Credit Card Offers
By Beth Pardue
The vast majority of credit card offers you receive are fair
and ethical. But there are two things to look out for that some
credit card companies have been known to pull on unwary
customers. These tactics are perfectly legal, so your only
recourse to preventing them is to be alert.
The old bait and switch. You apply for a great credit card that
gives you tons of frequent-flier miles, hoping to put all of
your shopping on it, and then head to the Bahamas in February.
When and if you get that card, study the terms carefully. If
you don't qualify for the great card, the credit card company
can send you a completely different card with different
terms--without telling you. Visit www.amex-visa-mastercard.com
for a list of reputable credit card offers.
Cash advance fees and rates. Read the fine print on your
statement and you'll see it's a very bad idea to take cash out
on your credit card. Your card might have a really low rate for
purchases, but the rate for cash advances is much higher. And
there is no grace period--you start paying interest right away.
Aside from paying a high rate on the cash you take out, you're
going to pay a fee, usually 2 percent to 4 percent of the
amount advanced. And your payments will be applied to the
lower-interest balance before they are applied to your cash
advance. Don't get yourself into trouble with either of these
two mistakes ... read the terms of your credit card offers
carefully before you activate them.
About the Author: This article was written by Beth Pardue who
has over 10 years of experience in the financial industry
assisting clients with assorted financial needs. To learn more
about credit cards or to apply for a credit card online please
visit: Visit http://www.amex-visa-mastercard.com today!
Source: http://www.isnare.com
Tuesday, August 7, 2007
Tuesday, July 31, 2007
Credit Card Processing
An Interchange Plus Pricing Structure Can Greatly Reduce Your
Credit Card Processing And Merchant Account Fees.
By Gerald Kadish
Traditionally small to mid sized businesses have been set up
with what is called multi-tier pricing for their credit card
processing. This system is usually set up with three tiers
(qualified, mid-qualified, and non-qualifed.) Occassionally, if
the business owner has negotiated well, there will be a fourth
tier for qualified offline debit cards. While this system has
worked well for many years, the increasing number of rewards and
corporate cards being issued has made this type of pricing
obsolete.
Visa and Mastercard have many different interchange categories
for the multiple card types that are issued. Tier pricing takes
a large number of these categories and lumps them into one of
the three tier buckets available to the merchant. If the
merchant only ever takes standard credit cards then this system
will work well for them. Once they start to see more debit,
rewards, and corporate cards being used in their place of
business they will notice that their merchant services bill has
increased dramatically. This is because many of these
transactions are falling in to the mid or non qualified
transaction categories.
Some of these cards are actually not that much more to process
than a standard credit card, but the underwriting company for
the merchant account needs to make sure that they are profiting
on every transaction. They can ensure profit if they charge a
large mark up for any transactions that are not qualified. So
you may pay 2.9% for a mid qualified transaction and 3.5% for a
non qualified transaction (These numbers can range much higher
and lower.)
The fact is that some of the cards that fall into these
categories may only cost an additional quarter of a percent to
process. So the merchant may over pay by 1-2% to run certain
card types. The business owner can avoid this if they are set
up on interchange plus pricing.
What interchange plus pricing does is pass the true cost of
running the card right through to the merchant. So the fees
associated with that individual transaction will be put through
at the lowest possible cost. The business owner pays a mark up
at the end of the month based solely on their number of
transactions and the sales dollar volume. (typically .25-.50%
plus $.10-$.15 per trnasaction.)
This system will almost always prove to be a better deal than a
three tier structure. Make sure to check your latest credit
card processing statement to look for a high number of mid or
non qualified transactions. If you see them, then setting up an
interchange pluse pricing system may be the way to start saving
your business money.
About the Author: Jerry Kadish and Capital Bankcard specialize
in setting up gift and loyalty card programs and merchant
services. We provide fully customized programs for all of our
clients and help them use our products to promote their
business. To find out more check us out at:
http://www.capital-bankcard.com
Source: http://www.isnare.com
Credit Card Processing And Merchant Account Fees.
By Gerald Kadish
Traditionally small to mid sized businesses have been set up
with what is called multi-tier pricing for their credit card
processing. This system is usually set up with three tiers
(qualified, mid-qualified, and non-qualifed.) Occassionally, if
the business owner has negotiated well, there will be a fourth
tier for qualified offline debit cards. While this system has
worked well for many years, the increasing number of rewards and
corporate cards being issued has made this type of pricing
obsolete.
