How An Internet Credit Card Payment Gateway Works

From : merchantwarehouse.com

1. The online customer finds the merchant's website and adds products to their shopping cart. When they are ready to check out, they enter their billing information. If the merchant does not have a secure page, the customer can be transferred to a secure payment gateway. If the merchant does have a secure site, then the information will be "passed" to the payment gateway without the customer ever leaving the merchant's site.

2. Once the billing information has made it to the payment gateway it is then transmitted to 3rd party processor.

3. 3rd party processor will then pass the information from the payment gateway onto the bank that issued the credit card, which will verify that the card is valid and that the amount requested is available on the card. The bank will set aside the purchase amount for the merchant, then send back an approval number or a decline message to 3rd party processor.

4. That information will be passed back to the payment gateway. It will take approximately 3-15 seconds to complete steps 2-5.

5.The payment gateway will pass the approval code back to the merchant's site or if the merchant does not have a secure site give the customer their approval information. At this point the merchant can also choose to have the payment gateway email the customer a payment receipt.

6.Final payment is secured after this point, and is deposited in the merchant's internet merchant account. It typically takes two business days from the time of the original transaction for the funds to reach the merchant's checking account.

To know more, Visit: Paynet Systems

Credit Card Processing Start to Finish

From : credit-card-processing-review.toptenreviews.com.

Credit card processing can be a profitable service to offer, especially if you own an Internet-based business. Over 90% of online transactions worldwide have taken advantage of credit card payment services because they are fast, convenient, and secure. Understanding how credit card payments are processed is a challenge, however, because most of us never see what happens behind the scenes. Below is a summary of how credit card processing works online.

• A customer enters credit card information to purchase your product or service.


• This data is passed to the merchant web server and a payment gateway through a secure socket layer (SSL)*.
• Once the payment gateway receives the transaction data, their software verifies all of the credit card information and then accepts or declines the credit card.
• The payment gateway sends an email receipt to the merchant web server and to the customer.
• Along with the email receipt, the payment gateway sends the order to the merchant bank. The money is subtracted from the purchaser's credit card account and placed in a 30-day holding merchant account owned by your business.

Credit Card Processing Start to Finish

From : credit-card-processing-review.toptenreviews.com.

Credit card processing can be a profitable service to offer, especially if you own an Internet-based business. Over 90% of online transactions worldwide have taken advantage of credit card payment services because they are fast, convenient, and secure. Understanding how credit card payments are processed is a challenge, however, because most of us never see what happens behind the scenes. Below is a summary of how credit card processing works online.

• A customer enters credit card information to purchase your product or service.

• This data is passed to the merchant web server and a payment gateway through a secure socket layer (SSL)*.

• Once the payment gateway receives the transaction data, their software verifies all of the credit card information and then accepts or declines the credit card.

• The payment gateway sends an email receipt to the merchant web server and to the customer.

• Along with the email receipt, the payment gateway sends the order to the merchant bank. The money is subtracted from the purchaser's credit card account and placed in a 30-day holding merchant account owned by your business.

5 Basic Credit Card Safety Tips

From : hashemian.com.

Ultimately keeping you credit card safe is you responsibility. Indeed, in a worst case scenario, if it can be proven you may have been negligent in keeping your credit card safe, you may find yourself liable for the cost of all transactions made fraudulent on your account should you lose the card.
To help you avoid this, here are 5 basic credit card safety tips:

Never have more cards than you need

While it is always advisable that you have more than 1 credit card, in case it gets lost, you should never have more credit cards than you actually need to use. The principal reason why this is the case is because it becomes harder to keep a track of which cards you have and where you have kept them with the more cards you have.

Always keep a photocopy of your cards

How many times have you been asked what you card number is only to find yourself looking for your card to get the number? Now, what happens if you have a card stolen and no credit card statement to-hand? You have a problem! For this reason, it is always best practice to take photocopies of you credit cards to so that always know where to find the number should anything unfortunate happen to your card.

Always keep your receipts separate

Among the most important of the basic credit card safety tips you’ll receive is never to keep your credit cards and credit card purchase receipts in the same place – because likely as not if you have lost your card, or if it is stolen, then you’ll have lost or stolen the receipts as well. Now there is no way for you to vouch which transactions were yours and which where not – or, there is no way to tell which was the last genuine transaction you made.
Moreover, never keep a record of your PIN with your card, this is only asking for trouble!

Never give your account number to someone you don’t know

If you are ever asked to give your credit card details to someone you don’t know, or who as initiated a discussion with you (rather than the other way round) over the phone or via email, you should always refuse. Worst come to the worst, phone the card issuer and ask them if it is okay for you to divulge the information or phone the enquirer back. If the enquirer seems reluctant to accept this, you have to ask yourself why!

Never leave your account details open to public viewing

It may sound rather basic to say you should never let ‘Joe public’ see your credit card account details, but ask yourself this question: “How often have you received a publication subscription form in postcard format?” Now, suppose you complete this with your credit card details filled in. Suddenly half the world has access your credit card number, expiry date and signature!Although the above may sound like 5 basic credit card safety tips you already know, you would be surprised to see how many people fail to follow one or all of them!

