Overview Of Balance Transfer Credit Cards

What Is A Balance Transfer Credit Card?

Simply put, a balance transfer credit card allows you to transfer your card balances over from your other credit cards. Through this transfer you can save money on the APR. If you can consolidate all your balance to a single credit card, you can easily keep track of your debt.

Why Should I Transfer My Balances To A New Credit Card?

Balance transfer credit cards, when used correctly, can help you save money. Most people keep a balance on one credit card, a separate balance on yet another, and pay a high APR to maintain both of them. Balance transfer credit cards have outstanding introductory APR's and the very best balance transfer credit cards will have a comparably lower ongoing APR as well.

Some of the best balance transfer credit cards offer an introductory APR of 0% for an extended period. Those people who are in a debt trap can take advantage of this offer. There are even some balance transfer credit cards which prolong the introductory ARR of 0% until you have paid off all the balance that you have transferred. Certain balance transfer credit cards have a fixed rate and the rate remains the same until you pay off the balance transferred. This type of card, often times lacks the introductory 0% APR offer.

Things to Remember

It is not difficult find a balance transfer credit card, and in fact, you might have already been receiving solicitations from several credit card companies. But finding the best balance transfer credit card can sometimes be a murky affair. Understanding certain key elements regarding these cards can help you to choose the best.

Most people fall for the introductory offer given by the balance transfer credit cards. But this is only for a specific period of time. The period of time offered on these introductory APR balance transfer cards is often times determined by your credit history. So while selecting a balance transfer credit, keep a close eye on the introductory offer. Make sure that the introductory offer will work in your favor.

In some instances, some credit card companies will require an initial balance transfer along with the application for the card. Some people might not be comfortable with such a demand. The best balance transfer credit cards provide flexibility on balance transfers that will allow you to transfer balances at anytime during the introductory period.

Some of balance transfer credit cards might have a fixed rate introductory offer which is not a 0% APR on balance transfers, but is very low, remaining constant until you pay off the balance.

Most balance transfer credit cards have a transfer fee. Make sure that the transfer fee does not negate the financial advantage you are trying to get from the whole process. This aspect should be considered seriously by people who are planning to transfer balances from two or more cards. There will be no transfer fees incurred with the very best balance transfer credit cards.

You should compare your existing cards interest rate with that of the balance transfer credit card. While comparing include all the fees associated with each card as well. And if you are planning to use your balance transfer credit card for ongoing purchases, make sure to get the complete details, including ongoing APR's on purchases, penalties, late payment fees and any miscellaneous surcharges that might be incurred when using the card in this manner. Make absolutely sure that there are no hidden charges.

By: Robert Alan


Merchant Accounts For Beginners

Looking for something that will explain merchant accounts to you? Are you in need of a merchant account for beginners, mini tutoring session? Then you have come to the right place. Below you will find a list of the fundamentals pertaining to merchant accounts and how they work!

Once you have completely established your web-based business, you will want to begin the application process for a merchant account. A merchant account will allow you to accept credit card orders through your website with your website acting as a virtual gateway for order processing.

Your website must be fully established before you apply for your merchant account, as a merchant account supplier will want to see that your business actually exists. Further, a merchant account supplier may require that you have a registered domain name, so you may want to take such information into consideration when you are creating your website.

Applying for a merchant account may take several days, so don’t be surprised if you are not instantly approved. A merchant account supplier will verify much of the information you submitted and will also approve or deny your application based on a number of risk assessments. Such assessments are determined on how long you have been in business, what type of credit you have and what type of business you are running.

Once you have been approved for a merchant account, you will be able to set up your merchant account processing software or appropriate links, depending on the merchant account supplier. Later, after you have successfully set up your merchant account access, your customers will be able to make purchases via your merchant account access and the merchant account supplier will handle all of your transactions.

You will be charged a transaction fee and a discount fee for each transaction, and a monthly statement fee from the merchant account supplier. Additionally, you may be required to set up a reserve based on the risk assessment initially conducted on your business. Although the reserve money belongs to you, the merchant account supplier holds on to such funds in the event that you encounter credit card fraud. Unfortunately, you will be responsible for such charges and your reserve will meet the sudden and unfortunate expense.

It all sound so easy right? Usually it is, however you can run into a snag or two. If you are denied a merchant account based on the risk assessment conducted, how will you collect credit card payments? Through a third party of course!

Third parties are willing to collect credit card payments for you if you pay the transaction fees required. A particularly popular third party processor is PayPal. There are no setup fees involved in enrolling in PayPal, however, you might be required to wait until you have verified your bank account before you can use PayPal’s services.

PayPal is also easy to set up on your website and you can even accept payments via email. What’s more, depending on the type of program you sign up for, you can even set up a shopping cart on your website or bill customers with PayPal’s unique invoicing template. Finally, PayPal offers mediation services when a customer is not satisfied with a product and they also offer the very best technology to help prevent fraudulent transactions.

Merchant accounts and third party processors can literally change the way you conduct business on the Internet. What’s more, both merchant accounts and third party processors broaden your business horizons by increasing the forms of payments that you can accept. Therefore, in using such accounts you essentially increase your bottom line!

By: Kirsten Hawkins