Accepting Credit Cards For Your Online Business
By
Keith Baxter
Did you know that one of the best ways to increase sales for any online or offline business is to offer your customers the convenience of paying by credit card? As a merchant, you have several options available when it comes to becoming part of the credit card acceptance and processing chain. Here's a quick guide to get you thinking.
Merchant Accounts
If you want your online business to be capable of accepting credit card payments, you must have some type of merchant account. A merchant account allows you to take credit cards as forms of payment in a safe and secure manner.
You apply for a merchant account by filling out an application and signing a fee agreement. Unfortunately, navigating the merchant account maze can be difficult if you do not have financial experience. There are many different companies out there, and they all have a deal to offer. But before you sign up for anything, read the fine print.
The three main fees you need to look for are the set-up fees, the percentage you will pay for each transaction, and the monthly fees. All of these fees need to be taken into consideration. One company may advertise low set up fees, but they may take a higher percentage of the sale or the monthly fees may be considerably higher.
There are two types of merchant accounts, your own personal merchant account or a third party merchant account. A bank will open your own account and although they may have higher initial opening costs, these accounts generally have a lower transaction fee (what you pay them for each transaction).
Deciding which of these two types will work best for you is a personal decision, but if your business is established and thriving, the bank-based merchant account will probably work best.
Third Party Merchant Account Providers
There are a large number of providers out there, all offering what is sure to be the best deal ever. Let's evaluate some of the top providers and see what it is they really offer.
2CheckOut (2CO) offers instant acceptance for new merchants and has a $49 setup fee, no monthly fees, and an average transaction fee. The account offers a built-in shopping cart and accepts one-time or recurring payments. They accept both physical and digital goods merchants.
ClickBank offers a one-time setup fee along with a transaction fee of $1.00 plus 7.5% of the sale price. There is no monthly fee. They will also handle tracking and paying your affiliates automatically. They only accept merchants selling digital goods.
PayPal has no setup fee and a sliding transaction fee, all of them very low, based upon sales volume. They accept both physical and digital goods merchants and have various methods for you to tightly integrate their interface with your site. Subscriptions and one-time payments can be processed.
This is just a general overview of some of your payment options. Before you decide, do some in depth research and find the account that will work best with your company's needs.
About the author:
For more information and resources on credit cards, please visit: http://www.consumer-news.net
Saturday, 10 March 2007
7 Facts on Mortgage Refinancing
By
Chris Edison
Getting a refinance on your mortgage is common practice nowadays due to the drop in interest rates and the receptiveness of borrowers toward the idea of refinancing. Although many have vouched for its benefits, house owners should evaluate their personal preferences, financial standing, and current mortgage status and compare these with the various options available before planning their next move.
There are many facts surrounding the concept of refinancing and this article will provide you with an insight of important aspects which you need to know in order to make an informed decision. Refinancing your mortgage is for the long-term and thus needs to be a choice that is thoroughly considered.
1. Penalty Costs
The process of refinancing basically means paying off your current mortgage and obtaining another mortgage at a different interest rate (usually at an adjustable rate) and loan term. This causes penalty costs to be imposed on your current mortgage by your current lender, as you have opted to pay off your loan earlier than agreed upon. Occasionally, depending on the status of your current loan, penalties incurred may be higher than the cost savings obtained from refinancing your mortgage, therefore making the idea of refinancing no longer attractive.
2. Savings on monthly repayments
When you refinance your mortgage, you may most likely switch to a new mortgage structure that will benefit you in the long run, especially with lower monthly repayments. With the availability of Adjustable Rate Mortgages, interests incurred are relatively lower than the traditional Fixed Rate Mortgages, which has been incentive enough for home owners to switch their mortgage loan plans. However, although interest rates may seem to be lower at first glance, home buyers should practice due diligence in tabulating the actual amounts paid over the long term in comparison with their current mortgage repayments.
