Online Financial Tips

Archive for February, 2011

Small business merchant accounts are on the rise. Some might say that the ole’ credit card terminal may be on its way out due to the recent advancements in technology and computers using pc based credit card processing. While in some cases this might ring true, in most cases it is not. Not to say however that there is plenty of room for pc based credit card processing and then some!

When searching for small business merchant accounts you could use default services like pay pal to process your payments, but you will be paying out the nose for fees. Of course the sign up process for these sites is quick, easy and effective but the higher rates make up for the time you didn’t have to spend on the front end reading through the fine print (and its a really good idea to read it). If you have a small home business and are looking for something reliable these services may be perfect for you. But if you are doing big business every month those 3% fees can really add up!

It’s absolutely paramount that you are careful when you choose the right merchant processor too. There are a tremendous amount of deceptive practices out there, and you really need to watch out for yourself. Some of my other articles go into finer detail on what to watch out for when deciding who to go with for your merchant processing needs. Below are just some examples of my own observations in the field and what can happen. These are people that I have either come in contact with myself, or friends of friends I know.

1. “In June of 2009 – I spoke with a salesperson that said he could save our company a lot of money processing credit cards; after a few months I realized that we were paying more than ever, I called customer service but they had the attitude that they could care less about what the salespeople say to sign up new customers.

Fed up with all of the fees being charged I stopped using their service in June 2008, my bank account is still being debited every month for $35 (5 x $35= $175) with no service being provided. On November 18th, 2008 I called to cancel the service and was told that I would be charged a $295 early termination fee because my 3 year contract wasn’t up (the salesperson lied) and that I needed to send back the machine (salesperson said I would own it after 1 year) or I would be charged an additional $495. I no longer have the machine because it wouldn’t work with the new credit card processing service, believing that I owned it because it had been over 1 year; I traded it for a new unit. Since I no longer have the unit I offered to send them a brand new machine which can be easily purchased for between $110 and $150, the customer service rep said I couldn’t do that and that I would have to pay them the $495.

$295 + $495 + $175 = $965 with no service being provided!!

2. “Our merchant processor has reversed about $20,000.00 worth of transactions. They cannot give us a reason explaining why they have done this. They refuse to return our money. From what I have read on-line, we are not the first company they have done this too. Aside from the money they are stealing from us, we now have waste our valuable time dealing with this issue. We already have one of our attorneys assigned to this case.”

So, as illustrated above in their experiences, READ THE FINE PRINT. It is 99% of the time not in favor of the consumer! Or, you could let someone do it for you.

The processor I currently use has excellent customer support as well as reasonable rates and very helpful reps. In fact they did a free analysis of all the charges on my previous merchant bill and pointed out legitimate and illegitimate charges (there were more illegitimate charges). I was shocked, but not surprised when the results came back. Nevertheless to say, protect yourself first, then ask questions.

In addition to a free statement analysis they offer a powerful affiliate program which enables me to drastically offset my own costs (I don’t mind promoting that!)

The free monthly statement analysis alone was worth the price of admission. Click here to find out more about them.

The most common savings accounts in Australia are:

* Online accounts
* No-fee accounts
* Children’s accounts
* Student accounts

What to look for when comparing online savings accounts

Current research suggests over 80% of all internet users do online banking. The supply and demand for online banking is at an all time high.

Online banking has created some win-win situations for both the banks and for you the consumer. Firstly, interest rates for online savings accounts can be much higher than traditional bank accounts because banks have fewer expenses with online banking.

Banks that provide online banking have lower overheads as there are no physical branches to operate and in-turn less human resources. Which means you can reap the benefits financially.

When comparing which online savings account is right for you, keep in mind not all accounts are the same. You need to find one that suits you, your budget and investment goals. What access will you have with your funds to add to or take out money out? Look into the fee structure to see how they may affect you financially.

When you apply online for your account be sure to read the fine print. Just as you would observe for any financial business transaction.

What to look for when comparing no-fee accounts

No-Fee savings accounts mean there is no bank or on-going fees added to your account. These are a great idea as you are able to have access to your money without any hidden fees that can cost you money.

Some online savings accounts have no fees for when you add or take money out of your investment. While other accounts such as some fixed term deposits, there may be fees for early withdrawals which may affect your interest payable, even eating into your investment capital.