Your Web Merchant Account

Do you know of competitors who are using a Web merchant account? If so, chances are they are more than satisfied with the benefits this type of account can confer on a business of any size. Assuming this is the case, do you really want to be left behind as your colleagues begin to see profit increases from 50% to 400%? Obviously not! Now is the time to maximize your company's potential by applying for a merchant account that will support your company's image and credit card processing operations on the Internet? If you already have a Website, let a merchant account make it even better by enhancing your technical operating functions. If you don't have a Website, a merchant account can make it easy to put one up and start accepting credit payments from your clients.
When you apply for a Web merchant account, you are asking for a bank or another financial underwriter to support your credit excursions into the world of e-commerce. As more and more business owners look to technology to improve the way they do business, they will need support from banks in the form of credit services and technical assistance. A company Website is the perfect means of showcasing your company to every customer in the world. You don't have to rely on expensive print or broadcasting media. Just register for a domain name, find a host site that accepts a low monthly rental fee, hire a designer to help you create a fantastic company image, and you're in cyber-business! Your merchant account can help to pay for these services and assist with locating the technical help you need to make them happen and keep them operational. Alone, you may not make much progress, but with a powerful underwriter working behind the scenes, your company could emerge front and center in your industry.
A Web merchant account will let you extend credit card payment services to customers from every nation in the world. You don't have to wait for checks in other types of currency to arrive or have them converted at your bank, and then wait again to be sure the funds are in the account of origin. With a credit card processing feature on your company's Website, you can easily and quickly process each transaction, or several transactions at once, to keep the cash flow steady and your customers satisfied.
Your Web merchant account will let you adopt other equipment as well, like a pager, a wireless credit card processor for remote destinations, and a digital credit card processor. Gone are the days of manual payment processing that require patient effort on the part of both customer and cashier. Now customers can pay their own bills with a credit card, usually without the help of a company employee. Some start-up effort with the help of your merchant account will let you turn your attention to other things while sales pretty much take care of themselves.

Ten Anti-Fraud Tips For Online Vendors

From : webdevelopersjournal.com.

1. Even though it might be a hassle, insist on a mailing address, zip or postal code and phone number of the buyer and then check them out to ensure they aren't fake.

2. Insist on a faxed customer signature and a faxed photocopy of the credit card (from a photocopy is fine).

3. If you can't contact the buyer by phone or the phone number is unreachable, then don't process the order

4. Use Address Verification services where they're available

5. Be extremely wary of shipping overseas - it can be hard to pursue claims abroad. Eastern Europe is seen by many as a high risk area.

6. Check the email address against the name on the credit card. If the real name doesn't match the email name then you definitely want more reassurance before processing the order.

7. Refuse to process orders from free email domains unless you have incontrovertible proof of the buyer's identity.

8. Never ship products to postal box numbers. Always insist on a physical shipping address.

9. Check the DNS table of the remote IP of the customer. Find out the remote server's geographic area and check it against the address of the customer. Few people connect to the Net using a long distance call. You also need to check the mailing address, phone number and email address of the server, though thieves can also set up servers too.

10. Be especially careful of those wanting higher priced fast delivery or otherwise being price insensitive. Thieves don't care how much it costs as they don't plan to pay.

Types of Credit Cards

Looking to get a credit card? Before you fill out a credit card application, you need to decide what type of credit card will work best for your specific situation. The following is a brief description of the common types of credit cards available through banks or other financial institutions.

Standard Credit Cards
Standard credit cards are the most typical type of credit cards. These are unsecured credit cards that are readily available from most banks and financial groups. These types of cards vary in how the annual percentage rate (APR) is offered or calculated. Here are several examples:

• Balance Transfer Credit Cards
• Low Interest Credit Cards

Credit Cards with Rewards Programs
Credit Cards with Rewards Programs usually "reward" the card holder incentives, rebates and even cash back rewards for purchases they make on their credit card. You can get additional airline miles, cash back rewards or discounts on merchandise for each dollar charged on such a card. Rewards Cards usually require better than average credit for approval. Some examples are:

• Airline Miles Credit Cards
• Cash Back Credit Cards
• Rewards Credit Cards

Credit Cards for Bad Credit
Credit can easily go from good to bad with poor judgment, mismanagement of credit cards or simply a change in job or financial situation. This does not mean you cannot get a credit card. There are several options available for people who have had bad credit in the past and for those who are currently trying to repair their credit.
Depending on your specific situation, debt consolidation, use of introductory APRs on balance transfers or other options may be the best choice. However, if you still need credit or want to start repairing your credit by proof of action, there are several credit cards designed to help "rebuild" poor credit histories. Like:

• Secured Credit Cards
• Prepaid Debit Cards

Specialty Credit Cards
Specialty credit cards are for individuals with unique and special needs for their credit use. Examples of these types of cardholders include business users and students. These credit card programs are designed specifically to meet the needs of these particular groups. e.g.

• Business Credit Cards
• Student Credit Cards

A Home Based Business Merchant Account

Home Based Business Merchant Account benefits can help your company more than you might think possible. If you think because your business is home-based you do not qualify for merchant account status, you are wrong. Many lenders look forward to working with you because they are aware of the commitment, drive, and planning skills that so many home based business owners demonstrate. If your business qualifies, you can become eligible to accept and process credit card payments from your customers, which can increase your client base and enhance profits simultaneously.
A Home Based Business Merchant Account offers benefits like these:

1. Your Home Based Business Merchant Account puts you in the ranks of other, larger companies whose experience you can draw on as you explore avenues for growing your business. You can swap stories, exchange ideas, and offer suggestions to other entrepreneurs in your local business community when you become a merchant services provider. Learn how others are making their mark in the business world, and check out tips for attracting and keeping paying customers.