3. Transactions costs
As with any mortgage transactions, a refinancing exercise will involve transaction costs such as attorney fees, points, appraisal fees, inspection fees and prepayment penalties. All these hike up the cost of refinancing, which need to be balanced out with the cost savings obtained from switching loans in the first place. As a rule of thumb, if you plan to stay in your current property for the long-term, transaction costs will be offset with savings in repayment amounts over the long-run. Therefore, refinancing will then be a good option for you.
4. Tax deduction possible
Refinancing may help you regain tax deductions on interest if you have already used up your allocated amount for tax deductions. Therefore, with a new mortgage, you will be able to deduct interests paid from your taxable income, thus helping to reduce your taxes payable.
5. Get cash out of your equity
If you have paid up most of your outstanding equity, refinancing will be a good way for you to acquire cash out of your high value equity, incorporating increases in the market value of your property as well. This way, you will have the flexibility to use the extra cash for children education, short term debt repayments or renovations.
6. Increase your home equity
On the flip side, refinancing your mortgage can also work for you if you decide to pay more on monthly repayments and pay off your home equity within a shorter period of time. Another benefit of a shorter loan term is the cost savings gained from lesser total interests paid to the lender.
7. Alternatives to refinancing
Refinancing may not always be the only option for everyone. Other financing products such as a home equity line, allows you to keep your current mortgage but instead have the flexibility to withdraw up to a certain percentage of the current value of your home equity, minus the unpaid portion of your equity. Interests are only charged on the amount withdrawn and not on the approved line of credit. Another option would be to take up a second mortgage, which will be based on a shorter loan term, but with higher interest rates.
About the author:
Chris Edison is a successful author and regular contributor to http://www.mortgage-traps.coma home mortgage loan information site, that reveals mortgage traps for home buyers.
By
Chris Edison
Getting a refinance on your mortgage is common practice nowadays due to the drop in interest rates and the receptiveness of borrowers toward the idea of refinancing. Although many have vouched for its benefits, house owners should evaluate their personal preferences, financial standing, and current mortgage status and compare these with the various options available before planning their next move.
There are many facts surrounding the concept of refinancing and this article will provide you with an insight of important aspects which you need to know in order to make an informed decision. Refinancing your mortgage is for the long-term and thus needs to be a choice that is thoroughly considered.
1. Penalty Costs
The process of refinancing basically means paying off your current mortgage and obtaining another mortgage at a different interest rate (usually at an adjustable rate) and loan term. This causes penalty costs to be imposed on your current mortgage by your current lender, as you have opted to pay off your loan earlier than agreed upon. Occasionally, depending on the status of your current loan, penalties incurred may be higher than the cost savings obtained from refinancing your mortgage, therefore making the idea of refinancing no longer attractive.
2. Savings on monthly repayments
When you refinance your mortgage, you may most likely switch to a new mortgage structure that will benefit you in the long run, especially with lower monthly repayments. With the availability of Adjustable Rate Mortgages, interests incurred are relatively lower than the traditional Fixed Rate Mortgages, which has been incentive enough for home owners to switch their mortgage loan plans. However, although interest rates may seem to be lower at first glance, home buyers should practice due diligence in tabulating the actual amounts paid over the long term in comparison with their current mortgage repayments.
3. Transactions costs
As with any mortgage transactions, a refinancing exercise will involve transaction costs such as attorney fees, points, appraisal fees, inspection fees and prepayment penalties. All these hike up the cost of refinancing, which need to be balanced out with the cost savings obtained from switching loans in the first place. As a rule of thumb, if you plan to stay in your current property for the long-term, transaction costs will be offset with savings in repayment amounts over the long-run. Therefore, refinancing will then be a good option for you.
4. Tax deduction possible
Refinancing may help you regain tax deductions on interest if you have already used up your allocated amount for tax deductions. Therefore, with a new mortgage, you will be able to deduct interests paid from your taxable income, thus helping to reduce your taxes payable.
