Credit Card Merchant Services - What Should I Be Looking For?
By [http://ezinearticles.com/?expert=Mike_Singh]Mike Singh
Credit card merchant services come in many different varieties and are available to provide many different services for you. These services include accepting credit cards, bank transfers and debit cards. Merchant services also can help you pay industries a lot quicker than normal. These services can also help you feel much more secure and make paying bills a lot easier and convenient. Privacy is a priority and personal information should be pretty safe when it comes to these services.
Businesses can also benefit greatly from credit card merchant services. These services can allow businesses to more easily accept payments and stop turning away customers because of a lack of cash. This can only help your business by allowing you to reach a wider customer base. A great part of a lot of services is that it is easy to stop and start whenever you want and there are usually no fees or cancellation fees either.
Credit card merchant services are also one of the very best ways to be paid for any service an individual may provide as well. This is because there is none to very little risk involved with it. This eliminates checks bouncing or fees being charged because of it. Your customer base will also expand as well because you can accept customers who do not have cash but only have a debit or credit card available to them for payment or you will be able to accept these payments over the phone if you like.
Merchant services only takes a few minutes and very little effort to start it up. Because of this in just minutes you can bill via email and get paid online. Your money will be available instantly or pretty close in most instances. This can only make your business thrive even better with faster and more convenient payment options available through card services.
One huge benefit of using credit card merchant services is increasing sales. Because you have been better equipped to handle more business you will have more customers and therefore more sales. This in turn can only help your business grow in size and profits. Not only this but you will find that card services can also help secure the finances of your business as well.
After seeing all the benefits of merchant support there seems to be no reason not to try it. Having more customers, more options available to them to make payments, more ease and convenience in online business and increases in profits are all great incentives to get on board with merchant support.
Check out http://www.my-credit-center.com/ for more articles on [http://www.my-credit-center.com/accepting_credit_cards_payments_for_offline_businesses.html]business credit card with reward and low intrest credit cards.
Article Source: http://EzineArticles.com/?expert=Mike_Singh http://EzineArticles.com/?Credit-Card-Merchant-Services---What-Should-I-Be-Looking-For?&id=284478
Tuesday, August 7, 2007
Tuesday, July 31, 2007
Credit Card Machines 802 Home
A Credit-Free Card: What Is A Prepaid Credit Card?
By David Riewe
In this high-tech era of computers and machines, the purchasing
power of people is mostly based on credit. Nowadays, credit
cards are almost indispensable in almost any business
transaction. For one, nobody can purchase anything online
without a credit card.
People who have a poor credit history though, will have a hard
time getting or renewing their credit cards. This is where
prepaid credit becomes useful.
There are lenders that offer prepaid MasterCards and/or prepaid
Visa Cards. Both these cards can be used like a regular credit
card. It is even hard to distinguish which card is prepaid or
not, by simply looking at it or even using it.
This is basically how prepaid credit cards work. When an
account is opened, the card should be “pre-loaded” with cash
up-front. This is like paying for a pre-paid calling card.
Prepaid MasterCards or Visas can be used anywhere as long as
these cards are accepted.
The prepaid credit card advantage:
1. Prepaid credit card can be easily obtained. It can be
purchased online or in local retail stores. It does not require
any credit check or proof of income.
The only thing to do is to fill out an application, pay a small
fee for setting-up the account and load the card with cash. The
amount of cash loaded will be the “credit limit”
2. No interest charges.
When a prepaid MasterCard or prepaid Visa is used, there is no
interest charge unlike the regular credit card. The reason for
this is that the money used is the owner’s actual money
therefore no interest is needed.
3. Prepaid credit cards are free from financial or credit
problems.
4. Prepaid cards can be used almost anywhere. Prepaid
MasterCards and Visa cards are almost accepted anywhere in the
world.
Disadvantages of Prepaid Credit Cards:
1. Usually a set-up fee of 5 to 50 dollars is needed when an
account is opened. Then another fee of $5 or more is paid every
time more money is loaded onto the card.
Regular credit cards usually do not charge a set-up fee or
annual fees.
2. Cash up front is needed before any purchase could be made
with the prepaid card.
This could be an advantage since compulsive spending can be
avoided.
