Finance Articles

When it rains it pours. When one area of our finances suffers, it often takes the rest of our financial well being with it. Credit card debt leads to trouble in all areas including our home, autos, and even our checking account.

Often when somebody finds themselves in financial trouble, they end up without enough money to cover expenses. Overdraft fees and bounced checks begin to pile up leaving us unable to pay them and get in to positive financial territory.

Most of us understand that when we dont pay our bills on time, it may be reported to one or all of the three major reporting agencies but do banks do the same thing? 80% of banks report to ChexSystems. Much like credit reporting agencies, if you have a negative report on file with ChexSystems, it is much more difficult to be approved for an account.

You have the right to view your report free of charge. If you are turned down based on that. You can go to chexhelp.com and request a copy it.

Many experts advise avoiding companies offering 2nd chance accounts because of the high fees associated with them.

Are there other ways to get approved for a checking account if you have a negative ChexSystems report?

Yes there are. First, go to the bank you are interested in and make an appointment with the branch manager or new accounts manager. Tell them that youve had some credit problems in the past and ask them for options.

Tell them that you’ve had some problems in the past and ask them for options. For those who had some short term problems but have began to rebuild, often banks will be more receptive to your request if you offer to open a $1,000 Certificate of Deposit for a year.

If, within that year, you show a spotless record, your problems may be solved. Don’t forget about unions. You most likely live in a city where you are able to become a member of a credit union.

They will often give you a chance to prove yourself especially if you take a class that helps you practice better financial habits. Keep in mind that there will probably be a small fee associated with this class.

If neither of these options work, then a prepaid card can do the trick. Many give free direct deposit and free bill pay. Eliminating those costly money orders and check cashing charges of $1.00 - $3.00.

You have probably approached your bank and asked for a rate reviewthis is usually the first step. The answer will most likely be no. However, if your bank concedes that you are on a very high rate and offers to lower the merchant service fee (msf) percentage you will most likely get locked into a contract with unforgiving break fees.

Feeling like your business is being overcharged for bank merchant facility fees ? Business colleagues may be on better rates, or you might feel that you are simply being ripped off !

Merchant Service Fees are what you pay per transaction. Most banks will expect you to process a minimum amount of fees per month, similar to phone cap. This is typically $20 per month. Debit Card transaction fees should be expressed in cents per transaction, no matter what size the transaction. $0.20 is an average Debit Card fee. Credit Card fees are expressed as a percentage. Low turnover business can expect to pay around 2% on MasterCard and Visa. Businesses turning over around $130 000 annually on credit card fees can expect to pay 1% as a guide. $200 000 expect to pay around 0.80% . If you have a higher annual credit card turnover than this then your credit card rate should be lower. Note that rates rarely go below 0.70%.

A Merchant Services Broker is usually the best way to go. They may or may not be dedicated to one banks merchant services. However they do have incentive to get you the best credit card terminal deal. The bank will do what it can to get your business and make very few sacrifices along the way.The point is that the Broker will do their absolute best to save you money with your merchant credit card terminal fees. That is their job. The service will usually be free of charge to you the customer, or you may be required to pay a portion of the savings you make. The free of charge service is the preferred option for most business customers.

Rates differ from bank to bank. This is usually because of a combination of factors. Primarily the number of credit card terminals they have in the market versus the number of active credit cards they have issued.

Merchant Service Fees are what you pay per transaction. Most banks will expect you to process a minimum amount of fees per month, similar to phone cap. This is typically $20 per month. Debit Card transaction fees should be expressed in cents per transaction, no matter what size the transaction. $0.20 is an average Debit Card fee. Credit Card fees are expressed as a percentage. Low turnover business can expect to pay around 2% on MasterCard and Visa. Businesses turning over around $130 000 annually on credit card fees can expect to pay 1% as a guide. $200 000 expect to pay around 0.80% . If you have a higher annual credit card turnover than this then your credit card rate should be lower. Note that rates rarely go below 0.70%.

Merchant Service Fees are what you pay per transaction. Most banks will expect you to process a minimum amount of fees per month, similar to phone cap. This is typically $20 per month. Debit Card transaction fees should be expressed in cents per transaction, no matter what size the transaction. $0.20 is an average Debit Card fee. Credit Card fees are expressed as a percentage. Low turnover business can expect to pay around 2% on MasterCard and Visa. Businesses turning over around $130 000 annually on credit card fees can expect to pay 1% as a guide. $200 000 expect to pay around 0.80% . If you have a higher annual credit card turnover than this then your credit card rate should be lower. Note that rates rarely go below 0.70%.