2. Your Home Based Business Merchant Account will let you employ current cutting edge technology to accept credit card payments from your clients. You can install a credit card processor in your home for pick-up orders, take along a wireless model in your travels to customers' homes or places of business, set up digital credit card payments by telephone, or add a credit card processing feature to your company's Website. You can even add a debit card or e-check processor, along with a pager and other electronic equipment that may help you to do a better job. The lender will work with you to select the most appropriate equipment at the right cost to maximize the return on your investment.

3. Your Home Based Business Merchant Account may help to grow your client base and increase sales volume and profits. That is why so many business owners seek the advantages of a merchant account credit card. They want a chance at making the most on their investment and using the latest technology to get customers to notice them. Many customers prefer paying by credit card, so providing this option is sure to win their favor and appreciation. Happy customers tend to tell others what they like about the business, and this is especially true with home-based businesses.

4. Your Home Based Business Merchant Account will put you in touch with the latest technology. No matter how simple or limited your business may be, you can improve the way you handle things when you learn all about credit card processing equipment. That way no vendor can take advantage of you later, and your customers will reap the benefits of your dependence on this masterful technology. It doesn't matter what your current home-based business income is, because you can apply for a merchant credit account and soon see big changes—for the better—in your business plan and operations. Find out how to make the most of a Home Based Business Merchant Account.

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10 Ways to Reduce Chargebacks and Fraud

Merchant concern about online credit card fraud and chargebacks is rising at a significant rate. According to the 2001 Online Fraud Report, conducted by Mindwave Research, it revealed that, "41% of merchants say the issue of online credit card fraud is 'very serious' to their business." As e-commerce continues to flourish the number of instances of credit card fraud and chargebacks will continue to mount higher. It should go without saying that the need to take certain measures to reduce and virtually eliminate chargebacks and fraud is certainly paramount.

Chargeback, the word that Internet merchants fear. A chargeback is what it's called when a transaction is reversed. In other words, rather than adding money to your account it is deducted. Chargebacks can occur for a wide variety of reasons, such as double-charging, credit card expiration, bank error and customer disputes. If you get too many chargebacks against you, there is a possibility that you will lose your merchant account. Once you've lost your merchant account you are placed on the Visa/MasterCard Terminated Merchant File (TMF/MATCH list) for several years which all Merchant Account Providers have access to, and if they find you on the list they won't reissue a merchant account to you. If you are one of those merchants who have lost their merchant account, there is still hope. Bank Card Law specializes in helping companies who've lost their merchant account because of excessive chargebacks.

Here are some ways you can greatly reduce the instances of chargebacks and fraud, even potentially eliminate the risk altogether:

#10 Interactive Voice Response (IVR) Terminals IVR Terminals, developed by VoiceStamps, are a relatively new solution that greatly reduces chargebacks and fraud by collecting a "voice stamp" or voice authorization and verification from the customer before the merchant ships the order. The voice recorded order verification is then automatically e-mailed to the merchant for filing in the event the customer tries to dispute the charge on their account. More information on this solution can be found at

#9 Collect CVC2 and CVV2 Verification Numbers This tactic alone can not only reduce instances of chargebacks by 26%, according to Visa, but also reduce any pass-through fees that may be charged when a credit card order is conducted. On the back of MasterCard, most Visa and Discover credit cards is a 3-digit security code located right after your credit card number. Requiring customers to give the 3-digit code acts as an additional verification measure. American Express cards also have a similar security code that is located on the front of the card right above the cardholder's account number and is usually 4-digits long. Most online payment processors support entering the security codes when processing credit card orders. Check with your payment gateway provider (i.e. Verisign, Authorize.Net, ECHO Inc., etc) for details.

#8 Use Address Verification System (AVS) AVS checks to ensure the address entered on the order form matches the address to where the cardholder's billing statements are mailed to. People ordering products and/or services using a stolen card number will never use the real cardholder's billing address, so this is your chance to stop the order before it's too late. AVS only works with orders conducted in the US. Failure to use AVS when processing credit card transactions will always result in paying higher credit card processing fees.

#7 Scrutinize orders from developing foreign countries A large percentage of fraudulent Internet purchases are made from Indonesia, Russia, and other eastern block or developing countries. Accept orders from such countries at your own risk until a worldwide AVS system is developed.

#6 Let customers know what name will appear on statements Many merchants who use 3rd Party Processing companies have run into problems because the company name that appears on cardholder's monthly statements is usually the name of the 3rd party processing company and not the company name of the site the cardholder made their purchase from. This isn't always the case, but in many cases it is. If you use a 3rd party processor, and even if you don't, make sure the customer knows what name will appear on their credit card statement at the end of the month. This will help to reduce any confusion that might would otherwise occur.

#5 Handle suspicious orders accordingly If an order seems suspicious the best way to handle the situation is to either call or e-mail the customer and attempt to verify that they placed the order. As a rule of thumb, if in doubt, check things out. It may be a good idea that if a customer makes an unusually large volume purchase from your site to follow-up with a verification call. This is where a system like VoiceStamps, previously mentioned above, can come in very handy.