3. There are some prepaid credit cards that cannot be used to
pay regular payments such as monthly electric consumption or
online services.
The Conclusion:
The prepaid credit card is a definite help for people who have
past credit problems. It is just a matter of choosing the right
prepaid credit card that suits ones’ needs.
About the Author: David Riewe is a Publisher and Online
Marketer. Visit his Credit Resources Blog Below:
http://www.push-button-online-income.com/creditcards/
Source: http://www.isnare.com
By David Riewe
In this high-tech era of computers and machines, the purchasing
power of people is mostly based on credit. Nowadays, credit
cards are almost indispensable in almost any business
transaction. For one, nobody can purchase anything online
without a credit card.
People who have a poor credit history though, will have a hard
time getting or renewing their credit cards. This is where
prepaid credit becomes useful.
There are lenders that offer prepaid MasterCards and/or prepaid
Visa Cards. Both these cards can be used like a regular credit
card. It is even hard to distinguish which card is prepaid or
not, by simply looking at it or even using it.
This is basically how prepaid credit cards work. When an
account is opened, the card should be “pre-loaded” with cash
up-front. This is like paying for a pre-paid calling card.
Prepaid MasterCards or Visas can be used anywhere as long as
these cards are accepted.
The prepaid credit card advantage:
1. Prepaid credit card can be easily obtained. It can be
purchased online or in local retail stores. It does not require
any credit check or proof of income.
The only thing to do is to fill out an application, pay a small
fee for setting-up the account and load the card with cash. The
amount of cash loaded will be the “credit limit”
2. No interest charges.
When a prepaid MasterCard or prepaid Visa is used, there is no
interest charge unlike the regular credit card. The reason for
this is that the money used is the owner’s actual money
therefore no interest is needed.
3. Prepaid credit cards are free from financial or credit
problems.
4. Prepaid cards can be used almost anywhere. Prepaid
MasterCards and Visa cards are almost accepted anywhere in the
world.
Disadvantages of Prepaid Credit Cards:
1. Usually a set-up fee of 5 to 50 dollars is needed when an
account is opened. Then another fee of $5 or more is paid every
time more money is loaded onto the card.
Regular credit cards usually do not charge a set-up fee or
annual fees.
2. Cash up front is needed before any purchase could be made
with the prepaid card.
This could be an advantage since compulsive spending can be
avoided.
3. There are some prepaid credit cards that cannot be used to
pay regular payments such as monthly electric consumption or
online services.
The Conclusion:
The prepaid credit card is a definite help for people who have
past credit problems. It is just a matter of choosing the right
prepaid credit card that suits ones’ needs.
About the Author: David Riewe is a Publisher and Online
Marketer. Visit his Credit Resources Blog Below:
http://www.push-button-online-income.com/creditcards/
Source: http://www.isnare.com
Friday, July 27, 2007
Credit Card Machines 802 Home
Credit Card Is Adding The Silver Lining To Your Pocket
By Sarah Jones
In the new millennium plastic money or credit cards has
rendered a new zing factor to your pocket. This has not only
made you economically more flexible but subsequently added
glamour to your financial image as well. No more bulging out hip
pockets with excess of liquid cash. Instead, the slimmer your
pocket; the smarter you look. But behind all these inviting
attributes of credit cards there seems to be a trap laid out for
people who are impulsive and careless
(http://www.debtconsolidationcare.com/avoidcardtraps.html)
The usage of credit cards have been on the highest spree this
decade and along with the usage, the debt rates has also
somersaulted sky high. Majority of the citizens of the U.S. owe
thousands of dollars as credit card bills. While gross dollar
volume on bank credit cards has increased 2.5 times since 1994,
the average transaction has increased about 16% over the past
decade. The average transaction on a general purpose credit
card, carrying the VISA, MasterCard, American Express, or
Discover brand, is now approaching $102, compared to $87 in
1994.
23rd Dec. 2004 is termed as Black Thursday and is poised to be
a voluminous day in credit card usage in 2004. On this day
Americans have used credit and debit cards to pay for nearly $12
billion. This computes to an average of more than $8 million per
minute; however it could easily top $20 million per minute
during peak hours.