5. Get cash out of your equity
If you have paid up most of your outstanding equity, refinancing will be a good way for you to acquire cash out of your high value equity, incorporating increases in the market value of your property as well. This way, you will have the flexibility to use the extra cash for children education, short term debt repayments or renovations.
6. Increase your home equity
On the flip side, refinancing your mortgage can also work for you if you decide to pay more on monthly repayments and pay off your home equity within a shorter period of time. Another benefit of a shorter loan term is the cost savings gained from lesser total interests paid to the lender.
7. Alternatives to refinancing
Refinancing may not always be the only option for everyone. Other financing products such as a home equity line, allows you to keep your current mortgage but instead have the flexibility to withdraw up to a certain percentage of the current value of your home equity, minus the unpaid portion of your equity. Interests are only charged on the amount withdrawn and not on the approved line of credit. Another option would be to take up a second mortgage, which will be based on a shorter loan term, but with higher interest rates.
About the author:
Chris Edison is a successful author and regular contributor to http://www.mortgage-traps.coma home mortgage loan information site, that reveals mortgage traps for home buyers.
15 important credit card terms to consider before buying a credit card!!
5 important credit card terms to consider before buying a credit card!!
By
Thomas Lindstrøm
A credit card is a form of borrowing that often involves charges. Credit terms and conditions affect your overall cost.
So it's wise to compare terms and fees before you agree to open a credit or charge card account. The following are some important terms to consider that generally must be disclosed in credit card applications or in solicitations that require no application. You also may want to ask about these terms when you're shopping for a card.
If you don't understand the language, credit card offers and statements could lead you to deep debt -- or at least furious frustration. For the big scoop on the fine print, here's what these frequently used credit card terms mean.
1.Average daily balance -- This is the method by which most credit cards calculate your payment due. An average daily balance is determined by adding each day's balance and then dividing that total by the number of days in a billing cycle. The average daily balance is then multiplied by a card's monthly periodic rate, which is calculated by dividing the annual percentage rate by 12. A card with an annual rate of 18 percent would have a monthly periodic rate of 1.5 percent. If that card had a $500 average daily balance it would yield a monthly finance charge of $7.50.
2.APR(Annual percentage rate) -- A yearly rate of interest that includes fees and costs paid to acquire the loan. Lenders are required by law to disclose the APR. The rate is calculated in a standard way, taking the average compound interest rate over the term of the loan, so borrowers can compare loans.
3.Balance transfer -- The process of moving an unpaid credit card debt from one issuer to another. Card issuers sometimes offer teaser rates to encourage balance transfers coming in and balance-transfer fees to discourage them from going out.
4.Cash-advance fee -- A charge by the bank for using credit cards to obtain cash. This fee can be stated in terms of a flat per-transaction fee or a percentage of the amount of the cash advance. For example, the fee may be expressed as follows: "2%/$10". This means that the cash advance fee will be the greater of 2 percent of the cash advance amount or $10.
The banks may limit the amount that can be charged to a specific dollar amount. Depending on the bank issuing the card, the cash advance fee may be deducted directly from the cash advance at the time the money is received or it may be posted to your bill as of the day you received the advance. The cost of a cash advance is also higher because there generally is no grace period. Interest accrues from the moment the money is withdrawn.
5.Card holder agreement -- The written statement that gives the terms and conditions of a credit card account. The cardholder agreement is required by Federal Reserve regulations. It must include the Annual Percentage Rate, the monthly minimum payment formula, annual fee if applicable, and the cardholder's rights in billing disputes. Changes in the cardholder agreement may be made, with written advance notice, at any time by the issuer. Rules for imposing changes vary from state to state, but the rules that apply are those of the home state of the issuing bank, not the home state of the cardholder.
6.Finance charge -- The charge for using a credit card, comprised of interest costs and other fees.
