chip with the cardholder’s details could reside in a mobile device, and transactions could be beamed using RF (radio frequency) technology, infrared, or Bluetooth. A number of wireless technologies are used for proximity payment. These include the following:

• Bluetooth
• Contactless smart cards and dual interface cards
• Infrared
• Radio frequency identification (RFID)

Bluetooth

Bluetooth is a wireless radio frequency (RF) standard that sends wireless signals (on a 2.45 GHz ISM band) between devices equipped with a Bluetooth chip. Bluetooth devices typically communicate at distances of up to 10 meters, but can communicate over distances of up to 80 meters. Bluetooth is an open standard that has been adopted by a number of major technology companies such as Ericsson, IBM, Microsoft, and Nokia and is commonly used in laptop computers, cellular phones, and personal data assistants (PDAs). Bluetooth can transmit data over long distances, but this increases the risk of payment information being intercepted. At the moment, there are no standards that cover the transmission of payment over Bluetooth.

Contactless smart cards and dual interface cards

Contactless smart cards are based on the ISO/EC 144443 standard and are commonly used in transit programs and payment cards. They are designed to communicate with devices within 10 centimeters. Dual interface cards have both a contactless chip and a contact chip, which means that different payment applications can be combined on the one card.

Infrared

Infrared is one of the oldest and most popular wireless technologies. It is commonly used in TVs and stereos. Communicating infrared devices must have a line of sight and typically send information over short distances (20 to 30 centimeters). Infrared devices can send information up to 2 meters away, but transmitting over such distances requires considerably more power. Infrared is relatively inexpensive to install in devices. It is also perceived as an ideal technology for transmitting payment information from consumer devices as line-of-sight restrictions means the parties involved can be reassured the information is not being intercepted.

Radio frequency identification (RFID)

Radio frequency identification (RFID) technology uses electronic tags to attach a unique ID to each application. There are two types of RFID technologies – low-frequency RF and ultra-high-frequency RF:

• Low frequency RF operates at less than 300 KHz and allows only a small amount of data to be transferred between devices. It is used for applications such as gas-station payment systems. Low frequency RF has not been widely adopted as a medium of payment because of security concerns and the absence of standards governing the technology.
• Ultra-high-frequency RF operates at between 902 to 928 MHz and has a range of up to 10 meters. It is in widespread use, most
  commonly in road tolling applications. A transponder located in the windshield of the car sends a signal to a reader in the toll booth
  containing the driver’s name and other basic information. RFID is not used in global payment environments as there are currently no
  standards governing its usage, and the relatively large communication distances involved have raised concerns about security.

This Ebay talk are almost similar with the previous MIRC ICT, and the same good deal they offer, Free Ebay Consultation, just have some update on the promotion code which is “MIRC1“, just access www.chiica.com/ebay to register it, you will entitle free consultation from ebay’s expertise

During this seminar, they show a special short video, which related with Ebay, and I found this very interesting and funny.

I also found this song at JennyHow.com, and the lyric are obtain from there, just a credit to Jenny How If you would like to have more video, my have a look at another 12 related ebay funny video at JennyHow.com
A used … pink bathrobe
A rare … mint snowglobe
A Smurf … TV tray
I bought on eBayMy house … is filled with this crap
Shows up in bubble wrap
Most every day
What I bought on eBayTell me why (I need another pet rock)
Tell me why (I got that Alf alarm clock)
Tell me why (I bid on Shatner’s old toupee)
They had it on eBayI’ll buy … your knick-knack
Just check … my feedback
“A++!” they all say
They love me on eBayGonna buy (a slightly-damaged golf bag)
Gonna buy (some Beanie Babies, new with tag)
(From some guy) I’ve never met in Norway
Found him on eBay

I am the type who is liable to snipe you
With two seconds left to go, whoa
Got Paypal or Visa, what ever’ll please
As long as I’ve got the dough

I’ll buy … your tchotchkes
Sell me … your watch, please
I’ll buy (I’ll buy, I’ll buy, I’ll buy …)
I’m highest bidder now

(Junk keeps arriving in the mail)
(From that worldwide garage sale) (Dukes Of Hazzard ashtray)
(Hey! A Dukes Of Hazzard ashtray)
Oh yeah … (I bought it on eBay)

Wanna buy (a PacMan Fever lunchbox)
Wanna buy (a case off vintage tube socks)
Wanna buy (a Kleenex used by Dr. Dre, Dr. Dre)
(Found it on eBay)

Wanna buy (that Farrah Fawcett poster)
(Pez dispensers and a toaster)
(Don’t know why … the kind of stuff you’d throw away)
(I’ll buy on eBay)

What I bought on eBay……..