Visa and Mastercard have many different interchange categories
for the multiple card types that are issued. Tier pricing takes
a large number of these categories and lumps them into one of
the three tier buckets available to the merchant. If the
merchant only ever takes standard credit cards then this system
will work well for them. Once they start to see more debit,
rewards, and corporate cards being used in their place of
business they will notice that their merchant services bill has
increased dramatically. This is because many of these
transactions are falling in to the mid or non qualified
transaction categories.
Some of these cards are actually not that much more to process
than a standard credit card, but the underwriting company for
the merchant account needs to make sure that they are profiting
on every transaction. They can ensure profit if they charge a
large mark up for any transactions that are not qualified. So
you may pay 2.9% for a mid qualified transaction and 3.5% for a
non qualified transaction (These numbers can range much higher
and lower.)
The fact is that some of the cards that fall into these
categories may only cost an additional quarter of a percent to
process. So the merchant may over pay by 1-2% to run certain
card types. The business owner can avoid this if they are set
up on interchange plus pricing.
What interchange plus pricing does is pass the true cost of
running the card right through to the merchant. So the fees
associated with that individual transaction will be put through
at the lowest possible cost. The business owner pays a mark up
at the end of the month based solely on their number of
transactions and the sales dollar volume. (typically .25-.50%
plus $.10-$.15 per trnasaction.)
This system will almost always prove to be a better deal than a
three tier structure. Make sure to check your latest credit
card processing statement to look for a high number of mid or
non qualified transactions. If you see them, then setting up an
interchange pluse pricing system may be the way to start saving
your business money.
About the Author: Jerry Kadish and Capital Bankcard specialize
in setting up gift and loyalty card programs and merchant
services. We provide fully customized programs for all of our
clients and help them use our products to promote their
business. To find out more check us out at:
http://www.capital-bankcard.com
Source: http://www.isnare.com
Friday, July 27, 2007
Credit Card Processing
An Interchange Plus Pricing Structure Can Greatly Reduce Your
Credit Card Processing And Merchant Account Fees.
By Gerald Kadish
Traditionally small to mid sized businesses have been set up
with what is called multi-tier pricing for their credit card
processing. This system is usually set up with three tiers
(qualified, mid-qualified, and non-qualifed.) Occassionally, if
the business owner has negotiated well, there will be a fourth
tier for qualified offline debit cards. While this system has
worked well for many years, the increasing number of rewards and
corporate cards being issued has made this type of pricing
obsolete.
Visa and Mastercard have many different interchange categories
for the multiple card types that are issued. Tier pricing takes
a large number of these categories and lumps them into one of
the three tier buckets available to the merchant. If the
merchant only ever takes standard credit cards then this system
will work well for them. Once they start to see more debit,
rewards, and corporate cards being used in their place of
business they will notice that their merchant services bill has
increased dramatically. This is because many of these
transactions are falling in to the mid or non qualified
transaction categories.
Some of these cards are actually not that much more to process
than a standard credit card, but the underwriting company for
the merchant account needs to make sure that they are profiting
on every transaction. They can ensure profit if they charge a
large mark up for any transactions that are not qualified. So
you may pay 2.9% for a mid qualified transaction and 3.5% for a
non qualified transaction (These numbers can range much higher
and lower.)
The fact is that some of the cards that fall into these
categories may only cost an additional quarter of a percent to
process. So the merchant may over pay by 1-2% to run certain
card types. The business owner can avoid this if they are set
up on interchange plus pricing.
What interchange plus pricing does is pass the true cost of
running the card right through to the merchant. So the fees
associated with that individual transaction will be put through
at the lowest possible cost. The business owner pays a mark up
at the end of the month based solely on their number of
transactions and the sales dollar volume. (typically .25-.50%
plus $.10-$.15 per trnasaction.)
This system will almost always prove to be a better deal than a
three tier structure. Make sure to check your latest credit
card processing statement to look for a high number of mid or
non qualified transactions. If you see them, then setting up an
interchange pluse pricing system may be the way to start saving
your business money.
About the Author: Jerry Kadish and Capital Bankcard specialize
in setting up gift and loyalty card programs and merchant
services. We provide fully customized programs for all of our
clients and help them use our products to promote their
business. To find out more check us out at:
http://www.capital-bankcard.com
Source: http://www.isnare.com
Credit Card Processing And Merchant Account Fees.