7.Floor -- The minimum rate possible on a variable-rate loan or line of credit, after any initial introductory rate period. For example, on a credit card with the Prime rate as its index, no matter how low the Prime rate drops, the rate on the line may never decrease below the stated rate floor.
8.Free Period -- Also called a "grace period," a free period lets you avoid finance charges by paying your balance in full before the due date. Knowing whether a card gives you a free period is especially important if you plan to pay your account in full each month. Without a free period, the card issuer may impose a finance charge from the date you use your card or from the date each transaction is posted to your account. If your card includes a free period, the issuer must mail your bill at least 14 days before the due date so you'll have enough time to pay.
9.Minimum payment -- The minimum amount a cardholder can pay to keep the account from going into default. Some card issuers will set a high minimum if they are uncertain of the cardholder's ability to pay. Most card issuers require a minimum payment of two percent of the outstanding balance.
10.Over-the-limit fee -- A fee charged for exceeding the credit limit on the card.
11.Periodic rate -- The interest rate described in relation to a specific amount of time. The monthly periodic rate, for example, is the cost of credit per month; the daily periodic rate is the cost of credit per day.
12.Pre-approved -- A credit card offer with "pre-approved" only means that a potential customer has passed a preliminary credit-information screening. A credit card company can spurn the customers it invited with "pre-approved" junk mail if it doesn't like the applicant's credit rating.
13.Secured card -- A credit card that a cardholder secures with a savings deposit to ensure payment of the outstanding balance if the cardholder defaults on payments. It is used by people new to credit, or people trying to rebuild their poor credit ratings.
14.Teaser rate -- Often called the introductory rate, it is the below-market interest rate offered to entice customers to switch credit cards or lenders.
15.Variable interest rate -- Percentage that a borrower pays for the use of money, and which moves up or down periodically based on changes in other interest rates.
I hope this terms will help you out a little when choosing your next credit card.
About the author:
-Thomas Lindstrøm-
owner of:
http://www.greatestcreditcardsite.com
http://www.online-realization.com
By
Thomas Lindstrøm
A credit card is a form of borrowing that often involves charges. Credit terms and conditions affect your overall cost.
So it's wise to compare terms and fees before you agree to open a credit or charge card account. The following are some important terms to consider that generally must be disclosed in credit card applications or in solicitations that require no application. You also may want to ask about these terms when you're shopping for a card.
If you don't understand the language, credit card offers and statements could lead you to deep debt -- or at least furious frustration. For the big scoop on the fine print, here's what these frequently used credit card terms mean.
1.Average daily balance -- This is the method by which most credit cards calculate your payment due. An average daily balance is determined by adding each day's balance and then dividing that total by the number of days in a billing cycle. The average daily balance is then multiplied by a card's monthly periodic rate, which is calculated by dividing the annual percentage rate by 12. A card with an annual rate of 18 percent would have a monthly periodic rate of 1.5 percent. If that card had a $500 average daily balance it would yield a monthly finance charge of $7.50.
2.APR(Annual percentage rate) -- A yearly rate of interest that includes fees and costs paid to acquire the loan. Lenders are required by law to disclose the APR. The rate is calculated in a standard way, taking the average compound interest rate over the term of the loan, so borrowers can compare loans.
3.Balance transfer -- The process of moving an unpaid credit card debt from one issuer to another. Card issuers sometimes offer teaser rates to encourage balance transfers coming in and balance-transfer fees to discourage them from going out.
4.Cash-advance fee -- A charge by the bank for using credit cards to obtain cash. This fee can be stated in terms of a flat per-transaction fee or a percentage of the amount of the cash advance. For example, the fee may be expressed as follows: "2%/$10". This means that the cash advance fee will be the greater of 2 percent of the cash advance amount or $10.
The banks may limit the amount that can be charged to a specific dollar amount. Depending on the bank issuing the card, the cash advance fee may be deducted directly from the cash advance at the time the money is received or it may be posted to your bill as of the day you received the advance. The cost of a cash advance is also higher because there generally is no grace period. Interest accrues from the moment the money is withdrawn.