When talking about E-Commerce, there are a lot of gurus out there. For blogger, I know there are 2 blogger that very pro in this field, Jenny How, full time eBay seller and Kaiwah, an E-Commerce lecturer. There are quite some interesting e-commerce topic in their blog.

For the above information, you just need to logon to www.ebay.com/onramp and submit your contact to Ebay, some one from Ebay will contact you and guide your step by step to become a seller on Ebay.

I am going to try it out soon, because I wish to become a Ebay seller and earn some extra cash too.

Don’t Miss out this FREE service!!!

I browse thought the online store and found few interesting gatget, one is Hand Pressing Flash Light and another is Lighting earnpick, i also bought 2 unit on both item, the next day (friday) already arrive.

Hand Pressing Flash Light

This item was not bad, it cost me RM6, no need battery, is some thing like dinamo flash light, i have tested yesterday night, the flash light open 2 hour continous was no problem, and after the light goes blur, i need to press it in and out for 5 min, then the light goes bright again.

My 2 cent :
It is make from China, in this device, it have a item(so call rechargable battery) that able to store electrict, i not sure how long it can last.

Lighting Earpick

This device are suitable for parent, to help their chirldren clean ear wax, it is using AAA size battery, should be able to last long

My2 cent:
I just buy for fun, my be can as gift for those “new” parent, or may be for my son in future……hehe

I bought both of this item from Kemen Marketing, this is their online store, fast delivery and respond, hope can deal with them soon.

Advantage for Business Man
Let say Malaysia Ringgit, last time malaysian need to pay RM3.80 for 1USD product, now after depreciate of USD, they only pay RM3.40 for 1USD product, save RM0.40 each 1USD.

Disadvantage for USD keeper
I still remember few year back, 1 of my friend, Mr.B, he plan is go Korea alone for 2 week trip, he ask me accompany him, carry RM20,000 to money changer at sg.Wang plaza, Kuala Lumpur. Each oh us average carry RM10,000. The exchange rate is RM3.8:1USD, so we have change approx. 5263USD.

He flight there only 3 day and wanna to come back already, because too boring to travel alone, he spend less then 1000USD there. He still keep the USD until now. lets say he left 4000USD, current rate is RM3.40:1USD, he still left RM13600 (before depreciation is RM15200) loss RM1600

Disadvantage for me
2week back, when i purchase some stuff online and pay by my credit card with google checkout,  charge RM34.30, but there was no stock, so refund; when i check my statement, it show refund RM33.44 , loss almost 1 buck. Click the below picture to enlarge.

Other then this, as a blogger, most of us who earn money online are USD, the depreciation also bring harm to us… Bloggers! am i right?…

vs

Credit card bring harm?
Credit card, see like very useful in the movie. Taking money out from pocket or wallet seen like out dated. According to the research, a lot of people now a days owing credit card, some of the country declare their resident owing credit until get sue by bank and bankrupt. Does credit card bring harm to us?… i don’t think so.

Pay Pal need Credit Card to verify
Last year, around end of October to the beginning of November, i purchase Pay Pal fund from a person at lowyat.net, his name is “LokGP”. This person is recommend by once of my class mate – CYC ; after few private message(PM) with LokGp on all the detail, the rate was 1:3.5 , i immediate bank in RM28 to his account, less then 2 days, he transfer Pay Pal fund USD8 for me…Damm, i cant accept the Pal Pal fund. Immediate I PM him and post my problem at forum, i found that to accept Pay Pal Fund, i must have a credit card to verify my Pay Pal account.

Public Bank’s Debit Card
After the research, i found that Debit card also can be use. so i went to apply a Debit card from Public bank, it took around 3 week time to process, i have to make a deposit of RM25 and cost me few buck of sampling  fees. It is more safety then Credit Card, why?… u can just make a deposit on any amount u want, if the card get use by other, the Maximum loss also the amount in the Card. that is the benefit of Debit Card, no future money in site. Some more have 0.5% of bonus for every ringgit you spend.

So apply once and enjoy feeling on Swapping Credit Card!!! hi hi… the feeling are nice, when i use it for my 1st purchase, feel like no need spend a single cent and able to get the stuff with just a swap. I think this feeling are killing a lot people, bring a lot debt to them.

Here is some information on Public Bank Debit Card Remember, don’nt simply spend money. “Rich come from think infinity instead of think twice before you spend a single cent”