By Gerald Kadish
Traditionally small to mid sized businesses have been set up
with what is called multi-tier pricing for their credit card
processing. This system is usually set up with three tiers
(qualified, mid-qualified, and non-qualifed.) Occassionally, if
the business owner has negotiated well, there will be a fourth
tier for qualified offline debit cards. While this system has
worked well for many years, the increasing number of rewards and
corporate cards being issued has made this type of pricing
obsolete.
Visa and Mastercard have many different interchange categories
for the multiple card types that are issued. Tier pricing takes
a large number of these categories and lumps them into one of
the three tier buckets available to the merchant. If the
merchant only ever takes standard credit cards then this system
will work well for them. Once they start to see more debit,
rewards, and corporate cards being used in their place of
business they will notice that their merchant services bill has
increased dramatically. This is because many of these
transactions are falling in to the mid or non qualified
transaction categories.
Some of these cards are actually not that much more to process
than a standard credit card, but the underwriting company for
the merchant account needs to make sure that they are profiting
on every transaction. They can ensure profit if they charge a
large mark up for any transactions that are not qualified. So
you may pay 2.9% for a mid qualified transaction and 3.5% for a
non qualified transaction (These numbers can range much higher
and lower.)
The fact is that some of the cards that fall into these
categories may only cost an additional quarter of a percent to
process. So the merchant may over pay by 1-2% to run certain
card types. The business owner can avoid this if they are set
up on interchange plus pricing.
What interchange plus pricing does is pass the true cost of
running the card right through to the merchant. So the fees
associated with that individual transaction will be put through
at the lowest possible cost. The business owner pays a mark up
at the end of the month based solely on their number of
transactions and the sales dollar volume. (typically .25-.50%
plus $.10-$.15 per trnasaction.)
This system will almost always prove to be a better deal than a
three tier structure. Make sure to check your latest credit
card processing statement to look for a high number of mid or
non qualified transactions. If you see them, then setting up an
interchange pluse pricing system may be the way to start saving
your business money.
About the Author: Jerry Kadish and Capital Bankcard specialize
in setting up gift and loyalty card programs and merchant
services. We provide fully customized programs for all of our
clients and help them use our products to promote their
business. To find out more check us out at:
http://www.capital-bankcard.com
Source: http://www.isnare.com
Thursday, July 26, 2007
Credit Card Processing
Choosing The Right Credit Card
By Mike Collins
They come day after day after day. Sometimes two, three, or
four at a time. Credit card offers. The credit card industry is
highly competitive and banks and other financial institutions
are constantly sending out mass mailings in an attempt to lure
potential customers to switch credit card providers.
And while it is generally not advisable to regularly open new
credit accounts, there are times when doing so can be
advantageous. But how do you compare all of the credit card
offers to know that you are choosing the right credit card?
There are a few things that you should compare and consider
before making your choice.
The interest rate. Obviously the higher the interest rate, the
more you will pay in interest charges. So the lower the rate
the better. Many cards now offer zero-percent introductory
rates for periods of up to a year. Transferring a balance to a
card like this can be an effective way to pay down your debt
quickly. But you have to read the fine print.
Credit card companies usually apply your payment to the debt
with the highest interest rate first. So if your interest rate
on purchases is 12 percent, your payment will be applied to
that balance until it is paid off and then you will begin
paying off the zero-percent portion. Because of this policy,
many people realize little savings in transferring their
balance to a zero-percent card. In order to take full advantage
of the policy, you should not make any purchases on the
zero-percent card. This will ensure that the balance will be
reduced as much as possible before the introductory offer ends.
Reward programs are great ways to gain prizes or cash back by
making purchases. Some cards will actually give you a small
percentage (about one or two percent) of your purchases back as
cash. Others let you earn points that can be redeemed for all
sorts of merchandise, airline tickets, or gift certificates.
Reward programs are a great bonus, as long as you are not
paying extra for it. A higher interest rate will quickly
eliminate any savings you receive through the reward program.
Annual Fees or Service Charges. I have never used a credit card
that charges any kind of annual fee. It just makes no sense to
me. There are so many credit card companies out there competing
for my business, why should I have to pay for the privilege of
using a particular card. Even if the card offers frequent-flyer
miles or cash back, the annual fee will reduce or even eliminate
the benefit gained. Shop around and you can find a card just as
good with no annual fee.