In the present era credit card debt carried by an average
American is about $8,562 (Approx.). The total U.S. credit card
debt in the first quarter of 2002 was approximately $60 billion
(Approx.). Total finance charges Americans paid in 2001is $50
billion (Approx.).
Recently, the New York Times examined how the use of credit has
taken off dramatically in the United States since 1990. While
the number of people holding charge cards grew about 75 percent.
This went up from 82 million in 1990 to 144 million in 2003 and
the amount they charged during that period grew by a much larger
percentage. It is approximately 350 percent, from $338 billion
to $1.5 trillion.
Nellie Mae, the nation’s largest maker of student loans says
that the average undergraduate student has $2,200 in credit card
debt. That figure jumps to $5,800 for graduate students. David
Sandor, a vice president at Visa USA, says that only 54 percent
of college students pay off their credit card balances every
month.
The average credit card interest rate is around 18.9%.
Approximately half of all credit card holders pay only their
minimum monthly requirements. There are a total of 1.2 billion
credit and retail cards in North America. The number of credit
card holders who declared bankruptcy last year was a huge 1.3
million.
Credit cards have undoubtedly given us better mileage in
handling our finance; it has made us mobile and flexible in cash
handling. But it is extremely important to make proper
utilization of this plastic money. There lies a big black trench
of debts if you use it recklessly. These slim plastic cards can
often be the cause of bulk debts if one is impulsive or unwise.
For better insight in this topic please view:
http://www.debtconsolidationcare.com/card-starter.html
http://www.debtconsolidationcare.com/card-counseling.html
About the Author: Sarah Jones is a contributing writer to
http://www.debtconsolidationcare.com And is currently working on
a special section in the site called do it yourself where you
can eliminate your debts and become debt free... Email:
sarah@debtconsolidationcare.com
Source: http://www.isnare.com
By Sarah Jones
In the new millennium plastic money or credit cards has
rendered a new zing factor to your pocket. This has not only
made you economically more flexible but subsequently added
glamour to your financial image as well. No more bulging out hip
pockets with excess of liquid cash. Instead, the slimmer your
pocket; the smarter you look. But behind all these inviting
attributes of credit cards there seems to be a trap laid out for
people who are impulsive and careless
(http://www.debtconsolidationcare.com/avoidcardtraps.html)
The usage of credit cards have been on the highest spree this
decade and along with the usage, the debt rates has also
somersaulted sky high. Majority of the citizens of the U.S. owe
thousands of dollars as credit card bills. While gross dollar
volume on bank credit cards has increased 2.5 times since 1994,
the average transaction has increased about 16% over the past
decade. The average transaction on a general purpose credit
card, carrying the VISA, MasterCard, American Express, or
Discover brand, is now approaching $102, compared to $87 in
1994.
23rd Dec. 2004 is termed as Black Thursday and is poised to be
a voluminous day in credit card usage in 2004. On this day
Americans have used credit and debit cards to pay for nearly $12
billion. This computes to an average of more than $8 million per
minute; however it could easily top $20 million per minute
during peak hours.
In the present era credit card debt carried by an average
American is about $8,562 (Approx.). The total U.S. credit card
debt in the first quarter of 2002 was approximately $60 billion
(Approx.). Total finance charges Americans paid in 2001is $50
billion (Approx.).
Recently, the New York Times examined how the use of credit has
taken off dramatically in the United States since 1990. While
the number of people holding charge cards grew about 75 percent.
This went up from 82 million in 1990 to 144 million in 2003 and
the amount they charged during that period grew by a much larger
percentage. It is approximately 350 percent, from $338 billion
to $1.5 trillion.
Nellie Mae, the nation’s largest maker of student loans says
that the average undergraduate student has $2,200 in credit card
debt. That figure jumps to $5,800 for graduate students. David
Sandor, a vice president at Visa USA, says that only 54 percent
of college students pay off their credit card balances every
month.
The average credit card interest rate is around 18.9%.
Approximately half of all credit card holders pay only their
minimum monthly requirements. There are a total of 1.2 billion
credit and retail cards in North America. The number of credit
card holders who declared bankruptcy last year was a huge 1.3
million.
Credit cards have undoubtedly given us better mileage in
handling our finance; it has made us mobile and flexible in cash
handling. But it is extremely important to make proper
utilization of this plastic money. There lies a big black trench
of debts if you use it recklessly. These slim plastic cards can
often be the cause of bulk debts if one is impulsive or unwise.