Credit Card Terminal rental ranges from $9.50 per month to $50. Mobile credit card terminal starts at $29.50 through to $95.00 per month.. Virtual Credit Card terminals do have establishment fees, and transaction fees. You should not have to pay any terminal rental for obvious reasons. For more information vist http://firstcreditcardterminal.com

The reclaiming unfair bank charges phenomenon began in late 2005, and since its start it is estimated that 1 billion pounds has been reclaimed from the banks, Also the website moneysavingexpert.com claims that over 6 million template letters have been downloaded from its website by people wanting to claim unfair bank charges.

As the final appeal to the House of Lords is due to be heard on the 22nd of June this year, and scheduled to last three days. It may be worth looking back and examining how this case has developed and looking forward to where it should go in the future.

The central argument made by the banks is that the regulations the ‘Unfair Terms in Consumer Contracts Regulations’ should not apply to bank charges. The consumer’s argument is that the charges applied historically by the banks for overdraft interest and charges are not fair and proportionate. The banks have not argued that charges are fair, but that this law should not apply to bank charges.

So far the High Court and the court of appeal do not agree with the banks and have consistently ruled with the consumer. The court of appeal in February 2009, ruled that this law does apply to bank charges. In conjunction with the courts we also have the OFT who are ruling on whether the charges are unfair or not. We are waiting for a definitive ruling on this, and it is expected that the OFT will rule that the charges have been unfair and that charges can be reclaimed.

A short outline of the timeline of this case is that the first test cases were made in late 2005, with certain online communities picking up the issue early in 2006, and the mainline media covering the issue in spring and summer 2006, becoming front page news with the newspapers by March 2007.

By July 2007 the Office of Fair trading and the banks agreed to push a test case through the courts. And the Financial services Authority then created the waiver, which has placed all bank charge claims on hold. This waiver has been extended by 12 months, in addition to the original 12 months whilst the case has been processed by the high court, the court of appeal and now the House of Lords. This waiver is expected to be waived after the latest appeal is completed by the House of Lords.

In April 2008 the test case by ruled against the banks, they appealed to the court of appeal and were again turned down in October 2008. Initially the court denied the right to appeal to House of Lords, but the House of Lords overturned this decision in Apr 2009 and the case has since progressed.

When it rains it pours. When one area of our finances suffers, it often takes the rest of our financial well being with it. Credit card debt leads to trouble in all areas including our home, autos, and even our checking account.

Often when somebody finds themselves in financial trouble, they end up without enough money to cover expenses. Overdraft fees and bounced checks begin to pile up leaving us unable to pay them and get in to positive financial territory.

Most of us understand that when we don’t pay our bills on time, it may be reported to one or all of the three major reporting bureaus, but do banks do the same thing? An estimated 80% of banks report to ChexSystems. Similar to the bureaus, if you have a negative report on file, it is almost impossible to be approved for a new account.

You have the legal right to view your ChexSystems report for free if you are turned down for a checking account based on your report. You can go to chexhelp.com and request a copy of your report.

What about this bad credit checking account that you may have read about or seen advertised? Many experts advise avoiding companies offering these types of accounts because of the high fees associated with them.

Are there other ways to still be approved?

Yes there are. First, go to the bank you are interested in and make an appointment with the branch manager or new accounts manager. Tell them that youve had some credit problems in the past and ask them for options.

Tell them that you’ve had some problems in the past and ask them for options. For those who had some short term problems but have began to rebuild, often banks will be more receptive to your request if you offer to open a $1,000 Certificate of Deposit for a year.

If, within that year, you show a spotless record, your problems may be solved. Don’t forget about unions. You most likely live in a city where you are able to become a member of a credit union.

Often they will give you a chance to prove yourself especially if you are willing to take a class that teaches you better financial habits. Keep in mind that there will probably be a small fee associated with this class.

If neither of these options work and you need to look for a bad credit checking account, make sure you weigh all of your options. There are many different companies offering accounts with many a wide range of fees.

Mobile EFTPOS allows many benefits and lets a business receive payment when a customer doesnt have cash on hand but has a debit or credit card. However, for businesses on the move, an EFTPOS solution sitting on a counter back at the office isnt much good.

A technician can, for example, make a service call, invoice the customer and receive immediate payment rather than manually imprinting the customers credit card, which requires the business to get the paperwork to the bank or to enter it electronically at a later time, and which carries no guarantee that the charge will be authorised.

Not only are the charges higher but there is also a potential risk element to the transaction. With mobile EFTPOS, the processing can be done immediately. Importantly an EFTPOS solution supports debit cards, which cant be processed manually and manual terminals pose a security risk .

Alot of alternative phone options are not able to process Debit Card transactions either. This is usually around 40% - 50% of the total Eftpos transactions, and usually a much cheaper transaction option.