#4 Watch out for orders using free e-mail addresses Be wary of accepting orders from people who used a free e-mail address when ordering (i.e. Hotmail, Yahoo, etc.). Tracking people who used a free e-mail address is almost impossible, it's much easier for them to get away then if they used their Internet Service Provider (ISP) or their own company web site e-mail address. To check whether an e-mail address is a freebie or not just take the part of the address after the "@" symbol, add "www" to the front of it and see what website it brings up

#3 Signatures on delivery If your business delivers products use a carrier that requires a signature on delivery, and allows you to have a copy of the signature. Retain these for your records.

#2 Request fax copies of ID and credit cardYou may want to request your customer to fax a copy of both sides of their credit card and driver's license. This tactic usually works best in a B-to-B (business to business) sales environment. While this is not a defense under Visa or MasterCard rules, it is yet another way to deter fraud.

#1 Posting a warning messageTaking the time to post a warning message on your order page to those who may attempt to make a fraudulent order will greatly deter the number of instances of fraud. Be sure to mention that IP (Internet Protocol) addresses are being logged. IP addresses can come in handy when locating people about fraudulent orders.Taking measures to deter and eliminate fraud and chargebacks from occurring are a necessity in order to operate a successful online business. Each day companies dedicated to risk management are developing solutions to provide merchants, like yourself, with extra protection because of the financial burdens chargebacks and fraud can bestow if ignored.

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How to Compare Credit Cards

Not all credit cards are equal so when you compare credit card offers it can be challenging. Additionally, what is best for one person may not be best for another.

When considering which credit card is best for you consider and look at several factors, such as: the introductory APR, the fixed interest rate, annual fees, rewards programs, member benefits, and other card member services.
If you are the type of person that pays their entire credit card balance each month on time then a low interest rate credit card is not as important as one with no annual fees or great credit card benefits.

However, most people are not that disciplined about paying off their credit cards in full and on time every month. If you are occasionally late and carry a balance on your credit cards then a low interest credit card might be right for you. The difference between a low 10% APR credit card interest rate and a higher 20% APR credit card interest rate is significant over time.

Accepting Online Credit Cards

When you opened your new business, you thought that everything would be fairly straight forward. After all, businesses every day complete credit card processing, online credit card approval, and internet business. But finding the right way to set up these services for your particular business can be complex and time consuming.

How to Set Up Credit Card Processing
If you want to accept credit card online, you’ll need to set up a credit card merchant account with a reputable firm. There are countless resources available to the new business owner for just this occasion. A wide variety of them can be found online. Search for either credit card processing or credit card merchant account online and begin to visit some of the sites listed in the search results.
Each company will offer its own version of a merchant account. You will sign a contract and pay a regular fee to use the services provided. They company should provide you with all the equipment and software necessary to successfully accept credit card online.

The Options
If you are looking to set up an online account so that you may accept credit card online, you will want to establish a relationship with a reputable company that has been doing business with internet companies for a number of years. Read the testimonials and make sure that the website covers all of your questions and concerns.
Some companies will charge you set up fees or programming fees. Compare each credit card merchant account side by side to see which one charge fees for which services. If fees are waived down the line, it may because the set up fee is so high. If set up is free, you may find hidden fees that will be charged to your merchant account at a later date. Set up a comparison chart for yourself with the major features and what each company offers.

What You Need
Obviously, if you want to accept credit card online, you’ll need to have a website or at least a presence on an existing site.
Most credit card merchant account will require that you pass a credit check. Be sure that you can meet the qualifications of the company you choose. Decide on a back up company or two if you have bad credit or a history of late payments. If you are turned down by your first choice, you can apply to the second or third company on your list.
You will also need an online shopping cart for your customers to use during their visit to your website. The shopping cart stores the items they wish to purchase until they are ready to complete the transaction. With credit card processing, the shopping cart totals all merchandise, plus tax and shipping charges. The merchant service you choose should provide you with an online shopping cart.
Overall, remember to check the reputation of the company you choose and don’t settle for a credit card merchant account that doesn’t meet all your expectations. If one company doesn’t offer what you’re looking for, keep looking.

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Choosing a Credit Card Swipe Terminal

What to look for in finding a merchant account, and lastly the information you'll need to obtain your retail merchant account. Let's switch gears a bit and look into choosing a POS terminal for your business. Do you need a full-featured all-in-one solution? Perhaps just a basic swipe terminal solution is all that's required. We can aid you in the decision-making process.

Determining the Features Your Swipe Terminal Needs
Before you begin looking at swipe terminals, you need to come to a conclusion on what types of payment you will want to accept. POS terminals have the ability to accept much more than just traditional credit cards. Here are some of the other types of payment that can be processed, in addition to credit cards:

Debit Cards
Most all POS terminals have the option of allowing you to accept debit cards. Some terminals have an internal PIN pad which your customers use to enter their PINs. Others have a port to connect a hand-held PIN pad. The biggest benefit to accepting debit cards is the fact that only a transaction fee is charged, almost never a discount rate. Choosing whether to have a POS swipe terminal with an internal or external PIN pad depends on some factors like:

1. Do you mind customers handling your terminal to enter their PIN? Or would you be more comfortable with them using a hand-held PIN pad instead?
2. There is less clutter with an internal PIN pad since it is an all-in-one unit
External PIN pads usually can be purchased for between $100 and $200.

Electronic Check Conversion (ECC)
Simply put, ECC will allow you to process paper checks electronically. In order to do this you'd need to have a check imager/reader. These run a few hundred dollars. What they do is scan the MICR line at the bottom of the check and take an image of the entire check to store for your records. You might see this at some bank ATM machines, where they scan your check and print a copy of it out on your receipt.