Keep these 3 things in mind when you are comparing the credit
offer and you can be confident that you are choosing the right
credit card.
About the Author: Mike Collins is the owner of
http://www.saving-money-and-living-debt-free.com, a friendly
guide to saving money, making extra money, and getting out of
debt.
Source: http://www.isnare.com
By Mike Collins
They come day after day after day. Sometimes two, three, or
four at a time. Credit card offers. The credit card industry is
highly competitive and banks and other financial institutions
are constantly sending out mass mailings in an attempt to lure
potential customers to switch credit card providers.
And while it is generally not advisable to regularly open new
credit accounts, there are times when doing so can be
advantageous. But how do you compare all of the credit card
offers to know that you are choosing the right credit card?
There are a few things that you should compare and consider
before making your choice.
The interest rate. Obviously the higher the interest rate, the
more you will pay in interest charges. So the lower the rate
the better. Many cards now offer zero-percent introductory
rates for periods of up to a year. Transferring a balance to a
card like this can be an effective way to pay down your debt
quickly. But you have to read the fine print.
Credit card companies usually apply your payment to the debt
with the highest interest rate first. So if your interest rate
on purchases is 12 percent, your payment will be applied to
that balance until it is paid off and then you will begin
paying off the zero-percent portion. Because of this policy,
many people realize little savings in transferring their
balance to a zero-percent card. In order to take full advantage
of the policy, you should not make any purchases on the
zero-percent card. This will ensure that the balance will be
reduced as much as possible before the introductory offer ends.
Reward programs are great ways to gain prizes or cash back by
making purchases. Some cards will actually give you a small
percentage (about one or two percent) of your purchases back as
cash. Others let you earn points that can be redeemed for all
sorts of merchandise, airline tickets, or gift certificates.
Reward programs are a great bonus, as long as you are not
paying extra for it. A higher interest rate will quickly
eliminate any savings you receive through the reward program.
Annual Fees or Service Charges. I have never used a credit card
that charges any kind of annual fee. It just makes no sense to
me. There are so many credit card companies out there competing
for my business, why should I have to pay for the privilege of
using a particular card. Even if the card offers frequent-flyer
miles or cash back, the annual fee will reduce or even eliminate
the benefit gained. Shop around and you can find a card just as
good with no annual fee.
Keep these 3 things in mind when you are comparing the credit
offer and you can be confident that you are choosing the right
credit card.
About the Author: Mike Collins is the owner of
http://www.saving-money-and-living-debt-free.com, a friendly
guide to saving money, making extra money, and getting out of
debt.
Source: http://www.isnare.com
Wednesday, July 25, 2007
Credit Card Processing
Perks Of Citibank Credit Card
By David Riewe
Citibank credit cards offer a wide range of benefits.
Basically, all of it features offer clients with security during
emergencies, the advantage of not bringing cash and checks, and
improving independence and responsibility in financial
management.
Other than these basic perks of credit cards, there are
specified benefits the Citibank credit cards have to offer. Here
are some of the credit cards and their corresponding perks:
1) Diners club international credit card. This kind of credit
card provides you with the decision of your own credit limit.
The interest rates would not show on your bill for fifty days.
Since this Citibank credit card could be used all around the
world, it gives you the privilege of using it within five
million companies worldwide. The ATM card could be used anywhere
in the world. And lastly, there is no extra fee when the
Citibank credit card is lost.
2) The Citibank Gold Card. This kind of Citibank credit card
provides you with a higher credit and cash limit. It offers you
access on international lounges and airports. It has a strong
and secured insurance. And there is no fee when the credit card
has been stolen, lost or damaged.
3) Jet Airways Citibank International Gold Card. This kind of
credit card allows the cardholder to take advantage of jet
privileges and promos on jet miles when you make use of the
credit or cash. When you have been approved with this kind of
credit card, you will be automatically given a jet airways ride
of 1500 miles. Plus, the services and credit card is insured.
4) The Citibank Silver Card. This kind of credit card has
several kinds of insurances like personal accidents, baggage and
household insurances that would cover up your expenses. There
are also occasional discounts on certain stores and zero costing
on lost credit cards.
5) The Citibank Woman’s card. This kind of credit card targets
the women. It provides women with discounts on jewelry,
cosmetics, health products, clothes and many shopping stores. It
also provides jewelry insurance and there is no extra fee when
the Citibank credit card is lost.