The differences between mobile devices themselves is whether the terminal does the communicating or if a mobile phone or PDA is used instead. The terminal is a far better option in the long run and allows the business to accept both credit and debit cards.

Alot of alternative phone options are not able to process Debit Card transactions either. This is usually around 40% - 50% of the total Eftpos transactions, and usually a much cheaper transaction option.

The process of handling a transaction using a mobile terminal is similar to a standalone EFTPOS transaction and far more secure for all parties concerned.

Mobile EFTPOS allows many benefits and lets a business receive payment when a customer doesnt have cash on hand but has a debit or credit card. However, for businesses on the move, an EFTPOS solution sitting on a counter back at the office isnt much good.

A technician can, for example, make a service call, invoice the customer and receive immediate payment rather than manually imprinting the customers credit card, which requires the business to get the paperwork to the bank or to enter it electronically at a later time, and which carries no guarantee that the charge will be authorised.

For these businesses a mobile EFTPOS is vital.There are a number of reasons why mobile EFTPOS is good news for mobile businesses and one of these is the immediacy of payment.

A technician can, for example, make a service call, invoice the customer and receive immediate payment rather than manually imprinting the customers credit card, which requires the business to get the paperwork to the bank or to enter it electronically at a later time, and which carries no guarantee that the charge will be authorised.

From the customers point of view, there is an increasing wariness of manual credit card processing systems. This is because they display the customers credit card number on all copies of the dockets, which isnt the case with electronic solutions.

The process of handling a transaction using a mobile terminal is similar to a standalone EFTPOS transaction and far more secure for all parties concerned.

The differences between wireless eftpos and other mobile devices themselves is whether the terminal does the communicating or if a mobile phone or PDA is used instead. The terminal is a far better option in the long run and allows the business to accept both credit and debit cards.

The phenomenon of reclaiming of unfair bank charges began in late 2005, and since then it is estimated that 1 billion pounds has been successfully reclaimed from the banks. Also the website moneysavingexpert.com has claimed that over 6 million downloads have been made of its template letters by people wanting to claim back unfair bank charges paid.

In the latest twist in this saga the final appeal to the House of Lords is scheduled for the 22nd of June this year, and scheduled for no more than three days. It will be worth looking back and examining how this case has progressed and take a look forward to see where it should go from here.

The Bank’s central argument is that the regulations known as the ‘Unfair Terms in Consumer Contracts Regulations’ do not apply to bank charges. The consumer’s argument is that the charges applied by bank for overdraft interest and charges are not fair and proportionate. The banks counter argument is not the charges are fair, but that this law does not apply to bank charges.

So far the High Court and the court of appeal do not agree with the banks and have consistently ruled with the consumer. The court of appeal in February 2009, ruled that this law does apply to bank charges. In conjunction with the courts we also have the OFT who are ruling on whether the charges are unfair or not. We are waiting for a definitive ruling on this, and it is expected that the OFT will rule that the charges have been unfair and that charges can be reclaimed.

A short outline of the timeline of this case is that the first test cases were made in late 2005, with certain online communities picking up the issue early in 2006, and the mainline media covering the issue in spring and summer 2006, becoming front page news with the newspapers by March 2007.

By July 2007 the Office of Fair trading and the banks agreed to push a test case through the courts. And the Financial services Authority then created the waiver, which has placed all bank charge claims on hold. This waiver has been extended by 12 months, in addition to the original 12 months whilst the case has been processed by the high court, the court of appeal and now the House of Lords. This waiver is expected to be waived after the latest appeal is completed by the House of Lords.

In April 2008 the test case by ruled against the banks, they appealed to the court of appeal and were again turned down in October 2008. Initially the court denied the right to appeal to House of Lords, but the House of Lords overturned this decision in Apr 2009 and the case has since progressed.

Since the Reclaiming bank charges phenomenon began in late 2005, it estimated that 1 billion pounds has been reclaimed from the banks, and the website moneysavingexpert.com claims that close to 6 million template letters have been downloaded from its website alone.

In the latest twist in this saga the final appeal to the House of Lords is scheduled for the 22nd of June this year, and scheduled for no more than three days. It will be worth looking back and examining how this case has progressed and take a look forward to see where it should go from here.

The central argument made by the banks is that the regulations the ‘Unfair Terms in Consumer Contracts Regulations’ should not apply to bank charges. The consumer’s argument is that the charges applied historically by the banks for overdraft interest and charges are not fair and proportionate. The banks have not argued that charges are fair, but that this law should not apply to bank charges.