Here are some advantages to using Electronic Check Conversion:
1. Money is deposited into your account faster
2. Reduces paper check handling, like eliminating the need to deposit checks at your bank
3. Eliminates risk of losing or having paper checks stolen
4. Returned checks are reported sooner so you can collect more effectively

Loyalty Cards (gift and rewards cards)
Accepting loyalty cards is great if you plan to be very promotional with your goods. This solution is good for primary cash environments like grocery, movie rental, hardware stores, etc. Accepting loyalty cards will help increase business. You've seen these at grocery stores where they scan a little card that gives you "bonus points" for shopping. They also allow you to take advantage of current promotions. Many terminals can be programmed to accept loyalty cards.

Smart Cards
Smart cards are still very new. In addition to paying for goods, like a credit card, smart cards have a special chip in them that allows you to store specific information. College campuses have begun using these to keep information on students, in addition to allowing them to "charge up" their cards with money.
Smart cards will probably take over the traditional credit card market within the next 5 to 10 years. It would be in your best interest to invest in a terminal that can be upgraded for smart cards, either with an internal smart card processor or the addition of a hand-held smart card reader/writer. These external units cost about the same as external PIN pads.

ATM/Check Cards
These are commonly referred to as debit cards; however they are actually check/ATM cards. You can tell their difference from typical debit cards because they will have a Visa or MasterCard logo on them. These cards can either be processed the same as credit cards or you can accept them as debit cards where the customer enters in their PIN. It would be beneficial to you if you accept them like you would a PIN-based debit card, then you'd only incur a small transaction fee and no discount rate. This will save you money in processing costs.

Electronic Benefits Transfer (EBT)
If you wish to cater to food stamp and cash welfare benefit customers, then accepting EBT cards is for you. EBT isn't just good for food purchases, but can include many non-food items. EBT works just like debit card processing. You will either need a POS terminal that has an internal PIN pad or purchase an external PIN pad. EBT customers need to be able to enter in their PIN during checkout.

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Place for your credit card processing equipment.

Before even starting to look for a merchant account provider (or perhaps when you've just started to look), it is important to know where you want to place your credit card processing equipment.

Here are some aspects to consider when deciding where to place processing equipment:

1. Customer access to terminal
If you plan to accept debit cards, customers will need to access your terminal (or PIN pad) so they can enter their PIN.

2. Ease of processing access
The faster the better, customers are an impatient bunch and expect speedy checkout times. Having a terminal located halfway across the store won't accomplish this task.

3. Access to telephone jacks
Terminals will need to be placed close to telephone jacks for connection. Have your local telephone company install jacks where you'll be placing processing equipment.

4. Size of equipment footprint
Do you want an all-in-one integrated terminal solution or separate equipment? More merchants desire a smaller footprint, to conserve countertop space, and tend to choose integrated equipment.

5. Purchasing a second phone line
In most cases, you'll want to purchase a second phone line from your local telephone company to connect your terminal to. Tying up phone lines when processing transactions can cost you sales. You're in business to bring in sales... not lose them.

Credit Repair: How to get back your credit

Is your credit in disarray? Are you constantly looking at those ads on TV that promise to help you get back your credit? If so, there are there are a lot of companies that can help you repair and rebuild your credit, but there are many things you can do yourself.

The first and foremost thing you must do is NOT run away from creditors. Don't wait for them to call you or worse, dont take their calls or return their messages. Contact them directly as soon as you realize that you are not going to be able to make payments to discuss your options. Most creditors are not as hard on you as you might think. They WANT you to pay them back and will usually work out a repayment plan that realistically fits your budget.

Working with your creditor is the best way to prevent the need for credit repair. Your credit score may drop slightly, but nearly as bad that you would need drastic steps to repair your credit ranking. As long as you show a willingness to pay back a creditor and keep in contact with them, you may never get a blemish on your credit report. It's when you try to ignore your creditors that they report you to the credit bureaus.

However, it is human nature to avoid conflict. If you have avoided your creditors and are being denied credit you need to take steps to start rebuilding your credit.

If you are unsure about how to proceed with your credit repair, you can get some help from your local credit counseling services. They can help you to work out a plan and a budget. There are also many non-profit groups that offer help. In addition, you can check with your employer, bank, credit union, or housing authority for no-cost credit counseling programs.

Before you begin your credit repair, you should know your rights under the Far Credit Reporting Act. These rights can help you to understand how to proceed.

First of all, you are entitled to a FREE copy of your credit history report if you've ever been denied credit, insurance, or employment. But you MUST ask for it within 60 days of that denial. You can also get a free copy if you can prove you are:

Unemployed and plan to look for a job in 70 days
On welfare
A victim of identity theft or fraud
Obtaining a copy of your credit report is the first step in credit repair.

If you are denied credit, insurance, or employment because of inaccurate or incomplete credit information, then the company has to give you the name and address of the reporting bureau (either Equifax, Trans Union, or Experian). If there is inaccurate or simply wrong information on your credit report, then you can dispute it with the credit bureau to get it corrected. This is free to do this, but you will need to prove why the information is false. Getting this inaccurate information off your report will help your credit repair.