One great thing about no-fee bank accounts is you don’t get hit with hidden fees and can watch your money grow!

What to look for when comparing accounts for children

Financial education is as important as scholastic education for younger children. Therefore, it’s never too early to start teaching children about money management. Simply by opening the right savings account for your child will help prepare them to be financial savvy.

The important thing to look for when opening any type of account for a child is the interest rate. When choosing an account – look for an account that pays the highest possible rate… even on a low balance.

What to look for when comparing student accounts

Student’s savings account are designed for primary or secondary students or students who are studying full-time. So what do you look for when comparing primary or secondary student bank accounts?

Student accounts generally have non-existent fees. This helps you save money by not paying huge fees for your withdrawals or deposits.

If you’re a tertiary student who is trying to juggle school, working, a lifestyle and your finances then a student account may be just what you need. Low or no fees, perhaps an ATM card, access to your money when you need it. Not needing to worry fees will eat it all up at the end of the month.

Remember when applying for an online student savings account in Australia you may need to provide your student number, perhaps your proof of age with a birth certificate or passport and your contact details – like your address, phone and email.

Look for Established Banks

When you are searching for any bank, you want to stick with one that is well-established and legitimate. Going with a brand new bank that doesn’t have much to go by is a risk. For example, you want to make sure the bank is FDIC insured to protect your money in case the bank fails. There are plenty of well-established online banks to choose from.

Find a High Interest Rate

This is the greatest benefit to online banking savings accounts. They have higher interest rates than traditional rates. This is because they have fewer expenses. With a traditional bank, they have to pay for multiple locations, lots of employees, etc. With an online bank, many of these expenses don’t exist. They don’t need to pay for tellers, customer service representatives, building, etc.

With fewer expenses, the savings can be passed on to you through the interest rate of the online banking savings accounts. They are spending less money and can therefore increase the interest rate that you get. Some online banking savings accounts will have higher rates than others, but generally, they are changing all the time. It’s hard to stay on top of things to always have the lowest rate. Find the few banks with the biggest rate and choose the rest based on the following criteria.

Get the Best Customer Service

Customer service is important. The thing about online banking savings accounts is that you get minimal customer service. In fact, if you get more, you will probably get a much lower interest rate. What you need to look for in an online bank are seamless transactions, accuracy, and everything running smoothly. In this case, you won’t need customer service.

You Need Ease and Simplicity

Online accounts are synonymous with easy and simplicity. When you can work with it entirely online, it should be fast and easy. If you don’t get that from your bank, look elsewhere.

Gas cash back credit cards can help the commuter save money. This type of reward card can be used at all types of service stations, and with some card offers you are also given rewards on purchases that are not for gasoline. If you spend a lot of time on the road, whether for work or pleasure purposes, gas cash back credit cards offer rewards that you will be able to use.

Every offer for cash back credit cards is slightly different, so it pays to read the terms carefully to make sure that the card will best meet your spending needs and qualify you for the specific rewards you want. The APR and fees are another consideration that you will need to weigh against the rewards offered.

Some credit cards with cash back on diesel fuel offer tremendous introductory fuel savings. Chase offers a card that will reward you with rebates of over five percent on all of the fuel you purchase for the first ninety days of using the card. It does drop the percentage after the introductory period is over, as most cards do.

Other Cash Back Gas Credit Cards [http://www.consumercreditoutlet.com/card/gasrewardsoffers.html] will offer you rewards when you shop for gasoline at certain fueling stations. This might be a great card for you if you fuel up at the same station, or same brand of stations when you travel away from home. Some of these cash back credit cards will also offer an introductory incentive by doubling your rewards for a period of time.

Certain credit cards with cash back on diesel fuel also provide you with the benefit of counting purchases of auto maintenance as part of your eligible purchases for rewards. It is important to note that even though these cards offer a higher amount of cash back for gasoline purchases, most of them also offer cash back rewards or points for all other types of items you might buy.

There are certain oil companies that offer credit cards, called house cards, that can be used to make purchases only at that company. The beauty of the gas cash back credit cards is that these cards can be used anywhere, not just for gasoline buys, and you will still get cash back rewards. This offers the consumer a great deal of flexibility and choice of shopping where you wish to shop.