For better insight in this topic please view:
http://www.debtconsolidationcare.com/card-starter.html
http://www.debtconsolidationcare.com/card-counseling.html
About the Author: Sarah Jones is a contributing writer to
http://www.debtconsolidationcare.com And is currently working on
a special section in the site called do it yourself where you
can eliminate your debts and become debt free... Email:
sarah@debtconsolidationcare.com
Source: http://www.isnare.com
Tuesday, July 24, 2007
Credit Card Machines 802 Home
Best Credit Card Processing Rates
By Shane Penrod
Everyone goes into business to make money, so why spend more of
your profits on expensive transaction fees, Website maintenance,
service agreements and high credit card processing rates? When
you take time to shop for the best deals, you can save quite a
bit of money that can be used to good purpose in other parts of
your business. Start shopping for the best credit card
processing rates and open a merchant account.
You will first need to find a reputable bank or credit union
that will agree to extend a merchant account to you for this
purpose. To get approved, you will need a solid credit history,
a reasonable business plan, and documentation to show that you
are able to manage the costs associated with credit card
processing rates. Typically, these include an installation fee
for credit card processing equipment, a monthly gateway fee for
your financial host, a transaction fee of a few cents per each
or an overall percentage total each month. You also may be
offered Website service that will entail a hosting fee, a
service contract cost, and a designer’s or updating service fee.
Be sure to carefully read the terms of any contract that you
receive. Never sign something that you don’t understand or with
which you cannot completely agree. Your company may have to pay
for a monthly minimum up to a certain number of transactions,
after which the balance for that month do not require additional
fees.
Credit card processing rates can vary by company or by
processor program. Some companies charge no installation fee,
while others require a one-time cost of a few hundred dollars,
depending on the program’s complexity. You may have to pay
between 15 and 25 cents per transaction, or you could opt to pay
a monthly percentage for the entire amount of business generated
by your credit card processing unit; this amount often falls
below 2%.
It is always a good idea to compare rates among competing
financial institutions. If you really like the services offered
by one merchant account company but prefer the lower rates of a
second company, tell the first one about the competitor’s lower
rates, and perhaps the first company will meet or beat the lower
cost in order to get your business. At first, you may want to
keep the customer’s interests in mind when shopping for credit
card processing rates. In other words, passing on the savings of
a particular program to your customers will keep them coming
back to do business with you. If your rates are too high or not
competitive enough, they may decide to take their business
elsewhere.
As you plan to set up your new credit card processing service
rates, it may help to let them know in advance that this program
is coming so they can prepare and perhaps even help to get the
word out to other potential customers. Then, after installing
your new credit card processor, you should not hear complaints
that anyone was blindsided or treated unfairly. If someone does
complain, politely remind them of the earlier notices.
When you are ready to start processing credit card payments,
don’t be tempted to go for the option with the most features or
the most sophisticated set-up. Opt for a system that will best
suit your company needs and your customers’ interests, as well
as offering the best credit card processing rates.
About the Author: Shane Penrod is the founder of
Merchant-Account-Quotes.com Specializing in allowing merchants
the ability to shop and compare multiple quotes from national
merchant account providers. For free quotes on merchant account
rates and fees, please go to
http://www.merchant-account-quotes.com
Source: http://www.isnare.com
By Shane Penrod
Everyone goes into business to make money, so why spend more of
your profits on expensive transaction fees, Website maintenance,
service agreements and high credit card processing rates? When
you take time to shop for the best deals, you can save quite a
bit of money that can be used to good purpose in other parts of
your business. Start shopping for the best credit card
processing rates and open a merchant account.
You will first need to find a reputable bank or credit union
that will agree to extend a merchant account to you for this
purpose. To get approved, you will need a solid credit history,
a reasonable business plan, and documentation to show that you
are able to manage the costs associated with credit card
processing rates. Typically, these include an installation fee
for credit card processing equipment, a monthly gateway fee for
your financial host, a transaction fee of a few cents per each
or an overall percentage total each month. You also may be
offered Website service that will entail a hosting fee, a
service contract cost, and a designer’s or updating service fee.
