Credit cards can be helpful for the unexpected expenses that come up once in a while. However, there are some credit card pitfalls that can make your financial situation worse off than before. Credit cards are a leading factor in most cases of severe debt. Keep yourself in a good financial situation by avoiding these credit card mistakes.
Treating Your Credit Like Free Money
Credit cards should be used for emergencies, not luxuries. Take the cost into careful consideration before you purchase anything with your card. Ask yourself if it’s something that you truly need and how you will pay it off. If you use your card for a large purchase, devote every spare cent to paying off the balance. Remember that if you can’t afford to pay off the purchase within a reasonable timeframe, you can’t really afford it at all.
Not Examining Your Statement
It’s easy to forget how much money you spend with a credit card unless you look at your statement every month. In addition, you need to see if any fraudulent charges have been made. Credit card companies do their best to combat identity thieves, but credit card fraud still occurs from time to time. When it does, it’s crucial that you dispute the purchases as quickly as possible.
Paying Off One Card With Another
Some people think that if they can get one more credit card to pay off their debts, they can get back on their feet. The problem is that this strategy only replaces old debt with new debt. Furthermore, you can end up even worse off than before if the new card does not give you enough credit to pay off your old debts.
Thinking That Introductory Rates Last Forever
Credit card advertisements draw a lot of attention to their low introductory rates. Many people get so excited over this prospect that they don’t read the fine print. The key word here is “introductory”. Once that introductory rate expires, you can be trapped with exorbitant interest and fees.
There are plenty of reasons to have a credit card. Just be sure that your spending habits don’t put you into serious debt. By sidestepping these mistakes, you’ll do a great deal to prevent credit card costs from getting out of hand.
Apple is known globally as an innovator in technology and beyond. With the release of their highly anticipated iPhone 6 on September 19th, comes a new form of mobile payment called Apple Pay. This groundbreaking technology will allow users to checkout at millions of merchants worldwide just by scanning their iPhone. Users’ credit or debit card information is stored securely within iPhone’s passbook. Utilizing iPhone’s Touch ID system, Apple Pay is a safe and easy way to complete transactions.
With Apple Pay, digging around for your credit or debit card is a thing of the past. Retailers will have a small device on their card reader that will allow shoppers to simply place the back of their iPhone near it, just as they would swipe a card. The iPhone will then give off a subtle vibration when the payment has been accepted. All transactions will be kept completely private, as the Apple Pay system will not store receipts electronically.
Using iPhone’s original Touch ID technology, Apple Pay is a super secure way to submit payment. The home button on the iPhone reads its owner’s unique fingerprint, eliminating fraud. Users will no longer need to worry about stolen credit or debit cards, as their fingerprint is one of a kind. In addition, users’ data is never stored on cloud-based systems. This makes data even more secure than a standard debit or credit card.
Apple Pay will revolutionize the way consumers and merchants interact. With traditional plastic debit and credit cards falling prey to data hackers more and more, mobile payment is the way of the future. Using your one of a kind fingerprint will keep data thieves at bay.
Since so many people have multiple credit or debit cards, searching for the right one at the right time can be a pain. Apple Pay stores users’ cards in the Passbook app, meaning you will never have to worry about using the wrong one. In-app purchases can also be made with Apple Pay, making the App Store more streamlined and convenient than ever.
Apple Pay is easy to use, secure, and convenient for all occasions. Always on the pulse of technology trends, the iPhone 6 and iPhone 6 Plus will begin a mobile payment revolution that is sure to be felt world wide. Using cutting edge tech tailored to each individual user, Apple Pay is a game changer that is sure to impress.
Mobile credit card processing is a relatively new technology that has a lot to offer to both businesses and consumers. However, there are already a number of myths about mobile processing technology. Business people and others who are interested in accepting payments via a mobile device need to take the time to learn the truth about four of the most popular myths about mobile processing in order to determine whether or not it is the right choice for their personal situation.
Myth #1 – Mobile Processing Has High Fees
As with any type of credit card transaction, there are fees involved in accepting credit card payments via a mobile device. However, while the cost of a mobile transaction is generally more than the cost of a tradition credit card transaction, there is typically very little difference. For most businesses, the slight additional charge of mobile processing will be more than made up by the additional sales gained and the time savings due to the convenience of mobile transaction completion.
Myth #2 – Mobile Processing Requires Expensive Equipment
Mobile processing does not require expensive equipment. In fact, the equipment needed to accept mobile processing is often less costly than traditional processing. This is due to most processors using smartphones or other existing devices to handle the transaction. A simple and inexpensive card reader is all that people need to purchase to start accepting credit cards over mobile devices. In many cases, there is no charge for the card reader or the cost of the reader will be refunded to the purchaser over time.