Here are some final facts that will help you to better understand how credit works and what you can and can't change when you engage in credit repair:

A bankruptcy can stay on your credit report for 10 years
Lawsuits or judgments against you can be reported for 7 years or until the statute of limitations runs out (whichever is longer).
There is no time limit on information reported because of an application for a job with a $75,000 or more salary.
There is no time limit on information reported because of an application for more than $150,000 worth of life insurance
Applying for a lot of credit at once (e.g. multiple credit cards with multiple credit card issuers) will cause your credit score to go down.
Taking the steps to repair and rebuild your credit is the best way to ensure you can enjoy the benefits and advantages of having a credit card. Remember, your credit card is a privilege not a right. Be responsible when using it.


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Staying Out Of Trouble With Credit Cards

Isn’t it great having a credit card? It gives you so many advantages. You can purchase items online, make hotel and car reservations, and so many other convenient things. Despite these advantages, credit cards can create a lot of problems for some people. The way you use a credit card should be taken seriously. The following are a few tips and suggestions about credit cards that can help take some of the disadvantage out of the credit card experience:

*Credit cards are like loans. You have to pay what you owe. So,
don't overcharge.
*Track how much you spend on your credit card. Always know your
exact balance before going out. Little $20 purchases here and there add up.
*Keep your credit card receipts and compare them with your monthly bill.
If there are any discrepancies, report them to your credit card company
immediately.
*Don't give out your credit card to ANYONE, including friends and
family.
*Don't owe more than you can repay. This can damage your credit and
hurt your chances of getting a car loan, mortgage, insurance, or even a job.
*Pay your bills on time. If not, you will incur finance charges and
interest charges that may make it hard for you to pay back your loan. If possible,
pay your bill in full every month. You are liable for $50 of unauthorized charges
per card.
*Don't pay off one credit card with another. This will lead you
down a spiral of mounting credit card debt that you may never get out of.



The way you use credit cards is in how you think about them. I want to offer some credit card tips that might help you change the way you look at credit cards:

Think of a credit card as a 30-day loan that you have to pay back.
Act as if you are paying with cash. Don't spend more than what you would spend if you had cash in hand.
Go out without your credit cards. When you see something you like, go back home and get it. If you still think you need that item, then by all means buy it. But if by the time you get back home, you don't think it's important enough to go back for, let it go.

Pay with cash, and think of your credit cards as insurance.
These are just some credit card tips that will help you stay out of trouble with credit cards. In this world of buy now-pay later, it is important that you understand the heavy responsibility of credit cards. Behind the plastic is real money and real debt. So, you should take credit card usage seriously.



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Foreign Transaction Fees for Credit Cards – Who's Affected?

In recent years, many Visa and MasterCard issuers have begun to include foreign transaction fees for credit card purchases made beyond U.S. borders. Why on earth would the banks choose to do this? Is it just a way for credit card issuers to make more money? It's a natural reaction, but not correct, given the fact that most card fees generally are levied to offset higher costs experienced by banks and major issuers for various types of transactions

The more specific answer concerning foreign transaction fees is that there is simply more inherent risk involved in credit card charges that are made overseas. Issues involving incorrect conversion of currency, merchant charge backs, and outright fraud are significantly more common. Therefore, the Visa and MasterCard associations, which are comprised of member banks, have taken the position of passing these costs on to all consumers with foreign transactions. The typical fee is a flat 3% fee based on the total transaction, including foreign sales and value added taxes.

Are the fees here to stay? Since we have seen no indications otherwise, it appears Officials say that the fees have been effective in offsetting their increased costs and are probably a permanent fixture of the Visa and MasterCard pricing policy. But there are alternatives for foreign travelers who currently carry a Visa or MasterCard credit card. One option is to use traveler's checks when visiting a foreign country. Another is to use a prepaid debit card, although there may be acceptance issues relative to credit cards. Travelers should consult the terms and conditions or card member agreement offer their prepaid debit cards to understand potential limitations.

Since American Express built its brand and reputation on international acceptance, so travelers shouldn't have any issues with either an American Express charge or credit card. But, as stated before, travelers checks can be a safe bet as well. American Express can also meet vacationer's needs in this area as well in the form with their traditional travelers checks, as well as their recently launched travelers check card (a stored value card version of paper travelers checks).

The bottom line is that for most people, foreign travel is going to be a bit more expensive. There are ways to avoid the majority of these fees, however, if you play your cards right.



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Tips for Credit Cards

There are many advantages to having a credit card such as being able to purchase items online and make hotel and car reservations. The way you handle your purchases should be taken seriously. Following are a few tips and suggestions about credit cards.

* Credit cards are just like a loan-you have to pay what you owe - so try and not overcharge more than you can afford to pay.

* Keep track of how much you spend on your credit card. Remember that incidental and impulse purchases add up fast.

* Save your credit card receipts. Compare them with your monthly bill. Promptly report problems to the company that issued the card.

* Never lend your credit cards to anyone.

* Owing more than you can repay can damage your credit rating. That can make it hard to finance a car, rent an apartment, get insurance or even get a job.

* Pay your credit card bill on time, and in full when possible. If you don't, you'll have to pay finance charges on the unpaid balance-and it takes forever to get caught up if you just pay the minimum.



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Credit Cards 101-What are Credit Cards?

A credit card is a great financial tool. It can be more convenient to use and carry than cash and it offers you valuable consumer protections under federal law. However, it is also a big responsibility.If not used carefully, you may end up owing more than you can repay, damaging your credit rating and creating credit problems for yourself that can be difficult to fix.

Chances are your mailbox is full of credit card offers from issuers, each one trying to entice you into applying for their credit card. But, how do you know if the time is right for a credit card? Also, what should you know before you apply for one? The following information can help you determine whether you're ready for a credit card, what to look for when selecting a particular type of credit card and how to use your credit card responsibly.

