Archive for June, 2006

Commercial services buying tips

Saturday, June 10th, 2006

Do you how long does it takes for funds to be transferred to your account? Providers differ on how long it takes for funds to be deposited to your account. Sure you will want to specify whether it is a retail or MOTO transaction, since MOTO transactions usually take substantially longer to clear. Compare variable fees: Check on fees that tend to vary between providers and may be negotiable. Such fees include set-up, cancellation, and monthly minimum. 
Get the complete picture: Once you know all the fees a provider will charge you, figure out what your total cost would be based on your best and worst recent months.  Read the contract carefully: Make sure to read the contract in detail to understand all fees, minimum charges, the term of the agreement, and termination clauses. Some providers will not cover every point and leave it to you to uncover the details.
 

Qualifying for commercial accounts

Thursday, June 8th, 2006

A commercial services provider will want to make sure that you are a legitimate business that will not leave them liable for fraudulent charges, before giving you a merchant account. They will start with a basic background check. This includes a thorough credit history review of the owners or officers listed on the application, in addition to credit references from two to three suppliers. The most important question that providers want answered is whether your business is likely to have a high incidence of chargebacks on your merchant accounts. For the most part, tangible products are considered to be much safer than services. As well, businesses that liberate purchased goods immediately in exchange for payment are viewed as being less risky. Providers will also consider the type of credit card transactions that your company performs before they give you a merchant account. As a general rule, card-present transactions that allow you to swipe the credit card and obtain a signature in person are considered to be much safer than card-absent transactions that take place by phone, by mail or over the Internet.  Being a higher-risk merchant does not necessarily prevent you from getting a merchant account - but it will drive up your costs.  Finally, if you have had merchant accounts in the past, providers will require old statements to better gauge your charge and chargeback volume. Some companies advertise high acceptance rates in an effort to impress - do not be lured; 99% acceptance rates are common among ISOs.  

Different types of credit card processors

Thursday, June 8th, 2006

Need a Credit Card processors? There are several different types of companies you can turn to for credit card processors.
Banks: The banks you use for your business finances should be the first place you contact. Banks allways can be the easiest source to turn to for credit card services; many offer service packages for businesses that include merchant services. Most banks don’t process credit card transactions themselves, though.
Instead, they outsource credit card processing to a third party credit card processors. It can be tough to get approved from this channel, though. Banks are likely to scrutinize your business more closely before deciding whether or not to accept your application.
3-rd Credit Card Processors: Third party credit card processors dedicate themselves to handling credit card processing. As such, they take care of different aspects of the transaction process such as authorization, billing, reporting, and settlement.
For example, Independent Sales Organization:
An independent sales organization (ISO) is essentially a registered credit card merchant broker who represents one or more third party credit card processors. They set up and service credit card merchants, but do not do the actual card processing. ISOs are less selective than banks, but that comes at a somewhat higher price. They are also not strictly regulated the way banks are, so be particularly vigilant when evaluating potential suppliers.
Example: Financial Service Providers: MasterCard and Visa require you to establish a merchant account through an intermediary. However American Express and Discover give you the option of applying directly to them.
Association Small business and trade associations often offer credit card merchant processing at discount prices. They are a particularly good resource if companies in your industry historically have trouble attaining credit card merchant status.

The way to choose a credit card transaction service

Thursday, June 8th, 2006

No doubts, price is an important factor in choosing a credit card transaction provider - but it should not be the only factor. Customer support can be essential - problems in credit card processing can quickly impact your bottom line. The best way to learn about a credit card transaction provider’s level of customer service is to obtain customer referrals from current clients. Request referrals to merchants that are comparable to your company in size and industry. Then ask these important questions: do they have to wait several minutes before reaching a customer support rep? Are their needs serviced as soon as possible? In what way does the credit card transaction provider deal with chargebacks? Also ask the credit card transaction provider about their level of support - do they have phones staffed 24 x 7? Do they charge per incident? If your business will be selling over the Internet and you do not have a secure server that can encrypt credit card information, make sure your credit card transaction provider can offer secure ordering through SSL (secure sockets layer, a widely-used web standard for security). Setting up your own secure site is expensive and technically challenging. 

At least, if you are not using a bank or financial company you recognize, make sure you verify that the company you are investigating is legitimate - there are con artists and scammers who set up fake processing companies just to collect setup fees then vanish.  I advice you to contact the Better Business Bureau to check the company’s status if you are unsure, and if you find a credit card transaction provider on the Web, make sure you get a physical address and phone number.  

 

Mortgage Credit only for You

Thursday, June 8th, 2006

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What about some other tips

Friday, June 2nd, 2006

Do you know, there are two categories of extra payments, about which debtors seem to forget while calculating the cost of credit.

Estimation costs are necessary to determine the amount of credit and to find out whether flat depositing guarantees loan repayment or not.

There’s also a realtor’s fee, of course. Banks prefer to cooperate only with familiar companies. If one falls as a victim of fraud, it’ll be almost impossible to get money back from him in a legal way.

Usually estimators, realtors and insurance companies don’t act under the bank’s supervision. But often there’s an agreement between them and each gets the according profit. There are some advantages for you as well: no red tape and no need to coordinate all your actions with different institutions. When applying for credit you can specify which realtor and insurance company your bank works with so that to decide whether these conditions suit you. Today in terms of tough competition banks try to offer most comfortable conditions for their customers.

However, you should realize that the mission of any bank is profit earning. For the sake of security banks have to take measures to guarantee at least repayment of the given amount and to reduce the risk factor. Please don’t think that banks try to cheat their customers this way. It is the client who makes final decision.

Some words about Insurance and Banks

Friday, June 2nd, 2006

Do you know, that Debtor’s life insurance can be one of the credit repayment securities. Generally, insurance money complies with the sum given on credit. This is quite reasonable for the banks, as banks will get its money back even if the debtor dies or looses his/her ability to work. 

Mortgaged property insurance can serve as an extra security for banks. This will be of an advantage in case of breakdown of the mortgaged property. According to the insurance contract it’s the banks that get the insurance money, same with life insurance case.

Registration is always registration

Friday, June 2nd, 2006

I can say for sure that the most popular way to guarantee credit repayment is mortgage on the security of a flat one is going to buy and which is already one’s property. Mortgage loan is legal on the condition that real estate is depositor’s property.

Otherwise, the contract can simply stay unregistered. In general, for mortgage contract registration one has to provide the according body with the contract of purchase, property certificate, flat layout plan, mortgage contract itself and the credit contract.

As a rule, banks offer their service in registering your mortgage contract. Well you have choice. If this service is free of charge, you’d better agree. You are asked to pay extra? Then, see how much real costs will be and after that make a decision.

Extra mortgage costs

Friday, June 2nd, 2006

Many debtors get surprised that apart from interest they are to bear some extra costs. First of all, let’s determine what we consider to be extra costs. Usually, these are charges for credit and account maintenance, debtor’s life insurance, notary’s and estimator’s fees, as well as realtor’s. Besides, you’ll have to pay for mortgage contract registration and flat ownership legalization.

Each potential debtor looks for a reasonable credit interest rate. However, low interest rate doesn’t guarantee reasonable credit terms. With some banks you still have to pay for such services as consideration of your application, opening of an account and its maintenance. And this is in spite of tough competition in the sphere.  You are most likely to be confronted with this phenomenon in those banks that have a lower credit interest rate.