With any gas cash back credit cards that you are offered, it behooves the consumer to carefully read the terms of each card offer, so that you understand what the introductory APR is and when the grace period is over what the percentage will be. You will also want to consider that you earn the best rewards when you can pay off your balance each month rather than carrying a balance over from month to month, so keep that in mind to make sure you will receive the rewards you want to earn.

Often houses in pre-foreclosure have not one but two mortgages to deal with. So what is the proper procedure for negotiating a short sale with two mortgages?

On homes under $130,000, the first mortgage is typically higher than the second mortgage and usually the total value of the home. So the best place to start is with the first mortgage. The second often won’t negotiate until they see that the first mortgagor has taken a discount first.

Prepare all the reasons why the bank should take a discount: repairs, pictures, crime in the area, long days on market when it is time to resell, commercial or industrial buildings in the area, environmental problems, leaking septic, and any other reason why the bank won’t get the amount of money loaned back at the sheriff sale or when it gets listed and sold by a realtor.

Once it looks like the first mortgagor is going to accept a discount, start negotiating with the second mortgagor. If the first is taking much of a loss on the mortgage, the second mortgagor won’t get anything from the sale and they know that.

When the amount owed on the second mortgage is anywhere from $10,000 to $30,000, start by offering $500 or $1000 as a full payoff. Then negotiate from there. A 10% final payoff on the second mortgage is a great place to end up. Remember to provide as much data as possible regarding repairs that need to be done on the house to prove that it is worth less than the amount owed.

On a higher end home, keep in mind that the first mortgager is likely to receive close to 90%-100% of the money owed them. So focus on the deep discount with the second mortgage to help cover the costs of the first. ALWAYS ask for a discount on the first. The worse they can tell you is no.

On occasion, the first and second mortgages could equal approximately the same amount. Simply follow the strategy explained above. But know that the first mortgagor will get some money at the sheriff sale. You can get some discount here, but the bigger discount lies with the second mortgagor.

The more information you have which shows the value of the property is less than what is owed, the better-especially if extensive repairs need to be done. Also, make sure the second mortgager does a complete home inspection rather than just driving by the property to assess the face value. This is especially true with the first mortgagor too. They must go inside to see the house, primarily when the house is in bad shape.

You already know the first mortgager will get most of the money owed them, so negotiate with the second mortgager for 90% off the amount owed. And since 90% is your target, start at a simple $500 or $1,000 to give yourself some room for negotiation.

As part of your negotiation tactics, remind the second mortgager that no one will want to buy the house at the sheriff’s sale because the amount of the repairs will be too extensive to make the purchase profitable. Offering them $500 or $1,000 just may be more than they will get if it goes to sheriff sale. So by allowing you a short sale discount, you actually save the bank money.

And everybody wins.

Auto loans bad credit are offered to bad credit people suffering from CCJ, arrears, default, late or missed payments. These loans are short term in nature and can be used to finance your new car. Bad credit auto loans can be used to buy a used car or a new car. The application of these loans will first need the credit score of the borrower according to the FICO score. Equifax, Trans union and Bradstreet are the credit bureaus who decide your credit score. If your rating is 650 or below that, it is considered as the bad credit score. People with bad credit score are given loans with high interest rate.

Auto loans bad credit are offered by the banks, financial institutions, credit unions, dealers and brokers. Individual lenders also offer these loans. There is a risk involved for the lenders. So there is a need for a co-signer. If the borrower fails to repay the loan in time, the co-signer has to repay the full amount to the lender. The borrowers have to pay the full premium prices in order to secure these loans through dealership.

The interest rate varies from lender to lender. The lenders who are guided by FSA are more trustworthy in terms of fees and charges. The repayment options and the interest type are flexible and are always designed while keeping the customers’ credit worthiness. Searching for a trustworthy lender is a tough job. Internet can be a good source to find one. There are many online lenders who have their own websites. You can search and compare the different plans before applying.

Auto loans bad credit is offered by different lenders and financial organizations in UK. If you want to buy a new vehicle but your credit ratings are below than the average you should not worry. The online lenders are offering auto loans for the people whose credit rating is not perfect. The sub prime lenders are also eager and willing to help people in need of auto loans. You may be charged an interest rate which a little bit higher than the normal interest rate prevailing in the market.