Be sure to carefully read the terms of any contract that you
receive. Never sign something that you don’t understand or with
which you cannot completely agree. Your company may have to pay
for a monthly minimum up to a certain number of transactions,
after which the balance for that month do not require additional
fees.
Credit card processing rates can vary by company or by
processor program. Some companies charge no installation fee,
while others require a one-time cost of a few hundred dollars,
depending on the program’s complexity. You may have to pay
between 15 and 25 cents per transaction, or you could opt to pay
a monthly percentage for the entire amount of business generated
by your credit card processing unit; this amount often falls
below 2%.
It is always a good idea to compare rates among competing
financial institutions. If you really like the services offered
by one merchant account company but prefer the lower rates of a
second company, tell the first one about the competitor’s lower
rates, and perhaps the first company will meet or beat the lower
cost in order to get your business. At first, you may want to
keep the customer’s interests in mind when shopping for credit
card processing rates. In other words, passing on the savings of
a particular program to your customers will keep them coming
back to do business with you. If your rates are too high or not
competitive enough, they may decide to take their business
elsewhere.
As you plan to set up your new credit card processing service
rates, it may help to let them know in advance that this program
is coming so they can prepare and perhaps even help to get the
word out to other potential customers. Then, after installing
your new credit card processor, you should not hear complaints
that anyone was blindsided or treated unfairly. If someone does
complain, politely remind them of the earlier notices.
When you are ready to start processing credit card payments,
don’t be tempted to go for the option with the most features or
the most sophisticated set-up. Opt for a system that will best
suit your company needs and your customers’ interests, as well
as offering the best credit card processing rates.
About the Author: Shane Penrod is the founder of
Merchant-Account-Quotes.com Specializing in allowing merchants
the ability to shop and compare multiple quotes from national
merchant account providers. For free quotes on merchant account
rates and fees, please go to
http://www.merchant-account-quotes.com
Source: http://www.isnare.com
Friday, July 20, 2007
Credit Card Macihnes 802 Home
Credit Card Processing
By [http://ezinearticles.com/?expert=Thomas_Morva]Thomas Morva
Nowadays, almost all establishments accept credit card payments. This is because many consumers make their purchases using their credit cards, and establishments who do not accept credit card payments risks losing potential sales. Given this, it is then essential for any company that intends to sell products in the market to make sure that their stores can accept credit payments. There’s good news, though! Today, accepting credit cards is usually a fairly easy process because companies can gain access to the tools that they need to be able to process credit card payments from a number of sources.
Setting up a merchant account
The first step in accepting credit cards is setting up a merchant account. This will involve locating the right merchant account provider or credit card processor. Many businesses do this through the banks where they do their business banking. However, not all banks provide credit card processing services.
A good source of information is any trade associations that a business belongs to, which may have negotiated rates with a certain credit card processor that the business could contact. Another good source of leads is from other businesses that already accept credit card payments. On the other hand, given that most processors aggressively pursue clients especially start up companies, it is most likely that these processors will contact new business owners and offer them their services.
In deciding on which credit card processor to use, it is a good idea to employ canvassing strategies, which includes interviewing each credit processor and asking them questions that can help business owners pick the right processor. Some of these questions include asking them about their fees, their rates, and other services that they provide their clients. After which, business owners then should analyze which processor can give them the best deal for the credit card processing services that they are offering.
Nowadays, no business establishment should be without credit card processing capabilities. This is because given that most people make many of their purchases using their credit cards, establishments that do not accept credit card payments risk losing a significant number of sales. The good news is that today, the tools that businesses need to be able to accept credit card payments, which includes merchant accounts, are easily accessible, as there are a large number of companies that provide credit card processing services. [http://www.i-CreditCardProcessing.com]Credit Card Processing provides detailed information on Credit Card Processing, Online Credit Card Processing, Credit Card Processing Software, Wireless Credit Card Processing and more. Credit Card Processing is affiliated with [http://www.e-CreditCardTerminals.com]Wireless Credit Card Terminals.