How to Qualify for a Credit Card
If you're at least 18 years old and have a regular source of income, you are well on your way to qualifying for a credit card. However, even though you may receive many invitations and special offers from credit card companies in the mail, you still need to demonstrate that you are a good risk before such issuers will grant you credit. The proof lies in your credit record. If you've financed a car loan or other purchase, you probably have a record at a credit reporting bureau. This credit history shows how responsible you've been in paying your bills and helps the credit card issuer decide how much credit to extend.

Establishing a Credit History
Suppose you've never financed a car loan, a computer or some other major purchase. How do you begin to establish credit? First, consider applying for a credit card that is issued by a local store and use it responsibly. Ask if they report to a credit bureau. If they do and if you pay your bills on time you'll establish a good credit history.

Second, consider a secured credit card. It requires that you open and maintain a bank account or other asset account at a financial institution as security for your line of credit. Your credit line will be a percentage of your deposit, typically from 50 to 100 percent. Bear in mind that application and processing fees are not uncommon for secured credit cards. In addition, secured credit cards usually carry higher interest rates than traditional nonsecured credit cards. If these stipulations don't appeal to you, another option is to look at prepaid credit cards or debit cards.

Third, consider asking someone with an established credit history-perhaps a relative to co-sign the account if you don't qualify for credit on your own. The co-signer promises to pay your debts if you don't. You'll want to repay any debt promptly so you can build a credit history and apply for credit in the future on your own. An example of this type of credit is a student credit card designed specifically for college students. A parent or guardian will co-sign the student credit card, but the student will gain the benefit from having his/her credit activity appear on his/her own credit history report. Typically, student credit cards have lower credit limits.

A positive credit history is an asset, not only when you apply for a credit card, but also when applying for a job, insurance or financing for a car or a home mortgage.

If Your Credit Card Application Is Denied
If you are turned down for a card, ask why. It may be that you haven't been at your current address or job long enough, or perhaps your income doesn't meet the issuer's criteria. Different credit card companies have different standards. Contact the credit card issuer directly if you are unsure of their minimum credit requirements. However, if you are turned down by several companies, it may indicate that you are not ready for a credit card or that there is a problem in your credit history.

If you are denied credit because of information supplied by a credit bureau, federal law requires that creditor to give you the name, address and telephone number of the bureau(s) that supplied the information. If you contact that bureau within 60 days of receiving the denial, you are entitled to a free copy of your report. If your file contains accurate negative information, only time and good credit habits will restore your creditworthiness. If you find an error in your report, on the other hand, you are entitled to have it investigated by the credit bureau and corrected at no charge.

You should dispute any inaccuracy in your report with the credit bureau as well as with the company that furnished the incorrect information to the credit bureau.



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Manage your Online Credit Card

The Internet is growing in importance in all fields of commerce, and this is being reflected by the way in which credit card companies are now dealing with their customers. You can achieve more and more of the transactions and business of life online and it is fast becoming the preferred means of conducting trade and transactions of all types.

There are very few credit card providers operating these days who will not allow you to interact with the company through the internet. You can start right from the beginning with your first application online and then once you are approved you will also be able to manage your credit card account online also. This means that you will have full access to all of the information in your account and will in many cases be able to up date and amend the information.

Check online at any time...

Also, you will be able to check how much you owe on the card and more importantly, where you have spent the money. You will have full access to your monthly or weekly statements and can see where and when each transaction was made, what was purchased and how much it cost. You will also be able to see how much of your balance you have left to spend.

As well as all of this information you will be able to pay money into your credit card account or pay off your credit card bill if you want to. You can also transfer money out of your credit card account, change your pin and do everything necessary to manage your account. You can do this faster and with a lot less hassle than if you were forced to get in contact with your credit card company by more traditional means such as telephone or mail. The amount of time and effort that this saves is a huge benefit to both credit card companies and customers alike.

The main advantage...

One of the main advantages to managing your credit card online will be that you always know how much you owe on the card. This will give you the benefit of allowing for you to plan for repayments and budget more effectively. This will make it easy to keep on top of all payments and avoid getting into credit card problems before they happen and thus avoid penalties and other charges.

In most cases you will have to register to manage your credit card on line. This will probably mean filling out some online forms and probably over the phone as well. You will have to remember your login identification and password. However, the benefits and convenience of being able to manage your credit card online far outweigh the time and effort that it takes to set up the system.



Credit Card

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Pro's and Con's of Going Cashless with Credit Cards and Debit Cards

We've all heard the prognosticators say that a cashless society is right around the corner. And, they've been saying this since the 1970's. Perhaps the much vaunted cashless world is a virtual never-land where the jetson-type cars and jet backpacks exist that we all grew up expecting to experience.

Regardless of the hype, it is quite possible to live a largely cashless existence in this country. This is particularly true if one lives in a major metropolitan area that provides major retailers and restaurants on every corner. It's almost hard to find a gas station anymore that doesn't have a pay-at-the-pump with a credit card option.

However, this does not mean that cash is dead, by any means. It's just a matter of choice and financial style that determines the degree to which a person relies on plastic, in the form of prepaid debit cards and credit cards, to get through their day to day lives.

There are distinct advantages and disadvantages to both paper and plastic forms of payment.