5.Card holder agreement -- The written statement that gives the terms and conditions of a credit card account. The cardholder agreement is required by Federal Reserve regulations. It must include the Annual Percentage Rate, the monthly minimum payment formula, annual fee if applicable, and the cardholder's rights in billing disputes. Changes in the cardholder agreement may be made, with written advance notice, at any time by the issuer. Rules for imposing changes vary from state to state, but the rules that apply are those of the home state of the issuing bank, not the home state of the cardholder.
6.Finance charge -- The charge for using a credit card, comprised of interest costs and other fees.
7.Floor -- The minimum rate possible on a variable-rate loan or line of credit, after any initial introductory rate period. For example, on a credit card with the Prime rate as its index, no matter how low the Prime rate drops, the rate on the line may never decrease below the stated rate floor.
8.Free Period -- Also called a "grace period," a free period lets you avoid finance charges by paying your balance in full before the due date. Knowing whether a card gives you a free period is especially important if you plan to pay your account in full each month. Without a free period, the card issuer may impose a finance charge from the date you use your card or from the date each transaction is posted to your account. If your card includes a free period, the issuer must mail your bill at least 14 days before the due date so you'll have enough time to pay.
9.Minimum payment -- The minimum amount a cardholder can pay to keep the account from going into default. Some card issuers will set a high minimum if they are uncertain of the cardholder's ability to pay. Most card issuers require a minimum payment of two percent of the outstanding balance.
10.Over-the-limit fee -- A fee charged for exceeding the credit limit on the card.
11.Periodic rate -- The interest rate described in relation to a specific amount of time. The monthly periodic rate, for example, is the cost of credit per month; the daily periodic rate is the cost of credit per day.
12.Pre-approved -- A credit card offer with "pre-approved" only means that a potential customer has passed a preliminary credit-information screening. A credit card company can spurn the customers it invited with "pre-approved" junk mail if it doesn't like the applicant's credit rating.
13.Secured card -- A credit card that a cardholder secures with a savings deposit to ensure payment of the outstanding balance if the cardholder defaults on payments. It is used by people new to credit, or people trying to rebuild their poor credit ratings.
14.Teaser rate -- Often called the introductory rate, it is the below-market interest rate offered to entice customers to switch credit cards or lenders.
15.Variable interest rate -- Percentage that a borrower pays for the use of money, and which moves up or down periodically based on changes in other interest rates.
I hope this terms will help you out a little when choosing your next credit card.
About the author:
-Thomas Lindstrøm-
owner of:
http://www.greatestcreditcardsite.com
http://www.online-realization.com
10 Tips for Using Less Gas and Saving More Money
By
Danek Kaus
The hurricane that has devastated so many lives has created a huge spike in gasoline prices around the country, even in areas that are not directly affected by the crisis.
With this in mind, here are some ways that you can reduce your gas consumption, and thereby spend less money at the pump. At the same time, you’ll also be helping the environment by putting fewer emissions into the air.
1. Avoid idling as much as possible. Modern engines do not need to be warmed up. In fact, they warm up better by driving them slowly, under a light load. Instead of using the drive-up window at the local fast food joint, consider going inside instead. If you do use the pick-up window, turn off the engine while you are in line. It takes less gas to restart a warmed-up engine than it does to idle for 30 seconds or more.
2. Accelerate and decelerate slowly. Don’t stomp on the gas peddle when the light turns green. Try to anticipate traffic flow and drive accordingly, keeping safety in mind at all times.
3. Lighten the load. If you have a bunch of stuff in your car that you don’t need with you, store it somewhere else. The more your car weighs, the more gas the engine must burn.
4. Combine trips. Try to run all your errands at one time. Planning ahead for what you need to buy and do can save a lot of trips and miles.
