Prepared for: SHAMSUL BAHARIN SAIHANI Prepared by: Salmi binti Ibrahim ( ) Zunainah binti Abd Aziz ( )

Payment Systems  Emergence of e-commerce has created new financial needs cannot be fulfilled by traditional payment system Example ○ Auctions between customers require a peer-to-peer payment method via ○ Some types of online products require micropayments where price of merchandise is very small (RM 1.99 for a ring tone, and RM 4.99 monthly subscription fee to get daily information of commodity prices)

Types of Traditional Payment Systems Cash - is defined as coin and currency (paper money) but not redeemable online Foreign Currency – similar like cash but needs to be converted first before payment can be made

Personal Cheque - A cheque is an order authorizing the transfer of money from one account to another; it is not a token that represents value, as cash does. Unlike USA, you cannot apply personal cheque to online purchases in Malaysia. See how pay by cheque online works in USA

Credit card - is a financial instrument, which can be used more than once to borrow money or buy products and services on credit. ○ Example: maybank, cimb etc Gift certificate/voucher - they are essentially prepaid certificates with a certain amount of money added to that certificate. Gift certificates come in several forms ○ Example: plastic card form, paper form, or electronic form.

Stored value - represents money on deposit with the issuer, and is similar to a debit card. One major difference between stored value cards and debit cards is that debit cards are usually issued in the name of individual account holders, while stored value cards are usually anonymous. ○ EXAMPLE: pay-pal