Online Financial Tips

Archive for February 28th, 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.