6) Specialty cards. There are Citibank credit cards that
provide you specifically with music and book stores usage, gives
you an advantage on concerts and movie passes, and could give
you discounts on oil transactions. These kinds of credit cards
would depend on which you apply for and use regularly.
With those numerous advantages, you will surely wonder how you
were able to get along without it.
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
Citibank credit cards offer a wide range of benefits.
Basically, all of it features offer clients with security during
emergencies, the advantage of not bringing cash and checks, and
improving independence and responsibility in financial
management.
Other than these basic perks of credit cards, there are
specified benefits the Citibank credit cards have to offer. Here
are some of the credit cards and their corresponding perks:
1) Diners club international credit card. This kind of credit
card provides you with the decision of your own credit limit.
The interest rates would not show on your bill for fifty days.
Since this Citibank credit card could be used all around the
world, it gives you the privilege of using it within five
million companies worldwide. The ATM card could be used anywhere
in the world. And lastly, there is no extra fee when the
Citibank credit card is lost.
2) The Citibank Gold Card. This kind of Citibank credit card
provides you with a higher credit and cash limit. It offers you
access on international lounges and airports. It has a strong
and secured insurance. And there is no fee when the credit card
has been stolen, lost or damaged.
3) Jet Airways Citibank International Gold Card. This kind of
credit card allows the cardholder to take advantage of jet
privileges and promos on jet miles when you make use of the
credit or cash. When you have been approved with this kind of
credit card, you will be automatically given a jet airways ride
of 1500 miles. Plus, the services and credit card is insured.
4) The Citibank Silver Card. This kind of credit card has
several kinds of insurances like personal accidents, baggage and
household insurances that would cover up your expenses. There
are also occasional discounts on certain stores and zero costing
on lost credit cards.
5) The Citibank Woman’s card. This kind of credit card targets
the women. It provides women with discounts on jewelry,
cosmetics, health products, clothes and many shopping stores. It
also provides jewelry insurance and there is no extra fee when
the Citibank credit card is lost.
6) Specialty cards. There are Citibank credit cards that
provide you specifically with music and book stores usage, gives
you an advantage on concerts and movie passes, and could give
you discounts on oil transactions. These kinds of credit cards
would depend on which you apply for and use regularly.
With those numerous advantages, you will surely wonder how you
were able to get along without it.
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
Tuesday, July 24, 2007
Credit Card Processing
First Credit Card Hazards
By Steve Wilcott
It seems like every time I check my mail there is at least one
or two pre-approved credit card applications. I’m sure you get
them, too. The thing is, you can have terrible credit and still
they flood in. Beware if you just filed bankruptcy because you
will get more of them then you know what to do with!
Credit card debt is all too easy to get into--over and over
again. We don’t feel like we are spending real money until the
bill comes, and then it’s too late. The credit card companies
know how to make it very tempting to fall back on any good
habits we’ve created and just spend away. It’s hard to get away
from, but we have to resist temptation.
When establishing good credit, one of the things we’re told to
do is to get a credit card and then use it to spend wisely.
Experts advise us to pay our bills on time and not to exceed
the credit limit. However, no one really talks to us when we
get that first card about how easily and quickly we hit that
limit, or how easy it is to miss that first monthly payment.
Once you get behind, it can be really hard to catch up.
Oftentimes, credit cards come with introductory interest rates
that are nothing or very low. But many times, those rates soon
change and you can find yourself with a full balance on your
card with an 18 or 20 percent interest rate! That interest rate
can then put you over your limit, if your not paying at least
the minimum payment, now making you susceptible to
over-the-limit fees. Before you know it, you are getting bad
reports on your credit reports for credit card debt on a card
that you haven’t even had very long.
Unfortunately, when times are hard, abusing credit cards is all
too easy. When the economy is bad and cash is tight, you might
find yourself putting your daily living expenses on your credit
cards. If there is any kind of pattern like this in your credit
card spending, it can fill up your credit reports pretty
quickly. When you are not making your payments, the credit card
companies do inquiries to verify your address or other
information. Every time someone makes an inquiry on your credit
report, it makes you look like even more of a high risk, further
worsening your credit report. All the credit card debt on your
report, even if some of it is good, can make you look high risk
for car loans or mortgages – especially if any of those cards
hold high balances. Even worse, that bad credit report can keep
you from renting an apartment or getting a job that requires a
background check.