Article Source: http://EzineArticles.com/?expert=Thomas_Morva http://EzineArticles.com/?Credit-Card-Processing&id=255743
By [http://ezinearticles.com/?expert=Thomas_Morva]Thomas Morva
Nowadays, almost all establishments accept credit card payments. This is because many consumers make their purchases using their credit cards, and establishments who do not accept credit card payments risks losing potential sales. Given this, it is then essential for any company that intends to sell products in the market to make sure that their stores can accept credit payments. There’s good news, though! Today, accepting credit cards is usually a fairly easy process because companies can gain access to the tools that they need to be able to process credit card payments from a number of sources.
Setting up a merchant account
The first step in accepting credit cards is setting up a merchant account. This will involve locating the right merchant account provider or credit card processor. Many businesses do this through the banks where they do their business banking. However, not all banks provide credit card processing services.
A good source of information is any trade associations that a business belongs to, which may have negotiated rates with a certain credit card processor that the business could contact. Another good source of leads is from other businesses that already accept credit card payments. On the other hand, given that most processors aggressively pursue clients especially start up companies, it is most likely that these processors will contact new business owners and offer them their services.
In deciding on which credit card processor to use, it is a good idea to employ canvassing strategies, which includes interviewing each credit processor and asking them questions that can help business owners pick the right processor. Some of these questions include asking them about their fees, their rates, and other services that they provide their clients. After which, business owners then should analyze which processor can give them the best deal for the credit card processing services that they are offering.
Nowadays, no business establishment should be without credit card processing capabilities. This is because given that most people make many of their purchases using their credit cards, establishments that do not accept credit card payments risk losing a significant number of sales. The good news is that today, the tools that businesses need to be able to accept credit card payments, which includes merchant accounts, are easily accessible, as there are a large number of companies that provide credit card processing services. [http://www.i-CreditCardProcessing.com]Credit Card Processing provides detailed information on Credit Card Processing, Online Credit Card Processing, Credit Card Processing Software, Wireless Credit Card Processing and more. Credit Card Processing is affiliated with [http://www.e-CreditCardTerminals.com]Wireless Credit Card Terminals.
Article Source: http://EzineArticles.com/?expert=Thomas_Morva http://EzineArticles.com/?Credit-Card-Processing&id=255743
Wednesday, July 18, 2007
Credit Card Machines 802 Home
Credit Card Charges Set To Fall
By John Edmond
In the UK the 8 largest credit card providers have been ordered
to reduce their charges, for default and late payment, by
between 40 and 50%. The current late payment charge by most
major issuers is between £20 - £25 ($30 - $40 US) and the have
been instructed to slash that down to £12 -£15 UK ($18 - $20
US).
The UK Office of Fair trading, who have been investigating
credit card charges for the last few months, stated "The OFT
considers that, in a consumer contract, a default charge is
likely to be disproportionately high if it is more than a
genuine pre-estimate of the damages that the card issuer would
win in court if it sued the cardholder for breach of contract,"
adding "The OFT's provisional view is that the levels of the
default charges imposed by the credit card companies need to be
reduced in order to be fair."
In the opinion of the OFT the current charges of between £20
and £25 excessive and possibly illegal and has given the card
issuers 3 months to respond.
Whilst the current ruling is provisional it is expected that
the final ruling will apply to all credit card issuers in the UK
and, if necessary, the OFT will take a test case to the UK
courts for a ruling forcing the banks to comply.
Once applied to credit cards the decision will also apply to
overdrafts, store cards and mortgages.
Estimates on what this will cost the banks vary from 400
million to 1 billion UKP - up to 50% of the profits earned on
credit cards. In recent results the big 5 banks in the UK
declared record overall profits of £33 billion, so they can
easily reduce these charges.
Matt Barrett, the former chief executive of Barclays, famously
once told MPs that he didn't use credit cards because they were
"too expensive". Whilst the ruling is intended to reduce costs
to customers it's likely that the banks will other find ways to
keep the costs high.
It is already clear that lenders are not great fans of interest
free balance transfers as most have applied a 2 - 3%
administrative charge. Expect this trend to continue and
possibly for the interest free transfers to disappear
altogether.
Expect an increase in the number of cards carrying an annual
fee and for the annual fee on current cards to increase. Further
adjustments could include the disappearance of cashback and a
reduction in free services, travel insurance, flights, holidays
and other promotions.
Though this ruling applies to the UK only, once it is enforced
card issuers around the World will be under pressure to follow
and countries with strong consumer protection legislation may
follow the OFT's lead.