Concerning cash, it can provide a healthy dose of anonymity when used as legal tender to pay for goods and services. And, privacy is a rapidly vanishing commodity in this country, so that advantage shouldn't be discounted. On the other hand, cash generally requires in-person payments to be made, which can be inconvenient compared to credit card and prepaid debit card transactions. The latter can be used remotely in a point of sale scenario where the customer swipes the card through a reader as well as for online purchases.

Another set of positive and negative aspects of cash exists that should be discussed. Cash has an immediate, visceral quality that can actually help control excess spending relative to making purchases with a credit card or debit card. You can try this experiment the next time you make an impulse purchase and, instead of pulling out the Visa or MasterCard, count out what you owe in cold hard cash. It provides a greater degree of clarity regarding the sacrifice you are making in exchange for the object of your desire. The downside of being a heavy cash user is the security issue. Losing cash or having it stolen is always a risk, and once it's gone, it's gone.

Concerning plastic, there are many reasons to consider moving to this progressive mode of financial management. These include convenience, security and automatic record-keeping of your purchases. But, as with many seemingly great things in life, there is a price to pay for this convenience. One is the fact that it's much easier to let spending get out of control when all you have to do is swipe a plastic card to make your purchase.

Another involves the expense of paying interest for months or years if you are unable to pay your balance in full each month.


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Credit Cards and Charitable Giving

In recent year’s, credit cards have taken on yet another useful function, that of funding your favorite charities. While most people think about using credit cards for online shopping, buying groceries or filling up their cars with gasoline, the thought of giving with a credit card is somewhat new.

This topic came to the forefront recently with the massive destruction of hurricane Katrina and the related outpouring of charitable giving major charities . In television, direct mail and online advertising, the word was quickly spread that not only could donors make a difference in relieving the suffering. And, with their donations to these national charities, donors could make this impact immediately by using a credit card.

Charitable giving with a credit card is not only limited to disaster situations, either. Large charities like the United Way have been able to dramatically expand their humanitarian reach by enabling supporters to make pledges through one-time or recurring monthly payments charged directly to some credit card.

Other non-profit organizations, apart from true charities, can benefit from credit card payments. Beyond the basic immediate payment benefit are the positives of capturing donor information for future giving and tax deduction purposes. A good example is local public radio and television stations that offer supporters a way to break up larger annual gifts into manageable monthly increments using an automatically recurring credit card payment.

And, depending on the type of card used to make charitable donations, airline miles, cash back and other credit card-related rewards can potentially be earned on any amount pledged. This is because the charge made to the card is considered a standard merchant purchase transaction by the credit card issuer when calculating eligible purchases.

So, when the time comes to open up your heart and wallet for charitable giving, remember to consider making that gift with a credit card, especially if you have a credit card that offers some type of rewards. Who knows, maybe if you have been religiously using a rewards credit card throughout the year, the cash back earned could itself be enough for a generous donation to a deserving cause.

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Using a Business Credit Card to Fund Your Startup

Business credit cards have been around for many years, but have only recently explicitly targeted true entrepreneurs by offering special financing incentives. Some credit cards services established the gold standard in the genre of business credit cards and focused on the business executive with exclusive corporate card options. But, the business card market has finally taken notice of the backbone of the American economy – the small business sector.

Now, many major credit card issuers are aggressively going after the small business market with a diverse array of credit card products. These financial services juggernauts are offering everything from rewards, cash back and airline miles to huge initial credit lines with 0% introductory periods.

What isn’t explicitly stated in most credit card offer’s features is the fact that small business owners can leverage business credit cards for startup capital. These little pieces of plastic can actually be the life blood to fuel and sustain a business startup. Once the financial pump has been primed, revenue from operations can be used to repay these micro-business loans before the finance charges become too onerous.

For example, a small eCommerce startup might need five thousand dollars to buy a computer, pay for a hosting service and buy an initial round of online advertising placements. But once the initial business revenue starts flowing in, the credit card balances can be repaid. And, if the small business credit card used features a no-preset spending limit (i.e. a dynamic credit line) the credit line will increase as larger and larger expenditures are made and then repaid.

Everyone has heard of the brazen independent movie producers that have financed their first film with a wallet load of personal credit cards and lived to brag about it. But many entrepreneurs, while not exactly a risk averse group, a probably a little wary about putting their personal finances into play for launching their ventures. And this is where small business credit cards can come to the rescue.

Beyond mere financing, these types of credit cards can provide a host of other benefits that are critical to small business success. These benefits include expense and revenue tracking and the ability to download statements into business budgeting software applications . Expense management can be a make or break proposition for startups, so leveraging this aspect of a business credit card can be vital for long term success.

So, if you are contemplating taking control of your financial future and living out your dreams by launching a business startup, consider the benefits of using a business credit card to fund, track and reward your business activities.

Advantages of Merchant Accounts and Other Online Payment Systems

Merchant accounts and third party payment processors provide needed online services.
Advantages include:

*Customer convenience - Online merchant accounts save site visitors the extra step of writing and sending a check or calling in an order.

*Increased functionality - Internet processors also enable Web sites to be direct sales generators rather than simply lead generators or online brochures.

*Additional direct sales channel - Credit card processors help you add Internet sales as a revenue stream.

*Immediate authorization - With automation, you know immediately if an Internet payment is valid. No waiting for checks to clear.

*Streamline payment process - With Internet merchant accounts and other payment providers, there are fewer steps necessary to assure valid payment as compared to less automated processes.

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