As tempting as it is to pay with plastic, choose the “debit”
option next time and keep your future in mind. It’s normal to
risk it all when times are tough, but doing so creates more
problems later that can take years with a credit counselor to
fix. Credit card debt has long time risks, but if you use
credit cards wisely, you can build credit that brings rewards
instead.
About the Author: This article provide courtesy of
http://www.debt-removal-guide.com
Source: http://www.isnare.com
By Steve Wilcott
It seems like every time I check my mail there is at least one
or two pre-approved credit card applications. I’m sure you get
them, too. The thing is, you can have terrible credit and still
they flood in. Beware if you just filed bankruptcy because you
will get more of them then you know what to do with!
Credit card debt is all too easy to get into--over and over
again. We don’t feel like we are spending real money until the
bill comes, and then it’s too late. The credit card companies
know how to make it very tempting to fall back on any good
habits we’ve created and just spend away. It’s hard to get away
from, but we have to resist temptation.
When establishing good credit, one of the things we’re told to
do is to get a credit card and then use it to spend wisely.
Experts advise us to pay our bills on time and not to exceed
the credit limit. However, no one really talks to us when we
get that first card about how easily and quickly we hit that
limit, or how easy it is to miss that first monthly payment.
Once you get behind, it can be really hard to catch up.
Oftentimes, credit cards come with introductory interest rates
that are nothing or very low. But many times, those rates soon
change and you can find yourself with a full balance on your
card with an 18 or 20 percent interest rate! That interest rate
can then put you over your limit, if your not paying at least
the minimum payment, now making you susceptible to
over-the-limit fees. Before you know it, you are getting bad
reports on your credit reports for credit card debt on a card
that you haven’t even had very long.
Unfortunately, when times are hard, abusing credit cards is all
too easy. When the economy is bad and cash is tight, you might
find yourself putting your daily living expenses on your credit
cards. If there is any kind of pattern like this in your credit
card spending, it can fill up your credit reports pretty
quickly. When you are not making your payments, the credit card
companies do inquiries to verify your address or other
information. Every time someone makes an inquiry on your credit
report, it makes you look like even more of a high risk, further
worsening your credit report. All the credit card debt on your
report, even if some of it is good, can make you look high risk
for car loans or mortgages – especially if any of those cards
hold high balances. Even worse, that bad credit report can keep
you from renting an apartment or getting a job that requires a
background check.
As tempting as it is to pay with plastic, choose the “debit”
option next time and keep your future in mind. It’s normal to
risk it all when times are tough, but doing so creates more
problems later that can take years with a credit counselor to
fix. Credit card debt has long time risks, but if you use
credit cards wisely, you can build credit that brings rewards
instead.
About the Author: This article provide courtesy of
http://www.debt-removal-guide.com
Source: http://www.isnare.com
Monday, July 23, 2007
Credit Card Processing
Evaluating Credit Card Processing Companies
By Debbie Dragon
There are numerous credit card processing companies to choose
from, each offering different features and fees. Choosing a
company to process your customer's credit card payments can be
a daunting task, and sometimes you'll experience difficulties
both looking for a merchant account provider and then
afterwards- if you make the wrong selection!
Many banks will deny small business applications for merchant
accounts because they don't want to take the risk. Most small
businesses end up going through third party providers who
actually get the merchant account on your behalf; then apply
their own rate structure to your transactions.
If you operate an online business, you'll need a shopping cart
program of some kind- which must work with the system you use
to process credit cards online. Unfortunately, if you go with
a third party shopping cart rather than a custom written one it
may not work with all credit card processing gateways. You
really need to be sure that whatever shopping cart program you
use on your web site works with the merchant account you
ultimately end up using to process customer payments.
Accepting credit cards is not free! You pay the third party
merchant account provider (or the bank if you are able to
secure your own account directly with a bank that provides it)
will charge you fees in exchange for the ability to accept
credit card payments. The fees and rates you pay will vary
depending on many factors, including how long you've been in
business, the type of business you operate, your credit score,
how much of your sales are processed by phone versus online,
and the amount of credit card sales you process each month.