This is therefore an ideal time to review your current credit
cards and take advantage of offers while they last.
If you have a credit card debt, which is rolled over each
month, take advantage now of the interest free offers currently
available. Read the small print, some carry a 2-3% charge, avoid
these as there are still a few interest free transfer offers
which do not have the administration charge.
If you repay your cards in full each month take a look at the
cards offering cashback and get a discount on your purchases
while it still exists.
If you have a balance which will take years rather than months
to repay look at the permanent low interest cards or even better
look at debt consolidation and move the debt to a low interest
loan or mortgage.
Credit cards are an expensive form of long term borrowing. This
ruling, whilst welcome, may herald the start of a restructuring
of credit cards and where they will end is very uncertain.
About the Author: John worked for many years in insurance and
finance and now writes on credit cards and debt management. For
advice on credit cards and debt management go to
http://www.card-debt.net or
http://www.consolidation-loan-advice.info
Source: http://www.isnare.com
By John Edmond
In the UK the 8 largest credit card providers have been ordered
to reduce their charges, for default and late payment, by
between 40 and 50%. The current late payment charge by most
major issuers is between £20 - £25 ($30 - $40 US) and the have
been instructed to slash that down to £12 -£15 UK ($18 - $20
US).
The UK Office of Fair trading, who have been investigating
credit card charges for the last few months, stated "The OFT
considers that, in a consumer contract, a default charge is
likely to be disproportionately high if it is more than a
genuine pre-estimate of the damages that the card issuer would
win in court if it sued the cardholder for breach of contract,"
adding "The OFT's provisional view is that the levels of the
default charges imposed by the credit card companies need to be
reduced in order to be fair."
In the opinion of the OFT the current charges of between £20
and £25 excessive and possibly illegal and has given the card
issuers 3 months to respond.
Whilst the current ruling is provisional it is expected that
the final ruling will apply to all credit card issuers in the UK
and, if necessary, the OFT will take a test case to the UK
courts for a ruling forcing the banks to comply.
Once applied to credit cards the decision will also apply to
overdrafts, store cards and mortgages.
Estimates on what this will cost the banks vary from 400
million to 1 billion UKP - up to 50% of the profits earned on
credit cards. In recent results the big 5 banks in the UK
declared record overall profits of £33 billion, so they can
easily reduce these charges.
Matt Barrett, the former chief executive of Barclays, famously
once told MPs that he didn't use credit cards because they were
"too expensive". Whilst the ruling is intended to reduce costs
to customers it's likely that the banks will other find ways to
keep the costs high.
It is already clear that lenders are not great fans of interest
free balance transfers as most have applied a 2 - 3%
administrative charge. Expect this trend to continue and
possibly for the interest free transfers to disappear
altogether.
Expect an increase in the number of cards carrying an annual
fee and for the annual fee on current cards to increase. Further
adjustments could include the disappearance of cashback and a
reduction in free services, travel insurance, flights, holidays
and other promotions.
Though this ruling applies to the UK only, once it is enforced
card issuers around the World will be under pressure to follow
and countries with strong consumer protection legislation may
follow the OFT's lead.
This is therefore an ideal time to review your current credit
cards and take advantage of offers while they last.
If you have a credit card debt, which is rolled over each
month, take advantage now of the interest free offers currently
available. Read the small print, some carry a 2-3% charge, avoid
these as there are still a few interest free transfer offers
which do not have the administration charge.
If you repay your cards in full each month take a look at the
cards offering cashback and get a discount on your purchases
while it still exists.
If you have a balance which will take years rather than months
to repay look at the permanent low interest cards or even better
look at debt consolidation and move the debt to a low interest
loan or mortgage.
Credit cards are an expensive form of long term borrowing. This
ruling, whilst welcome, may herald the start of a restructuring
of credit cards and where they will end is very uncertain.
About the Author: John worked for many years in insurance and
finance and now writes on credit cards and debt management. For
advice on credit cards and debt management go to
http://www.card-debt.net or
http://www.consolidation-loan-advice.info
Source: http://www.isnare.com
Friday, July 13, 2007
Credit Card Machines 802 Home
Credit Card Processing On The Internet
By Ted Roxan
So you have finally finished your e-commerce web site, hired
the best web publisher, added all the bells and whistles,
outstanding graphics, and great merchandise. Now, how does your
prospective customer pay you for your products? Clearly, it is
necessary for your site to accept, and process credit card
payments, in real time. Failure to do so, would result in a
failing enterprise.