5. Check tire pressure. Improperly inflated tires create drag and reduce fuel efficiency by as much as 2%. Properly inflated are safer and they last longer.
6. Use the right gas. Check your owner’s manual for the right grade of gas for your car. It is a waste of money to use a higher grade then recommended.
7. Close the gas cap properly. Make sure the seal is tight. If you buy a replacement cap, make sure it is the right one for your make and model.
8. Change the air filter regularly. A clogged filter reduces mileage.
9. Change the spark plugs. Make sure to install new ones at the appropriate intervals to improve mileage.
10. Drive a fuel-efficient vehicle. If you have more than one vehicle, drive the one with the best mileage rating whenever possible.
I would like to close by asking everyone who reads this article to please give whatever you can to relief agencies such as The Red Cross and The Salvation Army, or one of many other worthy organizations that are working hard to bring aid and comfort to the victims of Hurricane Katrina.
Although it hurts to pay more at the pump, it can’t compare with the agony that so many in the Gulf Coast are enduring.
Thank you.
About the author:
Danek S. Kaus is a freelance journalist who has published hundreds of articles on business, personal development and consumer issues. He is the co-author of the new book, “Power Persuasion: Using Hypnotic Influence to Win in Life, Love and Business.” For information, visit power-persuasion.com/book
Want more gas saving tips and other ideas on how to win in life? Read The Winner's Edge at http:/winnersedge.blogspot.com
By
Danek Kaus
The hurricane that has devastated so many lives has created a huge spike in gasoline prices around the country, even in areas that are not directly affected by the crisis.
With this in mind, here are some ways that you can reduce your gas consumption, and thereby spend less money at the pump. At the same time, you’ll also be helping the environment by putting fewer emissions into the air.
1. Avoid idling as much as possible. Modern engines do not need to be warmed up. In fact, they warm up better by driving them slowly, under a light load. Instead of using the drive-up window at the local fast food joint, consider going inside instead. If you do use the pick-up window, turn off the engine while you are in line. It takes less gas to restart a warmed-up engine than it does to idle for 30 seconds or more.
2. Accelerate and decelerate slowly. Don’t stomp on the gas peddle when the light turns green. Try to anticipate traffic flow and drive accordingly, keeping safety in mind at all times.
3. Lighten the load. If you have a bunch of stuff in your car that you don’t need with you, store it somewhere else. The more your car weighs, the more gas the engine must burn.
4. Combine trips. Try to run all your errands at one time. Planning ahead for what you need to buy and do can save a lot of trips and miles.
5. Check tire pressure. Improperly inflated tires create drag and reduce fuel efficiency by as much as 2%. Properly inflated are safer and they last longer.
6. Use the right gas. Check your owner’s manual for the right grade of gas for your car. It is a waste of money to use a higher grade then recommended.
7. Close the gas cap properly. Make sure the seal is tight. If you buy a replacement cap, make sure it is the right one for your make and model.
8. Change the air filter regularly. A clogged filter reduces mileage.
9. Change the spark plugs. Make sure to install new ones at the appropriate intervals to improve mileage.
10. Drive a fuel-efficient vehicle. If you have more than one vehicle, drive the one with the best mileage rating whenever possible.
I would like to close by asking everyone who reads this article to please give whatever you can to relief agencies such as The Red Cross and The Salvation Army, or one of many other worthy organizations that are working hard to bring aid and comfort to the victims of Hurricane Katrina.
Although it hurts to pay more at the pump, it can’t compare with the agony that so many in the Gulf Coast are enduring.
Thank you.
About the author:
Danek S. Kaus is a freelance journalist who has published hundreds of articles on business, personal development and consumer issues. He is the co-author of the new book, “Power Persuasion: Using Hypnotic Influence to Win in Life, Love and Business.” For information, visit power-persuasion.com/book
Want more gas saving tips and other ideas on how to win in life? Read The Winner's Edge at http:/winnersedge.blogspot.com
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