Myth #3 – Mobile Processing Is Complicated
While mobile credit card processing may seem complicated, it is actually very simple. Once the reader is attached and the software is downloaded to the mobile device, the process of swiping a card and completing a transaction is very simple. The completion of credit card payments via mobile devices is as easy as a traditional credit card transaction completed at a cash register. The customer completes the transaction by signing their name or through the use of a PIN number.
Myth #4 – Mobile Processing Is Not Secure
Though many people worry about the safety of mobile processing, there is little difference between the safety of mobile credit card processing and traditional fixed credit card processing machines. Mobile processors use encryption and other technologies to keep card numbers and other personal information safe from hackers and others who might try to steal the information.
Business owners today are reliant on credit card processing services to complete their business transactions. Many consumers prefer to pay at brick and mortar locations with credit cards, and credit cards or debit cards are a necessary format to use for e-commerce transactions. However, many business owners complain about the high cost of credit card processing services, and you may be looking for a way to reduce this part of your overhead. There are a few tips to follow to help you save money in this area.
Understand the Fee Structure
The fee structure of credit card processing services can vary from company to company. Some, for example, may have a per transaction fee, and others may charge a percentage of the total sale. This is further complicated by the fact that some have a sliding or adjustable scale. For example, you may be charged a flat fee for a certain number of transactions per month, but an additional fee may be imposed when your number of transactions exceeds this amount. As another example, the percentage you pay of the total sale may adjust based on the actual dollar amount of the sale. For instance, you may pay a lower percentage for more expensive transactions.
Review Your Transactions
Because the fee structure can vary significantly from provider to provider, it is important to understand the nature of your transactions. Your venue may have numerous transactions per day that are just a few dollars each, or you may only have a couple of transactions per week that have a very high dollar amount. Consider the average number of transactions you complete during a month, and consider the average dollar amount of these transactions. With this information, you will be able to better determine the fee structure that is most cost-effective for your company.
Shop Around for the Best Rates
If your company is like many others, the number of transactions and the average dollar amount per transaction can fluctuate over time. Because of this, you should get into the habit of completing the above steps periodically. Then, shop around for the best rates every couple of months based on the current fees and types of transactions you are completing. This will help you to avoid paying higher fees than necessary.
Credit card processing services are important in the business world today, but the fees can be expensive. When you follow these tips regularly, you will be taking a step to reduce your overhead.
Mobile credit card processing is a convenient, simple way to complete business transactions. Individuals and businesses alike can benefit from this service. With the majority of business transactions using credit cards, having a mobile processor is essential. There are certain professions that find it incredibly beneficial to use this service and for many reasons.
One profession that uses mobile credit card processing creatively are those in independent sales. Many artists, farmers, and craftspeople use mobile card processors at the shows, flea markets and fairs where they conduct much of their business. If their sales were limited to cash only, this would eliminate much of their sales opportunities. The ability to provide the choice to use a credit card increases the possibilities for big sales.
Another type of profession that uses mobile credit card processors are service industry individuals. From mobile dog groomers to taxi drivers, those in service receive many benefits when they use this service. For one thing, using credit cards is safer that carrying cash. Potential thieves will not benefit much from mugging someone working primarily with credit. Another benefit is convenience. Not worrying about having correct change and keeping track of profit with each transaction is a stress reliever. Using a mobile card processor may even increase the tips received on a service call. People won’t have to worry about having the extra cash for a tip if they can just add it on to their total when paying by card. Professionals such as hair stylists can keep their own sales separate from the other professionals at their salon by using their own individual processor which may help them keep track of how much they are making.
Those individuals and business owners that conduct online sales understand the importance of having a reliable card processing service that helps them conduct their online business. The card processing company acts as a middle man doing the collecting and processing the financial information in a secure and accurate way. Organizations putting together activities such as charity funds or marathon races can have participants pay using the card online rather than showing up with cash that needs to be physically deposited.
Our society is mobile and convenience based. The use of mobile credit card processors is beneficial in many ways and countless professionals are finding creative ways to capitalize on the opportunity to take their business anywhere.
Accepting credit card payments at your local event can make it easier to market and sell your products. Through mobile credit card processing, you can accept and authorize payments at local events with the added options of sending email receipts to your customers. To ensure a smooth event, you must ensure that you can accept payments from customers interested in your products and services.
How Mobile Credit Card Processing Works?