Before you can begin the application process, there are several
standards that all credit card processors have set. Follow this
checklist and you will save yourself a significant amount of
time, and aggravation.
1) The checkout, and transaction pages must be secure. This
protects the customer from credit card, or identity fraud,
which has become epidemic. You achieve this “security” by
installing a secure socket layer certificate, or SSL. SSL
encrypts information being entered on your site as it is sent
across the Internet, so hackers are unable to steal the
transmitted information. This Certificate has become very
common, and any web host would be able to assist you.
2) A robust Shopping Cart software that utilizes the highest
degree of security, and is compatible with the credit card
processor. This program must be able to receive, and process
orders. Collect personal data, and securely transmit the credit
card data from software to the credit card processor. Most
importantly, the software should provide the building blocks
for a complete, successful customer experience.
3) Your server must have a firewall, especially if you plan on
storing the credit card information on your server. Basically,
a firewall is a combination of software, and hardware, that
inspects incoming data, and filters unwanted, or potentially
destructive packets of information. This firewall will not
allow hackers to enter your server, and steal sensitive
information.
When all these conditions have been met, you are ready to
contact your bank to open a credit card merchant’s account.
Once your account is opened, your bank will suggest a credit
card Gateway. A credit card Gateway receives the customer’s
credit card information from your web site, approves or
declines the charge, and ultimately transmits money to your
bank.
Although the process appears to be very complicated, it is
quite straightforward when you know what you are doing. Plan
ahead, avoid frustration, and provide your customers with an
easy, secure experience that will make them come back for more.
About the Author: Ted Roxan is a contributing editor of
Internet Credit Card Processing Resource. For more details on
Internet merchant accounts and Credit Card processors go to:
http://myinternet-credit-card-processing.com/
Source: http://www.isnare.com
By Ted Roxan
So you have finally finished your e-commerce web site, hired
the best web publisher, added all the bells and whistles,
outstanding graphics, and great merchandise. Now, how does your
prospective customer pay you for your products? Clearly, it is
necessary for your site to accept, and process credit card
payments, in real time. Failure to do so, would result in a
failing enterprise.
Before you can begin the application process, there are several
standards that all credit card processors have set. Follow this
checklist and you will save yourself a significant amount of
time, and aggravation.
1) The checkout, and transaction pages must be secure. This
protects the customer from credit card, or identity fraud,
which has become epidemic. You achieve this “security” by
installing a secure socket layer certificate, or SSL. SSL
encrypts information being entered on your site as it is sent
across the Internet, so hackers are unable to steal the
transmitted information. This Certificate has become very
common, and any web host would be able to assist you.
2) A robust Shopping Cart software that utilizes the highest
degree of security, and is compatible with the credit card
processor. This program must be able to receive, and process
orders. Collect personal data, and securely transmit the credit
card data from software to the credit card processor. Most
importantly, the software should provide the building blocks
for a complete, successful customer experience.
3) Your server must have a firewall, especially if you plan on
storing the credit card information on your server. Basically,
a firewall is a combination of software, and hardware, that
inspects incoming data, and filters unwanted, or potentially
destructive packets of information. This firewall will not
allow hackers to enter your server, and steal sensitive
information.
When all these conditions have been met, you are ready to
contact your bank to open a credit card merchant’s account.
Once your account is opened, your bank will suggest a credit
card Gateway. A credit card Gateway receives the customer’s
credit card information from your web site, approves or
declines the charge, and ultimately transmits money to your
bank.
Although the process appears to be very complicated, it is
quite straightforward when you know what you are doing. Plan
ahead, avoid frustration, and provide your customers with an
easy, secure experience that will make them come back for more.
About the Author: Ted Roxan is a contributing editor of
Internet Credit Card Processing Resource. For more details on
Internet merchant accounts and Credit Card processors go to:
http://myinternet-credit-card-processing.com/
Source: http://www.isnare.com
Subscribe to:
Posts (Atom)