So far the high court and the court of appeal do not back up the banks and have ruled with the consumer. The court of appeal in February 2009, ruled that this law does apply to bank charges. In conjunction with the courts we also have the Office of Fair trading who need to rule whether the charges are unfair or not. Though we are waiting for a definitive ruling on this, it is expected that they will rule that the charges are unfair and that charges can be reclaimed.

A short outline of the timeline of this case is that the first test cases were made in late 2005, with certain online communities picking up the issue early in 2006, and the mainline media covering the issue in spring and summer 2006, becoming front page news with the newspapers by March 2007.

In July 2007 the OFT and the banks agreed to put a test case through the courts. And the FSA created the waiver that has placed all bank charge claims on hold. This waiver has been extended two times whilst the case has been heard by the high court, the court of appeal and now the House of Lords. This waiver is expected to expire after the latest appeal is heard by the House of Lords.

In April 2008 the test case by ruled against the banks, they appealed to the court of appeal and were again turned down in October 2008. Initially the court denied the right to appeal to House of Lords, but the House of Lords overturned this decision in Apr 2009 and the case has since progressed.

Mobile businesses nowdays have plenty of options for mobile EFTPOS transactions. The speed of billing and receiving payment is critical to success.

A technician can, for example, make a service call, invoice the customer and receive immediate payment rather than manually imprinting the customers credit card, which requires the business to get the paperwork to the bank or to enter it electronically at a later time, and which carries no guarantee that the charge will be authorised.

Not only are the charges higher but there is also a potential risk element to the transaction. With mobile EFTPOS, the processing can be done immediately. Importantly an EFTPOS solution supports debit cards, which cant be processed manually and manual terminals pose a security risk .

A technician can, for example, make a service call, invoice the customer and receive immediate payment rather than manually imprinting the customers credit card, which requires the business to get the paperwork to the bank or to enter it electronically at a later time, and which carries no guarantee that the charge will be authorised.

The differences between mobile devices themselves is whether the terminal does the communicating or if a mobile phone or PDA is used instead. The terminal is a far better option in the long run and allows the business to accept both credit and debit cards.

The process of handling a transaction using a mobile terminal is similar to a standalone EFTPOS transaction and far more secure for all parties concerned.

The differences between wireless eftpos and other mobile devices themselves is whether the terminal does the communicating or if a mobile phone or PDA is used instead. The terminal is a far better option in the long run and allows the business to accept both credit and debit cards.

The transaction involved in transferring money or assets to overseas where they would be managed by banking institutions that operate in zones outside your home country, is called offshore banking. Because the British Channel Islands was located physically off from the main land, the term came to be known as offshore. Because of the freedom from taxes, these islands soon became the most sought after venue for investors for making their money grow. As a consequence, banks thronged the place for new business opportunities in these islands.

Other countries soon followed the leaders and started to come up with their own beneficial offerings and the market boomed. In modern jargon the term relates to assets anywhere in the world which is outside the place where you reside. Such countries would have their own laws which patronize offshore banking. These laws make it compulsory for banks to adhere to strict secrecy about accounts. The laws are not that rigid when controlling offshore accounts which can easily be done in various manipulative ways.

There is no dearth of help and information in case anyone is looking for them regarding offshore banking. It is to be noted that professional guidance must be sought before any investment decisions are made. The slack guidelines related to international banking entails several pitfalls which must be noted before investing.

Also, it’s not free to establish an offshore banking account because they usually require a sizable sum of money. Based on the account type and the tenure of the deposit it could range anywhere from 2 to 10 thousand dollars. I must tell you this that if you keep your money untouched for a longer time, you could expect higher rates of interest. Of course this depends on the offshore banking institution you chose to do business with, that’s why experienced help is indispensable before investing any sum of money.

It all depends on the banking vehicle you have chosen and many offshore banks are now demanding zero to one dollar initial deposit. You do not need too many documents and some banks just require only one. One can witness this from a bank like HSBC whose advertising slogan is ‘the world’s local bank’ and their customers can operate through their online banking services and manage their account irrespective their physical location. HSBC is famous round the world as a bank which is responsible for developing few of the most customer-friendly and easy-going international banking systems and this accolade makes them one of the most sought after banks in the industry.

There are innumerable places where you could get more information about offshore banking and this involves both online or offline sources. There is plenty of material to research for free that can help those that are interested make educated decisions about offshore banking. While this free information can be reached both by individuals as well as corporate houses, business data is expected to be more costly, if the companies are going to use the information to further their profits.

Offshore banking involves trillions of dollars being transacted every daily making it an industry that is massive. The competition has become fierce and banks are willing to offer more for less or free to attract new customers and to inform people that could benefit the most from their services.