Some providers charge an annual fee in addition to a fee per
transaction, while other providers only charge a percentage of
each transaction processed. Typical rates for small businesses
accepting phone and mail order payments are $0.10 to $0.30 plus
2 to 3% of the transaction amount. If the merchant account
providers you are looking at want to charge over this
percentage, be sure to check out a few others to see if you can
get a lower rate before signing up. Sometimes, your credit
rating will result in your having to pay higher fees- but it's
worth shopping around a little to see if you can get a lower
percentage rate per transaction.
When you're shopping companies looking for the best merchant
account provider, make sure to compare all of the fees to see
how much you're going to end up spending per each sale. You
should also take into consideration what the application fee is
(if any), how much you pay annually, how much you must spend on
equipment needed to set up your account, and whether or not you
must maintain a monthly minimum of sales volume.
Also compare how each merchant account provider allows you to
withdraw your money- can you do it whenever you want or do you
have to do it at specific times of the month or year? How long
will it take to receive your funds once you've requested a
withdrawal or transfer of the money? How does the provider
handle charge backs?
Always read all of the forms and contracts associated with
merchant accounts before you sign anything. Understand the
terms for cancellation and what conditions the provider can
cancel your account, as well.
The process for applying for a merchant account varies
depending on the company, but you may be asked to provide a
photo of your office (even if it's in your home) to verify you
are in the location you say that you are. Some companies will
want to send a representative to photograph your place of
business. Occasionally, you'll be asked to provide a DBA or
business license, your tax returns and profit and loss
statements.
About the Author: This article has been provided courtesy of
Creditor Web, http://www.creditorweb.com .
Source: http://www.isnare.com
By Debbie Dragon
There are numerous credit card processing companies to choose
from, each offering different features and fees. Choosing a
company to process your customer's credit card payments can be
a daunting task, and sometimes you'll experience difficulties
both looking for a merchant account provider and then
afterwards- if you make the wrong selection!
Many banks will deny small business applications for merchant
accounts because they don't want to take the risk. Most small
businesses end up going through third party providers who
actually get the merchant account on your behalf; then apply
their own rate structure to your transactions.
If you operate an online business, you'll need a shopping cart
program of some kind- which must work with the system you use
to process credit cards online. Unfortunately, if you go with
a third party shopping cart rather than a custom written one it
may not work with all credit card processing gateways. You
really need to be sure that whatever shopping cart program you
use on your web site works with the merchant account you
ultimately end up using to process customer payments.
Accepting credit cards is not free! You pay the third party
merchant account provider (or the bank if you are able to
secure your own account directly with a bank that provides it)
will charge you fees in exchange for the ability to accept
credit card payments. The fees and rates you pay will vary
depending on many factors, including how long you've been in
business, the type of business you operate, your credit score,
how much of your sales are processed by phone versus online,
and the amount of credit card sales you process each month.
Some providers charge an annual fee in addition to a fee per
transaction, while other providers only charge a percentage of
each transaction processed. Typical rates for small businesses
accepting phone and mail order payments are $0.10 to $0.30 plus
2 to 3% of the transaction amount. If the merchant account
providers you are looking at want to charge over this
percentage, be sure to check out a few others to see if you can
get a lower rate before signing up. Sometimes, your credit
rating will result in your having to pay higher fees- but it's
worth shopping around a little to see if you can get a lower
percentage rate per transaction.
When you're shopping companies looking for the best merchant
account provider, make sure to compare all of the fees to see
how much you're going to end up spending per each sale. You
should also take into consideration what the application fee is
(if any), how much you pay annually, how much you must spend on
equipment needed to set up your account, and whether or not you
must maintain a monthly minimum of sales volume.
Also compare how each merchant account provider allows you to
withdraw your money- can you do it whenever you want or do you
have to do it at specific times of the month or year? How long
will it take to receive your funds once you've requested a
withdrawal or transfer of the money? How does the provider
handle charge backs?
Always read all of the forms and contracts associated with
merchant accounts before you sign anything. Understand the
terms for cancellation and what conditions the provider can
cancel your account, as well.
The process for applying for a merchant account varies
depending on the company, but you may be asked to provide a
photo of your office (even if it's in your home) to verify you
are in the location you say that you are. Some companies will
want to send a representative to photograph your place of
business. Occasionally, you'll be asked to provide a DBA or
business license, your tax returns and profit and loss
statements.
About the Author: This article has been provided courtesy of
Creditor Web, http://www.creditorweb.com .
Source: http://www.isnare.com
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