To make online shopping safer, it is advise to make sure you have an extra level of authentication. The ‘extra’ level, is a password that you will have to enter after entering your credit/debit card details while making online payments.

This new technology is called Verified by Visa (for Visa card) or MasterCard SecureCode (for MasterCard).

Verified by Visa (VbV) is an online service designed to make Internet transactions safer by authenticating a cardholder’s identity at the time of purchase. Verified by Visa software installed at a merchant website activates the cardholder interface during the authentication process.

The goal of Verified by Visa is to create a level of consumer trust and confidence in online shopping similar to that in the physical shopping environment. It is designed to improve both cardholder and merchant confidence in Internet purchases as well as reduce disputes and fraudulent activity related to the use of Visa payment cards. As a merchant you can benefit from guaranteed payments and reduced costs associated with the most common types of Internet disputes with Verified by Visa.

Visa official website has provided animated demonstrations show how simple it is for customers to use Verified by Visa:

• Verified by Visa activation during shopping demo
• Verified by Visa enrollment demo
• Verified by Visa shopping demo

MasterCard SecureCode is a new service from MasterCard and your card issuer that provides added protection when you buy online. There is no need to get new Mastercard card. You choose your own personal MasterCard SecureCode and it is never shared with any merchant. A private codes means added protection against unauthorized use of your credit or debit card when you shop online. Every time you pay online with your MasterCard card, a box pops up from your card issuer asking you for your personal SecureCode, just like the bank does at the ATM. In seconds, your card issuer confirms it’s you and allows your purchase to be completed.

You can check out the basic demonstration provided in MasterCard official website from the link below.

How It Works Demonstration

Bear in mind that not all banks in Malaysia offering this extra security safeguard a.k.a Verified By Visa & MasterCard SecureCode. Having this extra security feature can safeguard your cards against Internet transaction fraud.

Please do enroll your cards to Verified By Visa or MasterCard SecureCode as soon as possible. Internet transaction can be happened anytime if your card number, name, expiration date and CVV number being exposed. We don’t know when this will happen and this is possible happen, especially those people with quick reading can read and memorize these information within few seconds.

List of bank in Malaysia offering Verified By Visa & MasterCard SecureCode:

(click the name of the bank to visit the bank official page for more information)

• Alliance Bank
• EON Bank
• HSBC
• MBF – Visa, MBF – MasterCard
• Hong Leong Bank
• Public Bank
• Bank Islam
• CIMB Bank
• Maybank (Maybankard Secure Online Shopping (MSOS))
• RHB Bank
• Direct Access

Don’t forget to check out this site for step by step to activate Verified By Visa & MasterCard SecureCode for most of banks listed above.
http://www.ipay88.com/my/3dsecure.asp

Lastly, make sure you know How To Prevent Credit Card Fraud.

Tawarruq is the new Shariah concepts introduced in Malaysia for the use in personal financing. The Syariah Advisory Council of Bank Negara Malaysia  in its 58th meeting held on 27th April 2006 / 28th Rabiul Awal 1427 resolved that the use of ijarah sukuk and Shariah-compliant securities as underlying asset in tawarruq or murabahah to manage liquidity in Islamic financial system is permissible.

Syariah concept personal financing works in different way compare to conventional personal loan. As Islam prohibit taking interest, customer which require financing from bank will buy goods or commodity on credit from the bank on a installment payment basis and then immediately resells it to third party for cash. In this way, the customer can obtain cash without taking an interest-based loan.

The flow chart below illustrate the detailed flow of personal financing, including the bank profit calculation. The information provided below was referenced to Bank Islam site.

1. The customer applies financing product based on Tawarruq concept from the Bank. Bank obtains Tawarruq transaction documents from the customer.
2. Bank will buy the commodity at London Metal Exchange (LME) through Broker 1.
3. Under the Murabahah contract, Bank then sells the commodity to the customer at Bank’s Selling Price (Principle + Profit) on deferred payment term.
4. Under the Wakalah contract, customer requests Bank to sell the commodity in the market.
5. Acting as the appointed sale agent for the customer, Bank sells the commodity to Broker 2.
6. Bank then credits the Wariq (proceed) from the sale of commodity to the customer’s account.
7. Finally, customer pays amount due to the Bank (Principal + Profit) by way of agreed instalment method.

Key note of the Shariah based personal financing:

• The montly installment is fixed and calculated based on the bank profit rate and the financing tenure. Early settle of the personal financing will no have any rebate or with minimal rebate, which vary from bank to bank.
• No interest will be charged for late payment. Bank will take legal action if failed to make three consecutive installment payment.

Looking for personal financing which offer great saving? Here is the good promotion that you can’t missed it.

Bank Islam is launching the “EXTRA BAG ANZA” Personal Financing-i Campaign with these benefits:

• Financing Rate from 4.1% per annum (valid for first 3 years only).
• For female customer: 20 designer handbags worth RM5,000 each is giving away to selected female customers, for every three months.
• For male customer: Umrah or holiday packages worth RM6,000
• Designer handbags include these brands: Chloe, Salvatore Ferragamo, Jimmy Choo and others.
• No guarantor
• No hidden charges
• Financing tenure up to 15 years.
• Based on Shariah Concept

General Terms & Condition:

• Applicable for financing amount of RM30,000 and above.
• Valid until 30th Jun 2010.
• Other terms and conditions apply.
• Valid for employee in Government Sector, Government Sector, Subsidiaries of Government or Public Listed Company

For promotion brochure, please visit:

http://www.bankislam.com.my/bimb_pdf/PFEBA_Poster.pdf

Contact & Website:

http://www.bankislam.com.my –       03-26 900 900

Check out how the Shariah compliant Personal financing works here.