Smartphones and tablets are increasingly being used for processing payments. One option is to manually enter credit card information into the mobile merchant account. The other option is to purchase a small hardware that collects information from swiped cards.
Service fee for mobile merchant account varies with provider. While the apps are offered for free, service providers usually charge a percentage of the transaction. When selecting a mobile merchant, you must consider security options to protect your sales. It is best to sign up for a reputable mobile merchant service.
1. Collect and enter credit card information via the mobile merchant account.
2. Authorize the payment. Wait for the merchant account to scan the credit card information that you provide. The processor will then charge the account.
3. Email receipt to the customer.
Here are some tips for mobile credit card processing that can make your event successful:
Tip 1: Charge Mobile Device
Keep your mobile device fully charged. As you intend to process payments via a mobile device or tablet computer, it is important to keep the device charged. You can use intervals during the event to plug in the charge and restore device power.
Tip 2: Train Employees
Train employees prior to the event. The event is a busy day that leaves no time for training. As such, your employees must learn how to process credit card payments before the event day. Make sure that everyone handling the sales knows how to process payments, send receipts and issue refunds.
Tip 3 Inform Your Customers
The ability to accept payments via mobile devices proves immensely beneficial for an event. However, your customers may not be aware of this payment service. As such, you should inform the attendees about the service if you want it to be effective. You can also display a professional sign that informs customers about the mobile payment options that let them purchase products right at the booth without the need for cash.
Tip 4 Order Extra Inventory
If you are hosting the first event using credit card processing, you should consider ordering some extra inventory. You’ll be surprised at the boost in sales that can be realized by virtue of simplified payment options.
With the Internet playing such a major part of our personal and business worlds, credit cards are used more than ever. Small business owners realize that credit card processing services are a necessity if they’re to remain competitive, which is necessary to be successful both nationally and globally. Success can be hampered if they don’t avoid making some common mistakes. Here are the six most common mistakes small business owners make.
Not Understanding the Terms and Conditions of the Contract
You may understand the terms and conditions of your business, but that doesn’t mean you understand the terms and conditions set by the credit card processing service. Read the fine print carefully so that you know what you’re signing. Otherwise, you may end up paying out more than you anticipated.
Not Noticing Rate Fluctuations
The net profit you make can be drastically decreased if you have a rate increase that you’re not aware of. Read your monthly statements, and be aware of what you’re paying and for what.
Being Unaware of What’s Covered Under Additional Fees
Don’t ever make the mistake of thinking additional fees don’t matter because they’re minimal. If there are tons of “additional” fees that you didn’t expect, you can easily find that credit card processing is not as lucrative as you hoped. Using a credit card processor is necessary in today’s ecommerce business but paying a ton of fees is not.
Not Knowing What Volume is Required
Many credit card processing services will offer you great rates and discounts but ONLY if you meet a certain number of sales each month. Pay attention to what that number may be or look for a company that doesn’t require a certain volume commitment.
Failure to Shop Around For the Best Deal
You may be eager to get your credit card processing up and running so you don’t miss any potential sales. That doesn’t mean, however, that you should jump on the first processing service you find. Shop around, ask questions and don’t be afraid to negotiate for the best deal.
Not Being Aware of Special Rules for the Military
There are certain laws that mandate what type and amount of fees and interest can be charged to military personnel who are deployed. Be aware of these laws to avoid embarrassment and loss of customers. In addition, if they’re laws, there may also be penalties for not following them.
When running a company, one must accept credit cards. Without a doubt, when doing so, an entrepreneur can make more money and bring in more clients. With this in mind, it’s wise to use a merchant processing account. However, the costs can add up quickly. Here are four easy ways to save on merchant processing fees.
Negotiate: First and foremost, when signing up for a credit card processing account, it’s wise to negotiate the fees. Think about it, when running a business, merchant accounts are easy to find. On the other hand, providers will, obviously, vie for a person’s business. For this reason, before signing any paperwork, a smart and savvy entrepreneur needs to try to negotiate a little. When doing so, one can lower their fees drastically.
Buy the equipment: While it may seem prudent to rent equipment, it’s rarely a good deal. No, in reality, when signing up for a credit card processing account, one should buy the equipment. Other times, a smart person should opt to use an iPad or other tablet as they won’t need to spend a grand on a POS system. Otherwise, when renting the machine, one may end up paying 50 dollars a month in added fees.
Think of the situation: Now, when signing up for an account, one needs to think of their situation. For example, when selling high-ticket items, the seller will want to find a company offering a lower percentage fee per transaction. On the other hand, when selling a lot of inexpensive items, like at a convenience store, one will want to look for a company that doesn’t charge a huge transaction fee each time. When doing this, one can find the ideal merchant account for their needs.
All-in-one: In reality, when running a corporation, large or small, one will want to sign up with a merchant provider offering everything. Think about it, when the store owner wants to make a call to the company, he or she will want to receive a quick response. At the same time, most people want the ability to conduct transactions in multiple ways. Simply put, it’s wise to find a company offering everything as this will save the company money in the long run.
With these four simple and easy to follow tips, one can save drastically when looking for a merchant account. Otherwise, it’s easy to waste money when signing up for a new account.
Credit card chargebacks do not frequently occur, but they provide an important measure of consumer protection for consumers who use credit cards. However, chargebacks can also be a significant headache for merchants who accept credit card payments. Due to the importance of chargebacks to both consumers and businesses, it is important for merchants to understand the basics about how credit card chargebacks work.
The Chargeback Process Protects Consumers
A chargeback refers to the reversal of a payment to a merchant due to a consumer’s complaint. For example, a consumer who orders a product online, but does not receive it, can request that the credit card company cancel the transaction. The credit card company will contact the merchant for information and consider the request. If approved, the credit card company will pull the money from the merchant’s account and credit that amount to the consumer’s account.
Chargebacks Result in Fees to the Merchant
Chargebacks are not only a problem for merchants due to the loss of payment, but also due to the charges that credit card companies levy for chargeback investigations. A credit card company will request information on the transaction from the merchant and will charge the merchant a fee. This fee ranges from about $5 to $20 and is required even if the customer’s request is denied. If the chargeback is approved, the merchant will have to pay an additional charge of up to $40 per transaction or even more.
Good Service Prevents Chargebacks
One of the most important things that a merchant can do to reduce chargebacks is to provide good customer service. From providing useful and clear information before a sale, to assuring prompt delivery of goods and services, a merchant who keeps his or her customer happy will have a low rate of chargebacks. Following up with customers after a purchase can also help to prevent chargebacks as well help a business to develop a strong customer following.
Fighting Fraud Prevents Chargebacks
Many legitimate chargebacks are due to fraud. This gives merchants just one more reason to fight against fraudulent transactions. Requiring customers to use various verification methods reduces the risk of fraudulent charges and the resulting chargebacks. Some of these methods include requiring customers to use the three digit CVV code on the back of the card or the credit card company provided security code as well as shipping orders with delivery confirmation.
Chargebacks can occur for several reasons including cardholder disputes, processing errors, fraud, unfulfilled retrieval requests, and authorization problems. Whatever the cause, chargebacks are frustrating because they can cause you money. While they can’t be totally avoided, you can reduce the chances of them happening by taking appropriate precautions. Here are 10 ways to reduce your risk of chargebacks:
1. Understand How Payment Processing Works
Understanding the procedures and steps of credit card processing will increase your awareness of what to do, what not to do, and what to look out for when accepting credit cards. However, some chargebacks could be the fault of the cardholder, bank, or processor.
2. Hold The Card
Hold the card in your hand to examine the expiration date and to compare the signature on the back of the card to the signature on the sales receipt. Do not accept unsigned or expired cards. In addition, ask to see the customer’s identification to compare names.
3. Do Not Process Declined Authorizations
Processing a declined authorization will be a red flag to the bank, and the customer will most likely open a dispute because they wouldn’t recognize the transaction.
4. Have a Clear Return Policy
Whether you’re offering a money back guarantee, or if all sales are final, you must clearly disclose your policy to your customer before the transaction. This will prevent any confusion and complaints in the future.
5. Be Punctual
Submit all credit and debit card payments for processing in a timely fashion. This will prevent a charge from showing up on a customer’s statement well after the purchase- at a time they may have already forgotten about it. In addition, answer retrieval requests as-soon-as-possible.
6. Don’t Duplicate Transactions
Each transaction should be submitted for settlement only once.
7. Card Not Present Transactions
When accepting card not present transactions, use the security features that are provided including address verification and the card validation code.
8. Require Signature for Shipments
Undelivered product claims are one of the biggest problems online retailers face. You can avoid this problem by purchasing a form of delivery confirmation from your carrier. That way, you’ll have proof when a customer opens a dispute.
9. Keep Records
Keeping good records increases your chances of winning a credit card dispute. Keep records of all correspondence including emails, orders, receipts, and phone calls.
Make sure the customer will be able to recognize your company on their statement. If your company’s name is Hal’s Furniture, but it appears on a customer’s statement as HFDG Enterprises, the customer may not know it’s you.